New Delhi, March 25, 2025 – Union Finance Minister Nirmala Sitharaman defended the contentious Income Tax Bill, 2025, in the Lok Sabha on Tuesday, revealing that WhatsApp messages helped tax authorities uncover Rs 200 crore in unaccounted money linked to crypto assets. Addressing privacy concerns, she argued that accessing digital records is vital to combat tax evasion in an increasingly online economy.
Speaking during a debate on the Finance Bill, Sitharaman cited cases where encrypted phone messages led to detecting Rs 250 crore in hidden funds, with WhatsApp chats alone exposing Rs 200 crore tied to cryptocurrencies. “Google Maps history traced cash hideouts, and Instagram posts revealed ‘benami’ properties,” she added, per Hindustan Times. The new bill, effective April 1, 2026, aims to overhaul the 1961 Income Tax Act, empowering officials to probe digital footprints—emails, social media, and cloud storage—during searches authorized under existing laws.
The proposal has sparked alarm. Critics, including Congress, call it a privacy overreach, fearing a “surveillance state” (The Hindu, March 7). Yet, Sitharaman insisted it’s a necessary update—India’s digital transactions hit Rs 2,331 lakh crore in 2024 (RBI), a goldmine for tax dodgers without oversight.
