On Tuesday, referring to WhatsApp messages that exposed ₹200 crore in unaccounted money tied to crypto assets, Union Finance Minister Nirmala Sitharaman justified the new Income Tax Bill 2025 provisions. Speaking in the Lok Sabha, Nirmala Sitharaman emphasised that allowing tax authorities to access digital records is essential for tackling tax evasion and financial fraud.

“Encrypted messages on mobile phones led to the unearthing ₹250 crore unaccounted money. Evidence of crypto assets has been detected in WhatsApp messages. WhatsApp communication helped unearth ₹200 crore unaccounted money,” news platform MoneyControl cited the finance minister while speaking.

Sitharaman further stated that Google Maps history was used to track locations where cash was frequently hidden, while Instagram accounts were analysed to uncover ‘benami’ property ownership. She emphasised that this approach helps tax enforcement stay updated with modern technology, ensuring that virtual assets like cryptocurrencies are appropriately monitored.

She stated that the new bill grants officials the authority to access communication platforms such as emails, WhatsApp and Telegram, along with business software and servers used to conceal financial transactions, according to the report. She also stressed that gathering evidence from digital accounts is crucial for proving tax evasion in court and accurately determining the amount of tax evaded.

The Income Tax Bill 2025, presented in the Lok Sabha on February 13, aims to replace the Income Tax Act 1961. While keeping most of the existing provisions intact, its main objective is to simplify the language and eliminate outdated sections. One significant change in the Bill is the classification of virtual digital assets as undisclosed income, expanding its scope to cover digital tokens, cryptocurrencies, and other cryptographic assets, according to PRSIndia. The Bill empowers income tax authorities to access virtual digital spaces during search and seizure operations. This has email servers, social media accounts, online trading and investment platforms, and websites containing asset ownership records. It also allows authorities to bypass access codes to examine these digital spaces as part of tax investigations.