IFF Writes To Parliament Committee Asking For Safeguards In New Income Tax Law

The Internet Freedom Foundation (IFF), a digital rights group, has submitted a letter to the Select Committee of the Lok Sabha, expressing deep concerns over the search and seizure provisions in the new Income Tax Bill. The organisation has requested greater safeguards and judicial oversight to be added to these provisions, which they believe pose significant threats to citizens' right to privacy.

Specifically, the IFF is targeting clauses 247, 249, and 261 of the bill, which allow tax authorities to conduct intrusive digital searches on mere suspicion of tax evasion. Clause 247 enables officials to forcefully enter and search premises suspected of containing records related to tax offenses, seize any records or documents deemed suspicious, and bypass security mechanisms on electronic devices or "virtual digital spaces" to compel individuals to grant access.

Some legal experts have previously warned that this provision effectively allows the government to hack into people's devices, email inboxes, and social media platforms without a warrant. The IFF is concerned that such powers could be misused to target individuals or groups based on suspicion rather than evidence.

The organisation has also highlighted Clause 261, which defines "virtual digital space" as including email servers, social media accounts, online investment, trading, and banking accounts, websites used to store asset ownership details, remote or cloud servers, digital application platforms, and similar spaces. This provision, the IFF argues, would allow tax authorities to access personal digital spaces unrelated to the investigation, posing a significant threat to individuals' right to privacy.

Another clause of concern is Clause 249, which prohibits the revelation of reasons behind search and seizure operations. The IFF sees this as a way for tax authorities to operate in secrecy, without accountability or transparency.

In its letter to the Select Committee, the IFF has requested several safeguards to be added to these provisions. These include the need for judicial oversight, transparency in search and seizure operations, and clear guidelines on what constitutes "suspicion" of tax evasion. The organisation hopes that by adding these safeguards, the government can strike a balance between enforcing tax compliance and protecting citizens' rights.

The IFF's concerns over the new Income Tax Bill highlight the ongoing debate about balancing national interests with individual freedoms in the digital age. As the world becomes increasingly digitised, it is essential to ensure that laws and regulations are designed to protect our rights while also promoting economic growth and development.