Claims That New Powers Being Launched In New Revenue Tax Invoice Incorrect: Sources

New Delhi: Sources within the Central Board of Direct Taxes (CBDT) have sought to clear the air after some issues had been raised that Revenue Tax authorities have been given further powers within the Revenue Tax Invoice 2025 to realize overriding entry to the digital information together with e-mail, social media, and digital digital area.

Sources within the Central Board of Direct Taxes (CBDT) defined that Part 132 of Revenue Tax Act, 1961 allows authorised officer to require any one that is present in possession of books, accounts, or different paperwork within the type of digital report to afford facility to examine such paperwork and to grab such doc (doc consists of digital report as per Part 2(22AA) of Revenue Tax Act, 1961.).

“Claims that new powers are being launched are incorrect,” one of many sources stated. Equally, Part 247 of the Revenue Tax Invoice, 2025, prescribes that an authorised officer can acquire entry by overriding the entry code of a pc system or digital digital area.

“It is just restating of the already present powers to the authorised officer,” one of many sources defined. It’s additional emphasised that this energy is given to the tax authorities in uncommon circumstances the place a reliable authority orders a search and seizure operation and the particular person involved will not be cooperating with the proceedings.

One of many sources additionally reiterated that “this isn’t the usual follow.” It applies solely in distinctive circumstances. This was the case underneath the Revenue Tax Act of 1961 and stays unchanged within the New Revenue Tax Invoice of 2025. Lok Sabha Speaker Om Birla had constituted a 31-member Choose Committee of Lok Sabha MPs to look at the brand new Revenue Tax Invoice, which goals to simplify tax legal guidelines, modernise definitions, and supply extra readability on numerous tax-related issues.

This new invoice, tabled in Lok Sabha by Union Finance Minister Nirmala Sitharaman on February 13, seeks to exchange the present Revenue Tax Act, 1961 and introduce modifications that have an effect on totally different classes of taxpayers, together with people, companies, and non-profit organisations. Within the July 2024 Finances, the federal government had proposed a complete evaluation of the Revenue-tax Act, 1961. The aim was to make the Act concise and lucid and cut back disputes and litigation.