New Delhi: Finance Minister Nirmala Sitharaman has defended a new rule in the Income Tax Bill 2025 that allows tax authorities to access encrypted messages and emails. The government says this is necessary to stop tax evasion and financial crimes.
Speaking in Parliament, Sitharaman mentioned a case where WhatsApp messages helped authorities seize Rs 90 crore in cryptocurrency from an illegal group. She explained that criminals are now using encrypted apps like WhatsApp to hide illegal money and avoid paying taxes.
Why is This Law Important?
Sitharaman said that the old 1961 Income Tax Act only talked about physical records like books and ledgers. It did not cover digital records, creating a gap in tax investigations. “This new bill will fix that issue,” she explained.
How Authorities Are Using Encrypted Messages
The Finance Minister revealed that tax officials have already found Rs 250 crore in hidden money by checking encrypted messages. WhatsApp chats have exposed fake business transactions worth Rs 200 crore and fraud in property deals, where capital gains taxes were reduced from Rs 150 crore to just Rs 2 crore.
Authorities have also used Google Maps history to find hidden cash locations and track unreported transactions. Even Instagram profiles have helped trace luxury cars linked to illegal properties.
Privacy Concerns and WhatsApp’s Response
Many people are worried about privacy, as the government has not explained how it will access encrypted messages. This raises questions about whether WhatsApp’s end-to-end encryption was broken or if officials are simply checking seized mobile phones.
WhatsApp, which has nearly three billion users, has not commented on the new law. The company insists that its encryption ensures only the sender and receiver can read messages. “No one outside the chat, not even WhatsApp, can access them,” says its policy.
WhatsApp vs. Indian Government: A Long Battle
This is not the first time WhatsApp has clashed with the Indian government. In 2021, WhatsApp sued the government over a law requiring social media companies to track forwarded messages.
In April 2024, WhatsApp told the Delhi High Court that it might leave India if forced to weaken its encryption. The new Income Tax Bill 2025 could make this dispute even more serious.
As the debate continues, the big question is: Can the government balance privacy and national security while enforcing this new rule?