Central Board of Direct Taxes (CBDT) Member (Legislation) RN Prabhat has clarified that the digital data collected by Income Tax Department officials during searches will only be used under the data protection law and other applicable laws.
Under the new Income Tax law, officers will have the authority to take laptops, e-mails, and other digital documents during searches.
This new law has already been notified and will come into effect from April 1, 2026.
Guidelines and Data Protection
Explaining further, Prabhat said that clear guidelines will be prepared regarding the use of such digital documents taken for investigation.
These documents will be used only within the scope of the data protection law and related laws. The government is also preparing to implement the data protection law soon.
Benefits of the New Income Tax Law
Prabhat highlighted that the new law is being designed to be simpler for both businessmen and salaried individuals.
The format of quarterly forms related to income tax returns and TDS will also be revised. Training programs are being conducted for income tax officers to adapt to these changes.
The government’s main goal is to make the law easy to understand. For this reason:
The number of words has been reduced from 5.12 lakh to 2.67 lakh.
The chapters have been cut down from 46 to 23.
The number of tables has been increased from 18 to 57, making the law easier to grasp at a glance.
Ambiguous and redundant provisions have been removed, and the writing style has been simplified.
