‘WhatsApp messages helped uncover ₹200 crore in tax evasion’: Nirmala Sitharaman defends Income Tax Bill

Citing WhatsApp messages that helped unearth ₹200 crore in unaccounted money linked to crypto assets, Union finance minister Nirmala Sitharaman on Tuesday defended the provisions of the new Income Tax Bill, 2025.

Addressing the Lok Sabha, Nirmala Sitharaman said granting tax authorities access to digital records is crucial for addressing tax evasion and financial fraud.

“Encrypted messages on mobile phones led to unearthing ₹250 crore unaccounted money. Evidence from WhatsApp messages of crypto assets has been detected. WhatsApp communication helped unearth ₹200 crore unaccounted money,” MoneyControl quoted the finance minister as saying.

Sitharaman also mentioned that Google Maps history was used to identify locations frequently visited to hide cash, and Instagram accounts were analysed to determine ‘benami’ property ownership.

The minister said the move helps keep tax enforcement up to date with new technology, ensuring that virtual assets like cryptocurrencies are not overlooked.

She explained that the new bill gives officials the right to access communication platforms like emails, WhatsApp, and Telegram, as well as business software and servers used to hide financial transactions, the report added.

She also said that collecting evidence from digital accounts is important to prove tax evasion in court and to calculate the exact amount of tax evaded.

The Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, seeks to replace the Income Tax Act of 1961. While retaining most of the original provisions, the Bill’s primary focus is simplifying the language and removing redundant sections.

A key update in the Bill is the inclusion of virtual digital assets within the definition of undisclosed income, broadening coverage to include digital tokens, cryptocurrencies, and other cryptographic representations of value, reported PRSIndia

The Bill also grants income tax authorities the power to access virtual digital spaces during search and seizure operations. This includes email servers, social media accounts, online investment and trading platforms, and websites that store asset ownership details. Authorities can override access codes to inspect these digital environments as part of tax investigations, it added.