PHOTO DIVISION (PIB)
WhatsApp Messages Help Uncover ₹200 Crore Tax Evasion
Union Finance Minister Nirmala Sitharaman recently defended the provisions of the new Income Tax Bill, 2025, emphasizing the role of digital evidence in uncovering financial misconduct. The minister revealed that WhatsApp messages were instrumental in uncovering ₹200 crore linked to tax evasion through crypto assets. This revelation came during her address to the Lok Sabha, where she highlighted the growing importance of digital tools in modern tax enforcement.
“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,” Sitharaman said, detailing how digital evidence was crucial in identifying financial wrongdoings.
The minister also pointed to other digital tools like Google Maps history and Instagram accounts, which were utilized to identify locations used for hiding cash and to trace ‘benami’ property ownership. These efforts are part of a broader strategy to keep tax enforcement aligned with emerging technologies, ensuring that virtual assets such as cryptocurrencies do not escape scrutiny.
Digital Tools to Combat Tax Evasion
Sitharaman explained that the new Income Tax Bill grants tax authorities the authority to access communications across platforms like WhatsApp, Telegram, and emails, along with business software and servers used for concealing financial transactions. The aim is to modernize tax investigations and make them more effective in the digital age.
She also highlighted the importance of collecting evidence from digital accounts, such as emails and social media platforms, to ensure that tax evasion cases are adequately supported in court. According to her, such evidence is key to calculating the exact amount of tax evaded.
Income Tax Bill, 2025: Key Provisions
The Income Tax Bill, 2025, introduced in February 2025, is designed to replace the Income Tax Act of 1961. It retains much of the original law while simplifying its language and eliminating redundant sections. A key feature of the new bill is its inclusion of virtual digital assets as undisclosed income, covering cryptocurrencies and other digital tokens. The bill also empowers tax authorities to access and search virtual digital spaces during investigations, including emails, social media accounts, and online investment platforms.
