Sitharaman Defends Income Tax Bill, Cites WhatsApp Messages in ₹200 Crore Tax Evasion Case

Union Finance Minister Nirmala Sitharaman has defended the provisions of the Income Tax Bill, 2025, highlighting how WhatsApp messages helped expose ₹200 crore in unaccounted money linked to cryptocurrency transactions. Addressing the Lok Sabha, she stressed the importance of allowing tax authorities access to digital records to combat tax evasion and financial fraud effectively.

According to MoneyControl, encrypted mobile messages played a crucial role in uncovering ₹250 crore in undisclosed assets, with WhatsApp conversations specifically revealing ₹200 crore in hidden crypto-related transactions.

Beyond WhatsApp, Sitharaman also disclosed that Google Maps location history has been used to track frequently visited cash stash points, while Instagram activity has provided insights into ‘benami’ property ownership. She emphasized that modern tax enforcement must leverage digital tools to ensure that virtual assets, including cryptocurrencies, do not escape scrutiny.

Expanded Powers Under the New Bill

Sitharaman explained that the Income Tax Bill, 2025, introduced in the Lok Sabha on February 13, grants tax officials access to:

✅ Communication platforms – including WhatsApp, Telegram, and emails
✅ Business software and digital servers – suspected of hiding financial transactions
✅ Virtual spaces – such as online investment platforms and social media accounts

These provisions, she said, will strengthen evidence collection in tax evasion cases and ensure accurate tax assessments.

Key Changes in the Income Tax Bill, 2025

The new bill aims to replace the Income Tax Act 1961, simplifying legal language and removing outdated provisions. A significant update is the inclusion of virtual digital assets (VDAs) in the definition of undisclosed income, covering:

🔹 Cryptocurrencies
🔹 Digital tokens
🔹 Other cryptographic assets

Additionally, tax authorities will have the power to override access codes during investigations to inspect digital environments where financial records are stored.

By integrating advanced digital tracking mechanisms, the government aims to modernize tax enforcement and ensure transparency in the evolving digital economy.