According to R.N. Prabat, Member (Legislation) of the Central Board of Direct Taxes (CBDT), the digital data collected by income tax officials during searches will be used strictly within the framework of the Data Protection Law and other relevant regulations.
Under the new Income Tax law, officials will have the authority to take laptops, emails, and other digital documents during searches. This new Income Tax law has already been notified and will come into effect from 1st April 2026.
What is the new law?
Explaining the details, Prabat stated that clear guidelines will be prepared regarding the use of digital documents collected during searches. Their usage will strictly follow the Data Protection Law and other applicable regulations. The government is also preparing to implement the Data Protection Law soon.
Also Read: New Income Tax Bill 2026: Key Changes and Benefits for Taxpayers
Benefits of the new Income Tax law
Prabat mentioned that the new law will make it easier for both businesses and salaried individuals to understand and comply with tax provisions. The formats of quarterly TDS forms and Income Tax Returns will also be revised. Additionally, tax officials are being trained for a smooth transition.
He highlighted that the main aim of the government was to simplify the Income Tax law. To achieve this, the word count of the new law has been reduced to 2.67 lakh words compared to the current 5.12 lakh words. Similarly, the number of chapters has been reduced from 46 to 23.
However, the number of tables has been increased from 18 to 57 to make the law more understandable through visual representation. The writing style of the law has also been improved by removing unclear terms and unnecessary provisions in various sections.