Nirmala Sitharaman Defends Income Tax Bill, Reveals WhatsApp Messages Exposed ₹200 Crore 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.

“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.

Speaking in the Lok Sabha, she said digital evidence, including WhatsApp messages and Google Maps location data, is already being used in tax investigations and must be formally recognised in the law.

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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 FM clarified that the existing tax framework, governed by the Income Tax Act of 1961, primarily refers to physical books of accounts, ledgers, and manually recorded financial data.

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This has led to legal challenges when tax officials seek access to digital records during search and seizure operations. “Right now, people argue, ‘I have shown my ledger, why do you want my passcode?’ This gap is being addressed in the new bill before the select committee,” she explained.

The FM stressed that without explicit legal backing, even clear evidence of financial misconduct can be challenged in court. “If the law doesn’t provide for it, despite having the evidence in front of us, it becomes tedious. We need to close this loophole,” she stated.

The new bill proposes to formally include digital data access in tax investigations, ensuring that tax authorities have the legal mandate to examine electronic records where necessary. “The digital element must be brought in, or we risk letting tax evaders exploit legal gaps,” the minister added.

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