In a major overhaul of its operational playbook after 17 years, the government has issued a revised 'search and seizure manual' for Income Tax (I-T) officers, outlining new tools and methods to curb tax evasion while stressing data privacy compliance, reported The Economic Times.
The updated internal handbook empowers tax investigators to go beyond conventional methods like deploying Look Out Circulars (LOCs) to prevent suspects from fleeing, scouring the dark web for illicit financial activities, and probing for crypto wallets.
Officers have also been granted access to data tools developed by the Centre for Development of Advanced Computing (CDAC), allowing them to explore hidden corners of the internet often frequented by tax evaders.
According to ET, I-T officials now have authorised credentials to enter this unindexed digital space. However, they are instructed to maintain anonymity when using publicly accessible platforms like LinkedIn or Truecaller.
“The manual comes at a time when the Supreme Court is deliberating on the need for standard rules governing search and seizure of digital devices. Also, the Madras High Court recently ruled that tax authorities must strictly comply with the procedures set out in their manuals during search and seizure,” ET quoted Ashish Karundia, founder of the CA firm Ashish Karundia & Co, as saying.
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