New Income Tax Law From April 2026: CBDT Assures Safeguards on Digital Data Seized During Searches
New Delhi, 25th August 2025: The Central Board of Direct Taxes (CBDT) has clarified that any digital data seized during searches by the Income Tax Department will be used strictly within the framework of the proposed Data Protection Law and other relevant legislations.
CBDT Member (Legislative) R. N. Prabat said the new Income Tax law, which has already been notified and will come into effect from April 1, 2026, empowers officers to take laptops, e-mails, and other digital documents during search operations. “Guidelines will be issued on how such digital records will be examined. Their use will remain confined to the scope of the data protection law and other applicable provisions,” Prabat stated.
He also confirmed that the government is preparing to implement the long-awaited Data Protection Law soon, which will add a layer of safeguards for taxpayers.
Simplified tax law for ease of compliance
Explaining the broader objective behind the reforms, Prabat said the new legislation has been designed to make tax compliance simpler for businesses as well as salaried individuals. “We are also preparing to revise the format of income tax returns and quarterly TDS forms to make them easier to file. Officers are undergoing training for the transition,” he added.
The law has been significantly condensed, reducing the number of words from 5.12 lakh in the existing Act to 2.67 lakh. The total number of chapters has been cut down from 46 to 23.
More tables, clearer language
To enhance clarity, the number of explanatory tables has been expanded from 18 to 57. “The drafting style has been improved, vague terminology has been eliminated, and redundant provisions have been removed,” Prabat noted, stressing that the aim is to ensure taxpayers can grasp the law at a glance.
With these reforms, the government hopes to strike a balance between enforcement powers and taxpayer-friendly compliance norms, while ensuring that privacy safeguards are upheld.
