The Indian Influencer Governing Council (IIGC) is closely monitoring the Income-tax Bill 2025, which aims to modernize India's tax framework by simplifying laws and enhancing digital integration. This bill introduces significant changes, including the power for tax officials to access virtual digital spaces if they suspect undisclosed income.

The bill empowers tax officials to inspect digital records during search and seizure operations if they suspect undisclosed income. This includes accessing emails, social media accounts, trading accounts, banking accounts, and cloud storage. The definition of "virtual digital space" is broad, encompassing any digital environment where users interact or conduct activities using computer systems and networks.

Tax officials can access these spaces if they have reasons to believe that an individual is deliberately hiding details of an undisclosed income. If a taxpayer fails to provide access or assist in the investigation after receiving a summons or notice, officials may override digital security measures to gain access.

Key Implications for Influencers

For influencers, this means that their online activities could be scrutinized more closely. Influencers often earn income through sponsored posts, affiliate marketing, and brand collaborations, which may involve financial transactions and communications via digital platforms. The ability of tax officials to access these platforms could impact how influencers manage their finances and disclose income.

Indian Influencer Governing Council (IIGC)'s Take

The Indian Influencer Governing Council (IIGC) views these developments with caution. While acknowledging the need to combat tax evasion, IIGC emphasizes the importance of balancing enforcement with privacy rights. "Influencers must be aware of these changes and ensure transparency in their financial dealings. However, it's crucial that any access to personal digital spaces is conducted with clear guidelines and oversight to prevent misuse.

The IIGC assures it will continue to advocate creators for their interests, ensuring that any regulatory changes are balanced with privacy protections and fair practices.

Future Directions

As the influencer marketing industry grows, regulations like these will shape how creators manage their digital presence. The IIGC will continue to advocate for a balanced approach that supports both tax compliance and privacy rights.

This article highlights the IIGC's perspective on the Income-tax Bill 2025, emphasizing the need for transparency and privacy safeguards in the digital age.

Any queries regarding this new tax law, please feel free to write at info@iigc.org. We are committed to providing support and guidance to our members as they navigate these changes.