In response to an unstarred question in the Lok Sabha regarding the introduction of Section 247 of the Income-tax Act, 2025, effective from 1 April 2026, the Ministry of Finance clarified concerns about alleged confusion and expanded powers of income-tax authorities. The question suggested that the new provision grants unlimited authority to tax officials to access taxpayers’ digital spaces using Artificial Intelligence (AI). The Minister of State for Finance explained that Section 247, which deals with search and seizure, is aligned with the existing provisions of Section 132 of the Income-tax Act, 1961. The power to override access codes to computer systems already existed under the earlier law, and the new section merely provides explicit enablement in light of the evolution of digital technology. Importantly, the Government clarified that Section 247 does not mention AI, nor does it confer any new or additional powers on income-tax authorities beyond what was already available under the previous legal framework.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 1580
TO BE ANSWERED ON MONDAY, FEBRUARY 9, 2026/ MAGHA 20, 1947 (SAKA)
NEW SECTION 247 OF INCOME TAX
1580. SHRI GIRIDHARI YADAV:
SHRI DINESH CHANDRA YADAV:
SHRI RAMPRIT MANDAL:
Will the Minister of FINANCE be pleased to state:
(a) whether it is a fact that the introduction of new Section 247 in the Income Tax Act to be effective from 1st April, 2026 has created a lot of confusion among taxpayers as it gives unlimited power to income tax officials to access digital space using Artificial Intelligence (AI); and
(a) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) Section 247 of the Income-tax Act, 2025(‘the Act’) relating to search and seizure provisions are in line with section 132 of the provisions of Income-tax Act, 1961. Even though power to override access code to any computer system was already available under section 132 of the Income-tax Act, 1961, specific enablement has been made for the same in the Act considering the evolution of digital space and rapid advances in technology.
Further, there is no mention of Artificial Intelligence in the provision of section 247 or any related provision
Therefore, the provisions of section 247 of the Act have not assigned any new power to the income-tax authorities.
