On Monday, February 9, 2026, the Lok Sabha addressed Unstarred Question No. 1580 regarding the new Section 247 of the Income Tax Act. Shri Giridhari Yadav, Shri Dinesh Chandra Yadav, and Shri Ramprit Mandal inquired about the introduction of Section 247, effective from April 1, 2026. Specifically, they asked if the new section has created confusion among taxpayers by granting income tax officials unlimited power to access digital space using Artificial Intelligence (AI). The Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary) responded that Section 247 of the Income-tax Act, 2025, concerning search and seizure provisions, aligns with section 132 of the Income-tax Act, 1961. It was clarified that the power to override access codes to computer systems was already available under section 132 of the Income-tax Act, 1961, with specific enablement made in the Act considering digital space evolution and rapid advances in technology. There is no mention of Artificial Intelligence in the provision of section 247, and the provisions of section 247 have not assigned any new power to the income-tax authorities.
Key Entities Referenced
Income-tax Act, 2025: A section of the Income-tax Act, likely introduced or amended in 2025, regarding search and seizure provisions.
Income-tax Act, 1961: Reference legislation pertaining to income tax.
Section 247 of the Income Tax Act: The new section in question, concerning access to digital space and the power of income tax officials.
Ministry of Finance: The government ministry responsible for administering financial matters.
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.
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