The Death of Privacy: How the New Income Tax Bill Pushes India Towards a Surveillance State

A New Target: The Common Man’s Right to Privacy

The Modi government’s next major move appears to strike at the very heart of civil liberties—the right to privacy. The new Income Tax (I-T) Bill proposed by the Finance Ministry is not merely a financial compliance measure; it introduces a concerning shift toward digital surveillance of the common citizen. If passed, the bill will grant the Income Tax Department unprecedented access to private emails, social media accounts, cloud storage, and even encrypted personal messages—all in the name of monitoring financial transactions.

This opens a dangerous doorway: not only can the government scan your data, but they are also empowered to override passwords and digital locks to access what was once considered strictly personal.

Surveillance Without Accountability

The bill implies that no warrant or court order is necessary to scrutinize an individual’s digital life. Based on “suspicion” alone, your entire digital identity could be probed. Experts fear this law could be misused just like the Enforcement Directorate (ED)—once a neutral investigative agency, now often criticized for acting as a political tool. Privacy is becoming a myth, and the government is arming itself with tools that weaponize surveillance against dissenters.

What is Privacy in the Digital Age?

This brings us to a critical question: Does privacy even exist in today’s connected world? With every step forward in digitization, the common man is being reduced to a transparent mannequin, vulnerable to scrutiny. The new bill aims to monitor not just your income but also your thoughts, conversations, and interactions, effectively establishing control through fear.

Earlier, government scrutiny was limited to physical spaces like homes or offices. Now, it’s your digital footprint—emails, messages, online wallets, trading platforms, and social media—that is being monitored. The term “virtual digital space” in the bill is vague enough to encompass nearly all aspects of your online presence.

Surveys Reflect Public Concern

A Local Circles survey highlights growing public anxiety. It reveals that:

• 91% believe mobile apps leak their data.
  
• 73% say their emails are vulnerable.
  
• 52% feel PAN card use led to data leakage.
  
• 50% cite Aadhaar card usage as a major leak source.
  

This points toward a frightening reality—most Indians no longer trust the system with their data.

The Slippery Slope to Total Surveillance

When users shrug off privacy concerns with statements like “I have nothing to hide,” they fail to see the real threat: unprotected data leads to cybercrime, scams, and digital exploitation. The “Digital Arrest” scam, for example, has already affected thousands.

In 2023 alone:

• Over 700 cyber attacks were reported.
  
• BSNL leaked 300GB of sensitive data.
  
• Boat saw 7.5 million users’ data compromised.
  
• In 2024, 1.8TB of telecom user data was leaked and sold on the dark web for as little as $3,000.
  

The Rise of the Panopticon: Psychological Control Through Surveillance

This isn’t just about information theft—it’s about psychological manipulation. The government’s surveillance echoes the Panopticon Theory, where the mere possibility of being watched changes people’s behavior. You don’t need to be monitored 24/7; just the fear that you could be watched at any moment is enough to ensure conformity.

This isn’t fiction. From Meta-RayBan sunglasses with facial recognition to China’s facial tracking of even infants, the technology for total surveillance already exists. China, through its Cyberspace Administration, tracks and ranks citizens, punishing dissent and rewarding compliance. India, if not cautious, could walk the same path.

Pegasus: A Case Study in State Surveillance

We must not forget the Pegasus spyware scandal, where phones of journalists, activists, and opposition leaders were allegedly hacked. Even Amnesty International confirmed that governments, including India’s, were involved in this widespread snooping operation. What was once labelled a conspiracy is now a court matter in the U.S., bringing uncomfortable truths to light.

Are We Marching Toward Digital Slavery?

All signs indicate that privacy is no longer a right but a privilege granted selectively. With the new I-T bill, India could be entering a phase where citizens are digitally imprisoned, forced into submission not by bars, but by bytes.

The surveillance state is no longer an Orwellian prophecy—it’s a present reality. Technology is no longer just empowering the citizen; it is enabling the state to dominate. The government’s growing appetite for control may ultimately reduce individuals to nothing more than sheep in a fenced pasture, watched, tagged, and herded.

Conclusion: Privacy Is Freedom—And It’s Slipping Away

Privacy is more than a legal term—it’s psychological freedom. Without it, democracy becomes fragile. When the state knows everything about you, your rights become permissions, and your life becomes an open file on a government screen.

If we don’t question this now, we risk losing not just our privacy but our ability to think, speak, and live freely. The new I-T Bill is not just about taxes—it’s about power. And power, once given, is rarely returned.

(Mohd Ziyauallah Khan is a freelance content writer & editor based in Nagpur. He is also an activist and social entrepreneur, co-founder of the group TruthScape, a team of digital activists fighting disinformation on social media.)