I-T Dept can access social media accounts: What it means for marketers and advertisers

Income Tax Bill, 2025, amendment has raised concerns across industries, and disruption in digital advertising and influencer marketing. The new law grants tax authorities access to social media accounts, emails, and cloud storage for scrutiny in cases of suspected tax evasion.

For influencers and content creators, many of whom operate through informal agreements and varied payment structures, the expanded search and seizure powers could bring stricter financial oversight. Until now, influencer marketing earnings—often comprising brand collaborations, affiliate marketing, and sponsorship deals—have remained in a grey area regarding taxation. The new provisions could lead to greater transparency, requiring influencers to disclose their income more accurately.

Brands, on the other hand, could face increased scrutiny over their digital ad spending. Marketing budgets that are allocated to influencer campaigns, paid promotions, and performance marketing could be subject to closer examination. Companies that use offshore payments or unconventional financial models to pay digital creators may need to ensure full compliance with tax laws.

Ad Agencies and Brand Campaigns Under the Radar

Advertising agencies that facilitate brand collaborations with influencers could also be impacted. The new rules could lead to stricter documentation requirements, compelling agencies to maintain detailed financial records of every campaign. Payments to influencers—especially those received via direct bank transfers, international transactions, or cryptocurrency—might come under tax scrutiny, prompting ad agencies to revamp their bookkeeping and compliance strategies.

Another key aspect is the potential monitoring of ad spending on digital platforms like Facebook, Instagram, YouTube, and TikTok. Since tax officers can now access virtual digital spaces, any undisclosed or unreported ad expenses might raise red flags. This could drive brands to formalize their marketing expenditures more rigorously, ensuring that all payments align with declared revenues and expenses.

Privacy Concerns and Industry Reactions

The advertising and marketing industry has expressed concerns about the potential privacy implications of the bill. Some experts argue that while tax compliance is essential, allowing authorities to access personal emails and social media accounts could set a precedent for overreach.

Industry leaders are calling for clear regulations and safeguards to prevent misuse of these powers. Many companies are also urging the government to provide clarity on the implementation framework, ensuring that businesses and individual creators can prepare for the new compliance landscape