There have been disturbing press reports and articles on the Information Technology (Amendment) Act, 2008. These accounts broadly wallow about the increase in the police powers of the state. They contend that the amendment grants legal sanction to online surveillance inexorably whittling down internet privacy. This article seeks to examine this prevalent notion. It discovers that legal provisions for online surveillance, monitoring and identification of data have been inserted in a narrow and defined class of circumstances governed by tenuous procedures. At first glance it may seem that these procedures and safeguards by themselves increase the right to privacy. However, on a deeper study it is revealed that they are found wanting due to the nature of internet communications. The article takes a comprehensive look at the state of online privacy in India arising out of the Information Technology Act, 2000.