The group headed by retired Justice A P Shah, in its report, suggested that publication of personal data for artistic and journalistic purposes need not be considered as infringement of privacy under the proposed legislation.
Besides, the group suggested that government could exempt application of privacy law in case of national security, public order, disclosure in public interest, prevention, detention and prosecution in criminal offences.
Referring to sting operation or act of whistle blowing, the report said a "public interest test" would be needed to determine whether personal information should have been disclosed along with all other material gathered.
Some restrictions, it said, would be necessary as information about public figures, elites and ordinary persons enters the public domain during the course of sting operation or act of whistle blowing.
The group under Shah, a former Chief Justice of Delhi High Court, was set up by the Planning Commission in September 2011 to identify the privacy issues and prepare a report to facilitate authoring of the Privacy bill.