Will Digiyatra data be used to crack down on tax evaders? taxmen clarify

DigiYatra is a digital initiative launched in India to enhance the travel experience at airports through the use of biometric identification

The Income Tax Department has clarified that it will not use data collected through the DigiYatra initiative to target tax evaders. This statement comes in response to concerns that the government might leverage the biometric and travel information gathered from passengers using the digital platform for tax compliance measures.

 

A report in The New Indian Express had earlier claimed that the tax department had obtained all passenger data from the DigiYatra app, which was being used to identify inconsistencies in declared income for tax purposes. It was further reported that notices based on this data would be sent out in 2025.

 

DigiYatra, launched to enhance the travel experience at Indian airports, allows passengers to use biometric identification for smoother check-ins and boarding processes. However, its integration with the tax system raised eyebrows, leading to speculation about potential privacy concerns and the misuse of personal data.

 

In a recent communication, the Income Tax Department emphasized that the information collected through DigiYatra is intended solely for improving the travel experience and is not connected to tax assessment or enforcement. The department reassured taxpayers that their personal information remains confidential and will not be used to monitor or evaluate individual tax liabilities.

 

“It is seen that news articles have appeared stating that Digiyatra data will be used to crack down on tax evaders. In this connection it is clarified that as on date there is no such move by the @IncomeTaxIndia department,” said the Income Tax Department of India in an official social media post on the platform X.

 

The CEO of DigiYatra Foundation Suresh Khadakbhavi too denied the media report terming it as “unfounded claims based on unknown sources."

 

“It is crucial to clarify that DigiYatra operates without storing any PII in any central repository. This ensures there is no database to breach, share, lose, or leak, safeguarding user privacy, Khadakbhavi said in a post on LinkedIn.

 

The Ministry of Civil Aviation too has refuted claims that Digi Yatra passenger data is being shared with Indian tax authorities for tracking tax evaders. The ministry clarified that Digi Yatra operates on a self-sovereign identity (SSI) model, where personally identifiable information (PII) and travel credentials are stored only on the user's device and not in a central repository. Further, the ministry said airport systems automatically purge passenger data within 24 hours of the flight’s departure.

 

"There is no sharing of Digi Yatra passengers data with Indian tax authorities. The Digi Yatra app follows the Self-Sovereign Identity (SSI) model, where Personally Identifiable Information (PII) and travel credentials are stored exclusively on the user’s device, not on any central repository. Furthermore, if a user uninstalls the DigiYatra app, the data is deleted entirely," the ministry wrote in a post on X.