Digi Yatra data is set to become a critical tool for the tax department as it plans to issue notices to potential tax evaders in 2025. This initiative aims to reconcile passenger data captured through the Digi Yatra app with individual tax filings to identify discrepancies in declared income. Sources confirm that this move will focus on both non-filers and individuals underreporting their income.
How Digi Yatra Data Will Be Used?
Digi Yatra, a civil aviation ministry initiative, streamlines air travel using facial recognition technology. The app collects passenger IDs, biometrics, and air ticket details to provide seamless airport access. While its use is optional, the tax department plans to utilize data from the app to target frequent or high-value travelers, especially those whose reported incomes do not justify their travel expenditures.
Initial efforts will focus on identifying individuals who do not file tax returns, followed by taxpayers who underreport their income. A source noted, “Data provided by Digi Yatra is inherently clean, reliable, and verifiable, making it a robust tool for tax administration.”
From Loyalty Program Data To Digi Yatra
The government previously attempted to use airline loyalty program data to track high-risk taxpayers, but privacy concerns hindered its success. Digi Yatra data offers a better alternative due to its accuracy and reliability.
Tax experts have praised this shift. Rajat Mohan, senior partner at AMRG & Associates, explained, “Using Digi Yatra data enables authorities to improve transparency and precision in identifying tax evasion, provided robust privacy safeguards are upheld.”
By reconciling it’s data with income tax filings, authorities aim to flag discrepancies effectively, especially among those engaging in luxury travel without corresponding financial declarations.
Privacy Concerns And Digi Yatra’s Clarifications
The collection of passenger data by the application has raised privacy concerns among users. Critics argue that such sensitive data if misused, could infringe on personal privacy. However, The application’s officials have repeatedly emphasized that their system prioritizes data security and privacy.
Under the Self-Sovereign Identity (SSI) model, personal data is stored locally on the user’s device and is not retained in any central repository. Once the app is uninstalled, all stored data is deleted. Additionally, airport systems automatically purge passenger data within 24 hours of flight departure.
Responding to claims of data sharing with the tax department, Digi Yatra categorically denied any such arrangements. In a statement, the organization clarified, “There is no mechanism for data sharing with third parties, nor any memorandum of understanding with the Income Tax Department.”
Balancing Transparency And Privacy
Digi Yatra’s “d-KYC” (Don’t Know Your Customer) campaign reinforces its commitment to privacy. While this limits personalized services, it ensures maximum user data protection.
For the tax department, reconciling the application’s data with income tax filings provides an innovative way to identify non-compliance. However, balancing transparency and accountability with robust privacy measures will be crucial to maintaining public trust.
As India’s digital economy grows, leveraging technology for better governance, including tax compliance, must also address privacy concerns effectively. This ensures that technological advancements benefit both governance and individual rights.