Tax Authority would use Digi Yatra data to hunt down Evaders

If you frequently use the Digi Yatra app but do not file income tax returns, you should expect to receive a notice from the tax authorities.

According to reports, the tax department has accessed all passenger data captured on the Digi Yatra app and is reconciling it with tax filings to check for inconsistencies in declared income. The tax department plans to begin issuing notices in 2025 based on Digi Yatra data, according to insiders.

The Digi Yatra app is a civil aviation ministry-led initiative aimed at making air travel journey smooth and paperless. It employs facial recognition technology to capture passengers’ IDs, biometrics, and plane ticket details for convenient access at airports. Although, it is not necessary for fliers to download or use the app.

Sources said, the tax department will initially pursue individuals who do not file tax returns, followed by those who underreport their income to avoid paying taxes. The department is reviewing data from both foreign and domestic flight travellers. Frequent or high-value travel, particularly international journeys, may signal persons whose reported earnings may not justify such expenses, requiring additional investigation.

“The data offered by Digi Yatra is naturally clean, trustworthy, and verifiable, making it an excellent source for government usage in tax administration. Once integrated and reconciled with income tax files, it can efficiently detect non-filers, putting them under close scrutiny. As a result, taxpayers who engage in income suppression or under-reporting may be targeted systematically,” stated a source.

According to tax experts, Digi Yatra data has enormous potential as an alternative to the government’s previous attempts to collect travel data through air travel companies’ loyalty programmes—a plan impeded by privacy issues.

Questions submitted to the tax department and Digi Yatra about the situation remained unanswered as of the time of reporting this report.

It should be noted that air travellers have expressed privacy concerns about the app’s data collection practices. However, officials have maintained that data is not saved in a central repository and is instead stored locally on the passenger’s phone.

Meanwhile, Digi Yatra responded to the story after it was published on Monday, calling the claims made in it ‘false’.

“Digi Yatra prioritises data security and privacy. The software uses the Self-Sovereign Identity (SSI) architecture, which means that Personally Identifiable Information (PII) and travel credentials are only maintained on the user’s smartphone, not in a central repository. If the app is removed, all data is gone. Additionally, airport systems erase data within 24 hours of flight departure,” according to Digi Yatra.