Frequent users of the Digi Yatra app who don’t file income tax returns may soon face scrutiny from the tax department. Sources reveal that the department has accessed passenger data from the Digi Yatra app and is reconciling it with tax filings to detect discrepancies. Notices to non-compliant individuals are expected to be issued in 2025. The app, a civil aviation ministry initiative, uses facial recognition technology to streamline airport access by storing passenger ID, biometrics, and flight details. While its use is optional, the tax department is leveraging this data to identify non-filers and individuals under-reporting their income.
The department plans to focus initially on non-filers before targeting those whose reported earnings do not align with their high-frequency or international travel patterns. The Digi Yatra data, considered clean and reliable, allows the government to cross-reference travel activity with tax filings, providing a robust tool for identifying tax evasion. Tax experts highlight that this data offers a more precise alternative to past attempts to gather travel information through airline loyalty programs, which faced privacy-related challenges. Experts suggest that, with appropriate privacy safeguards, the initiative could enhance transparency and accountability.
Privacy concerns have been raised by air travellers regarding the app’s data collection practices. Authorities have assured that passenger data is stored locally on users’ devices and not in a central repository. Despite these reassurances, questions sent to the tax department and Digi Yatra regarding the initiative remain unanswered. Sources indicate that financial records of frequent international travellers may be scrutinized for potential income suppression in their tax returns, placing globetrotters under increased surveillance.
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