Tax evasion: The Ministry of Civil Aviation has refuted claims that Digi Yatra passenger data is being shared with Indian tax authorities for tracking tax evaders. 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.
In response, 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.
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“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.
The Income Tax Department clarified that they are not utilising Digi Yatra data for monitoring tax evaders. In appreciation of this clarification, the official X handle of Digi Yatra (formerly Twitter) expressed gratitude to the Income Tax Department for debunking the “false claims”.
Digi Yatra, established in 2022, is a non-profit endeavor backed by the Ministry of Civil Aviation. Utilizing Facial Recognition Technology (FRT), the platform streamlines passenger processing at airport security checkpoints, creating a touchless and efficient travel experience. Presently, it caters exclusively to domestic travelers and does not extend to international passengers.
The application collects biometric information, travel records, and identification documents to streamline airport procedures. Nevertheless, a recent report indicates that the IT Department has commenced cross-referencing Digi Yatra’s passenger data with income tax records to identify inconsistencies, specifically targeting affluent frequent fliers whose reported earnings do not align with their expenditures.
The article indicated that the tax department’s initial focus would be on individuals who fail to file tax returns, before shifting attention to those who inaccurately report their income. It mentioned that data from both domestic and international travelers is being monitored, with individuals who engage in frequent or high-value travel, especially international trips, potentially drawing scrutiny if their reported income does not align with their expenditures.
In a recent post on X, DigiYatra CEO Suresh Khadakabhavi emphasized that there is no central storage of biometric or personal data. The data remains on users’ phones, and facial authentication is decentralised. With over 9 million users and 42 million secure journeys, privacy continues to be a top priority for DigiYatra.
“No central storage of biometric or personal data exists. Data stays on users’ phones, and facial authentication is decentralized. 9M+ users & 42M+ secure journeys. Privacy remains non-negotiable.”