NEW DELHI: If you are a frequent user of Digi Yatra app but don’t file income tax returns, don’t be surprised if you get a notice from the tax department.
According to sources, the tax department has accessed the entire passenger data captured on the Digi Yatra app, and the same is being reconciled with tax filings to check for discrepancies in the declared income. The tax department would start issuing notices in 2025 based on the Digi Yatra data, said sources.
Digi Yatra app is a civil aviation ministry-led initiative to make air traveller’s journey seamless and paperless. It uses facial recognition technology, and collects passengers ID, biometrics, and details of air tickets to give easy access at airports. It is, however, not mandatory for fliers to download or use the app.
According to sources, the tax department will first go after those who don’t file tax returns, and then target those who under-report their income to avoid paying taxes. The department is perusing the data of both international and domestic air travellers. Frequent or high-value travel, particularly international trips, could flag individuals whose reported earnings do not justify such expenditures, prompting further scrutiny.
“Data provided by Digi Yatra is inherently clean, reliable, and verifiable, making it a robust source for government use in tax administration. Once integrated and reconciled with income tax filings, it can effectively identify non-filers, placing them at the forefront of scrutiny. Subsequently, taxpayers engaging in income suppression or under-reporting could also be systematically targeted,” said a source.
According to tax experts, Digi Yatra data holds immense potential as an alternative to the government’s earlier attempts to gather travel data through loyalty programmes of air travel companies—a move constrained by privacy concerns.
“By leveraging such data, authorities can achieve greater transparency and precision in tracking high-risk taxpayers, provided that appropriate safeguards for data privacy and proportionality are in place,” says Rajat Mohan, senior partner, AMRG & Associates.
Questions sent to the tax department and Digi Yatra on the issue remained unanswered till the time of filing of this report.
It must be recalled that air travellers have raised privacy concerns over the collection data on the app. However, the authorities have maintained that data is not stored in any central repository, and that it is stored locally in the phone of the passenger.
Meanwhile, responding to the story after it got published on Monday, Digi Yatra has termed the claims made in this story as ‘False’.
“Digi Yatra prioritizes data security and privacy. The 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. If the app is uninstalled, the data is deleted entirely. Additionally, airport systems purge data within 24 hours of flight departure,” said the response from Digi Yatra.
It further said that as part of its commitment to privacy, safety, and security, it does not store any personal data. “While this limits our ability to provide customized or personalized services like other brands, it ensures maximum user privacy. Our "d-KYC" (Don’t Know Your Customer) campaign underscores this commitment, clearly communicating that we don’t collect or retain user information. There is no mechanism for data sharing with third parties, and no MoU exists between Digi Yatra Foundation and the Income Tax Department,” said Digi Yatra in a response to the TNIE story.