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DigiYatra data to be used for catching tax evaders? | Fact Check

DigiYatra data to be used for catching tax evaders? Claims that DigiYatra data is being used to track tax evaders have sparked confusion. Here's what really happened. Look at how we have debunked these false claims.

By PTI News
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DigiYatra data to be used for catching tax evaders? | Fact Check | Courtesy: PTI News

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This story was originally published by PTI News, and republished by The Probe as part of the Shakti Collective.

DigiYatra Clarifies No Sharing of Data with Income Tax Dept

Multiple social media user recently cited a media report to claim that the Income Tax Department will tap Digi Yatra data to crack down on tax evaders. In its investigation, the PTI Fact Check Desk found that the claims made on social media were false. The report, which initially quoted sources to make the claim and lacked evidence, was later updated with Digi Yatra’s response, which refuted the claim as ‘false’. The Income Tax Department also rubbished the claim. Even the Ministry of Civil Aviation clarified that the media report was based on “unfounded and inaccurate claims”.  
 The Digi Yatra app uses Facial Recognition Technology (FRT) to provide contactless and seamless passenger processing at airport checkpoints, enhancing the travel experience.
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Claim

An X (formerly Twitter) user shared a post on December 30, claiming that the tax department will tap Digi Yatra data. The post carried the link to a report by The New Indian Express, whose headline read: “Tax department to tap Digi Yatra data to go after evaders.”

The caption of the post read: “Tax dept to tap Digi Yatra data. Misuse of data by the Income tax department . One more reason why people will hesitate to use Digi Yatra. People have no faith in this gov, as any gov department may start using Digi Yatra data.” 

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 Here is the link and archive link to the post, and below is a screenshot of the same:

Investigation

The Desk conducted a customised keyword search on Google, which led us to an X post by the Income Tax Department, shared on December 30, 2024, where it refuted the claim made in the news report. 
 
“It is seen that news articles have appeared stating that DigiYatra data will be used to crack down on tax evaders. In this connection it is clarified that as on date there is no such move by the @IncomeTaxIndiadepartment,” it read. 
 
Here is the link and archive link to the X post, and below is a screenshot of the same. 
The Ministry of Civil Aviation had also shared an X post on the same day, stating that the media report was based on “unfounded and inaccurate claims”.
 
“The Ministry of Civil Aviation hereby clarifies that the recent media report concerning Digi Yatra is based on unfounded and inaccurate claims. 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 Digi Yatra app, the data is deleted entirely. Additionally, airport systems automatically purge passenger data within 24 hours of the flight's departure. It is also important to note that Digi Yatra is designed solely for domestic passengers and does not apply to international travelers,” the post read. 
 
Here is the link to the post, and below is a screenshot of the same. 
DigiYatra CEO Suresh Khadakabhavi also responded to claims made in The New Indian Express report and said that “no central storage of biometric, or personal data stays on users’ phones, and facial authentication is decentralized.”
 
Here is the link to an X post by DigiYatra, quoting its CEO, and below is a screenshot of the same:
In the next part of investigation, the Desk found the LinkedIn post by Khadakabhavi, whose screenshot was carried in the X post by DigiYatra.   
 
Here is the link to the LinkedIn post and below is a screenshot of the same. 
“These are unfounded claims by The NEW Indian Express about the misuse of Digi Yatra data based on unknown sources. It is crucial to clarify that Digi Yatra operates without storing any Personally Identifiable Information (PII) in any central repository. This ensures there is no database to breach, share, lose, or leak, safeguarding user privacy,” read a section of the post.
 
“The claim that “financial records of frequent international travelers could be subjected to scrutiny” is also incorrect. DigiYatra is not yet available for international travel. Furthermore, with no central repository, scrutiny and corelation of records is not feasible. Digi Yatra’s Privacy-Preserving ecosystem aligns with the Self-Sovereign Identity (SSI) framework, ensuring unmatched data security, privacy and global scalability,” read another section of the post. 
 
In the next part of investigation, the Desk read the report by The New Indian Express. While it was updated with the response by Digi Yatra in the later part, its heading and subheading still made the same claim
 
Here is the link and archive link to the report and below is a screenshot of the same: 
As can be seen in the two screenshots below, the article made the claims based on “sources”. It also mentioned that “questions sent to the tax department and Digi Yatra on the issue remained unanswered till the time of filing of this report.” 
Towards the end, the report mentioned the response by Digi Yatra. Below is a screenshot of the same: 
However, while searching for more details we found a PDF with the details of the Digi Yatra personal data guidlines released by the Ministry of Civil Aviation. 
 
Here is the link and below is the screenshot of the same. 
 
Subsequently, the Desk concluded that the claims made in the media report lacked evidence, and were refuted by the concerned authorities. 
 
Disclaimer: The copy has been updated to add the personal data guidelines PDF issued by the Ministry of Civil Aviation regarding the Digi Yatra Biometric boarding system and personal data guidelines

CLAIM

The Income Tax Department will tap DigiYatra data to crack down on tax evaders.

FACT

The claim was refuted by DigiYatra, Income Tax Department and Ministry of Civil Aviation.

CONCLUSION

Multiple social media users cited a media report to claim that the Income Tax Department will tap the Digi Yatra data to tighten its noose around tax evaders. In its investigation, the Desk found that the ‘source-based’ media report lacked evidence to back the claims, which have also been categorically rejected by DigiYatra, Income Tax Department and the Ministry of Civil Aviation.

This Fact Check story was originally published by PTI News, as part of the Shakti Collective. Except for the headline/excerpt/opening introduction para this story has not been edited by The Probe staff.