CBDT To Roll Out Cyber Forensics Policy To Combat Tax Evasion, Fraud—Profit Exclusive

In its internal communique of Sep 26, the apex body outlined the operational framework of the policy and asked Directorate General Income-tax or DGITs to set up --Digital Intelligence and Analytics Labs or DIALs across the country in next 60 days.

DGITs are senior officials of Income-tax department who are responsible for probing violation of India' tax laws..

Explaining the role of DIAL, the direct tax body said that these labs would help in gathering intelligence from digital footprints such as emails, social networking, and financial records of companies and individuals, more efficiently.

Similarly, digital intelligence in form of banking data, property transaction data, GST data, MCA data are valuable sources of gathering actionable intelligence could be better analysed, under the policy, CBDT internal communique.

NDTV Profit has reviewed the internal communique.

Experts said that the move is a further step towards widening the tax base by increasing the possibility of early detection of tax evasion schemes like raising of false invoices or making dubious payments to claim deductions etc.

"However, as the digital footprint of Govt keeps expanding, adequate care should be taken to ensure strict privacy of personal data of citizens and avoid misuse by miscreants. Adequate digital guardrails should be put in place simultaneously for this purpose, said Sudhir Kapadia, EY Senior Advisor.

The CBDT in the letter emphasized that the new policy would ensure confidentiality and integrity of the sensitive data of individual and companies by equipping the DIALs with access control.

It said that current system faces several challenges in managing and analysing digital evidence while maintaining its integrity due to large volume and complexity of the data. It said that rapid technological advancement, lack of technical expertise and geographical spread also act as hindrance.

“The said policy of CBDT aims to address these issues by providing state-of-the-art digital forensics and analytics infrastructure for Investigation across India.

“It aims to provide a cohesive framework for the acquisition, preservation, and analysis of electronic/cyber data, while ensuring its integrity and admissibility in legal proceedings, it said.

Besides, it will ensure that digital evidence remains unaltered and legally admissible throughout the investigation process, maintaining its evidentiary value for building strong cases.

Under the policy, the department would provide intensive training programs for inspectors and other personnel to handle routine data analysis tasks efficiently, covering the use of forensic tools and proficiency in general accounting software.

Further, to make best use of DIAL, the tax department will do partnerships and collaborations with expert institutions and organizations to leverage their expertise and resources, it said.