Overhauled software system on cards to guard individuals’ tax data 

Trial runs are currently on; new system to protect millions of tax payers’ confidential financial data from falling into wrong hands The Income Tax (I-T) department is overhauling its technology backbone and software system to protect individual information, plug potential leakages, and guard tax payers' confidential data through a highly encrypted security architecture. Trial runs are currently on before the new system, which will store and process several terabytes of data, is rolled out fully. The decision to revamp the I-T department's data handling system has been taken to protect "confidential financial data filed by millions of tax payers from falling into wrong hands," a source, who did not wish to be identified, "The new module is undergoing trials at the moment. The new software would secure individual assessees' data," the source said. There have been instances where third parties have been able to secure individual tax information, raising questions about weaknesses in the I-T department's data protection system that may compromise personal and confidential information. The new tech backbone will also be compatible with "Project Insight", launched recently to enable "voluntary compliance and deter non- compliance," to impart confidence that all eligible persons pay appropriate tax and to "promote fair and judicious tax administration". 

An Income Tax Transaction Analysis Centre (INTRAC) that will act the data integration, processing, data quality monitoring, warehousing, analytics, web and text mining, alert generation, compliance management, enterprise reporting and research support, will also be launched. Within INTRAC, a new Compliance Management Central Processing Centre (CMCPC) will also be set up under this project for collating data acquired on tax payers and non-filers adopting a "non-intrusive information driven approach". The CMCPC, which will be algorithm driven, will carry out preliminary verification, issue notices and follow-up on notices. "Project Insight" will be rolled out in a phased manner from May 2017. A fully secure data system has also become necessary after the government made Aadhaar compulsory for filing income tax returns or applying for a permanent account number (PAN) from 2017-18. The move to seed PAN with the unique identity number Aadhaar that contains citizens’ biometric and other personal details have triggered criticism about the possible data leakage and intrusion of individual privacy. 

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