CBDT Partners with Bharti Airtel for Major Income Tax Digital Infrastructure Overhaul

The Central Board of Direct Taxes (CBDT) announced on Friday that it has awarded a network project to Bharti-Airtel Ltd. This project aims to enhance the digital infrastructure of the income tax department.

While the contract’s value wasn’t disclosed, Bharti-Airtel was chosen through an open tender process.

Called Taxnet 2.0, this project will see Bharti-Airtel providing network connectivity, facility management services, and video conferencing services. The goal is to improve the department’s network system, offering better security, reliability, and a seamless user experience.

CBDT stated that the project would use technology to protect sensitive data and ensure privacy while boosting the reliability of tax services for both citizens and businesses.

In 2019, CBDT hired Infosys Ltd. to develop a new tax return filing portal, which is now operational. Similarly, the Taxnet 2.0 project will create a strong network platform for the income tax department, further advancing the government’s effort to modernize digital infrastructure and deliver high-quality public services.

This new connectivity project is expected to enhance the tax department’s faceless assessment and appeals process, crucial for communication between the tax authority, professionals, and taxpayers. The department has been using technology to automate various processes to improve efficiency and eliminate any subjectivity in interactions between officials and taxpayers.

With improved IT capabilities, the department can capture and analyze vast amounts of data, enhancing its oversight of economic transactions. Recently, direct tax collections have shown significant growth. Between April 1 and July 11, the Centre’s direct tax collections reached ₹5.74 trillion, reflecting a 20% annual growth, according to CBDT data.