Centre declares Income Tax Directorate’s Computer Resources as Protected Systems under IT Act, 2000 [Read Notification]

The Ministry of Finance has issued Notification No. S.O. 498(E) dated January 28, 2025, announcing the designation of critical Income Tax-related computer systems as ‘Protected Systems’ under Section 70 of the Information Technology Act, 2000. The notification came into force on the date of its publication in the Official Gazette (January 28, 2025).

According to the notification, Important digital infrastructure handling TDS reconciliation, e-filing, centralized tax processing, PAN and TAN databases, and tax compliance insights have been declared protected systems, making unauthorized access or tampering a criminal offense under the IT Act.

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Key Systems Declared as Protected

(a) Tax Deducted at Source (TDS) Related Systems

• TRACES Web Portal Infrastructure: A platform used for TDS reconciliation, analysis, and corrections.
• Assessing Officers Web Portal Infrastructure: A digital interface used by tax officials for TDS-related assessments.
• Centralized Processing Cell (TDS) Application & Database: A back-end system managing automated TDS processing.
• Records Management Database for Centralized Processing Cell (TDS): A secured database storing TDS-related records.

(b) e-Filing & Centralized Processing Centre (CPC) Systems

• e-Filing Front Office Web Portal: The official government portal where taxpayers file income tax returns online.
• Integrated e-Filing & CPC Application & Database: A system that integrates e-filing data with CPC for automated tax return processing.
• Back Office Web Portal Infrastructure: Used by tax authorities for internal processing of tax returns.
• Tax Information Network (TIN) Master Database: A national database containing tax-related data for better compliance tracking.

(c) Income Tax Business Application (ITBA) & PAN/TAN Databases

• ITBA & Its Database: The core system used by the Income Tax Department to manage taxpayer information.
• Permanent Account Number (PAN) Master Database: The official repository of all PAN records in India.
• Tax Deduction and Collection Account Number (TAN) Master Database: A database tracking tax deductions by businesses and institutions.

(d) Insight, Reporting, Compliance & Annual Information System (AIS)

• Insight, Reporting & Compliance System: A data analytics-driven platform for tracking tax compliance.
• Annual Information System (AIS) Web Portals: A portal where taxpayers can view detailed financial transactions reported to the tax department.
• Project Insight Database: A high-tech system used for data analytics and fraud detection in tax matters.

(B) Authorized Personnel with Role-Based Access

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Access to these protected systems is strictly limited to authorized individuals, ensuring data security. The following categories of personnel are granted access:

(a) Designated Employees of the Income Tax Department

• Any official from the Directorate of Income Tax (Systems) under the Central Board of Direct Taxes (CBDT).
• Must have written authorization to access these systems.

(b) Contractual Service Providers and Third-Party Vendors

• Employees of outsourced service providers or third-party vendors managing IT infrastructure.
• Must have written authorization from the Directorate of Income Tax (Systems), CBDT.
• Access is granted on a need basis only.

(c) Other Government-Approved Stakeholders

• Consultants, regulators, auditors, government officials, or tax stakeholders.
• Access is granted on a case-by-case basis through written authorization from the Directorate of Income Tax (Systems), CBDT.

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