Hyderabad: The Central Board of Direct Taxes (CBDT) has established a digital intelligence and analytics lab (DIAL) in Hyderabad to enhance data analysis and tackle tax evasion. This is the first such facility outside Delhi and Mumbai. Located in Ayakar Bhavan at Basheerbagh, the lab became operational recently and will play a key role in analysing vast digital data, including social media activity, to detect financial irregularities.
This initiative is part of the CBDT’s Cyber Forensics Policy, which seeks to combat tax evasion and prevent cyber and financial fraud. Under this policy, DIALs are being set up across the country to investigate digital footprints, such as emails, financial records, and online activities of individuals and companies.
IT investigators will analyse data from property transactions, the ministry of corporate affairs, the goods and services tax department, and banks to uncover patterns of tax evasion. Social media posts detailing foreign trips, lavish weddings, expensive homes, and other lifestyle indicators will also be monitored.
The lab’s implementation will be done in phases, and it is equipped with advanced security measures like restricted access and controlled data storage. Investigators must access the server through their systems rather than physically in the lab.
Secure data handling
A key focus of the Hyderabad lab is the secure storage and analysis of digital evidence collected during tax investigations. Previously, large data sets stored on devices seized during searches were kept in investigators’ rooms. Now, all seized data will be securely stored within the lab to prevent tampering or unauthorised access.
Access to the lab is highly restricted, with stringent entry and exit protocols in place. The income tax investigation department has hired data mining experts to analyse digital evidence, detect tax evasion patterns, and extract crucial clues for ongoing investigations. Advanced forensic tools and analytical techniques will be used to sift through terabytes of data.
In the future, smaller labs will be set up in Visakhapatnam and Vijayawada.