Concerned about frauds in income tax refunds and leakage of information, the Central Board of Direct Taxes has taken a stern view of outsourcing of data entry functions.

“Large-scale outsourcing of data entry functions in the income tax department poses a risk of refund frauds and leakage of confidential data,” the CBDT has said in a recent letter to its field offices, adding that often the outsourced data entry operators also have access to sensitive information including login credentials, passwords and RSA tokens.

Unauthorised access

It has asked field offices to ensure all outsourced data entry operators are rotated every two years saying “overstay and continuous placement affords scope for indulging in corrupt activities and developing vested interests which is not in the interest of the Department.”

It said: “The exercise of rotation of outsourced data entry staff may be completed by January 31of every year.”

The CBDT missive has also highlighted that in some cases, unauthorised people have accessed income tax offices, office records and computer systems.

“Unauthorised personnel should not be permitted to have access to any office, office record or computer system of the Department,” it stressed.

Income tax offices in the past have witnessed huge frauds in refund claims, which have at times run into crores of rupees.

comment COMMENT NOW