The Central Board of Direct Taxes (CBDT) has announced a significant upgrade to the Income Tax Department’s digital infrastructure with the introduction of Taxnet 2.0. The overhaul comes in response to the growing number of taxpayers and the increasing load on IT infrastructure of the tax body.
Taxnet 2.0 is designed to significantly improve the ITD’s operations by providing robust dual connectivity using software-defined networks for both wide area networks (WAN) and secure local area networks (LAN).
According to a senior official, the initiative will enhance the department’s ability to manage, process, monitor, and account for direct taxes more efficiently. The improvements in network connectivity are expected to lead to better performance in various ITD functions, including facility management and secure video conferencing services.
CBDT bets on Bharti Airtel
The Taxnet 2.0 project has been awarded to Bharti Airtel. The telecom major will be responsible for providing network connectivity, facility management, and video conferencing services to the Income Tax Department (ITD). This partnership follows an open tender process and is expected to leverage Airtel’s expertise in delivering reliable telecommunication solutions.
Taxnet 2.0 promises several key improvements over its predecessor – Taxnet 1.0. The new system will feature advanced technology aimed at enhancing security, ensuring data privacy, and providing seamless connectivity. These upgrades are crucial for protecting sensitive taxpayer information and ensuring the reliability of the tax filing system.
Key features of Taxnet 2.0 include:
Enhanced Security: Utilisation of advanced technology to protect sensitive data from unauthorised access and breaches.
Higher Reliability: Consistent and dependable service to users across the country, minimising downtime and service interruptions.
Seamless Connectivity: Uninterrupted access to the e-filing portal and other online services, ensuring a smooth user experience.
CBDT has awarded the Taxnet 2.0 project to M/s Bharti-Airtel Ltd (@airtelindia) for providing network connectivity, facility management services and video conferencing services to the Income Tax Department.
Key features of Taxnet 2.0 project include:
👉Enhanced security by… pic.twitter.com/pETILIxgg6
— Income Tax India (@IncomeTaxIndia) July 19, 2024
Implementation and Future Benefits
While Taxnet 2.0 is unlikely to resolve issues for those filing returns this July, it is expected to bring significant improvements in future tax seasons. The enhanced infrastructure will improve the performance of the overall systems both for citizen and CBDT’s internal stakeholders.
The implementation of the project also aligns with the Prime Minister Narendra Modi government’s broader objective of modernising digital infrastructure and enhancing public service delivery across the country under the Digital India programme.

