The new Income Tax Act, 2025 will usher in a more rule-driven and technology-driven ecosystem for direct tax administration, with artificial intelligence (AI) set to support enforcement and taxpayer services, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said on Friday.
The Income Tax Department is increasingly relying on artificial intelligence to monitor taxpayer behaviour—ranging from tracking online activity on its portal to identifying repeated deduction claims and high-value transactions, according to Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal.
Through the use of various artificial intelligence (AI) tools, the Income Tax Department has over the last four years encouraged more than one crore taxpayers to voluntarily update tax returns leading to ₹11,000 crore of additional tax revenue for the government, Central Board of Direct Taxes Chairman Ravi Agarwal said in an interview.
The Income Tax Department has stepped up its monitoring and compliance efforts by harnessing the power of artificial intelligence (AI) to track online taxpayer behaviour and identify inconsistencies in returns, reports Indian Express. According to Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal, the department is analysing online activity, financial transactions, and return-filing patterns to nudge taxpayers towards better compliance.
