AI and Machine Learning to Handle Tax Assessments

India’s tax assessment system is, now, stepping into a new phase where advanced technologies such as artificial intelligence (AI) and machine learning (ML) will be taking over. The initiative takes the country one step ahead towards realising the ‘Digital India’ dream.

If the initiative comes true as per the plan, India will be the first countries in the world to implement technology on a large scale in public tax assessment. The Finance Minister has made an announcement stating that the technology-driver tax assessment system will be implemented from 8 October 2019. 

The idea of adopting technology for the assessment of taxes is to ensure absolute transparency and accuracy in the system. The objective of the faceless assessment is that tax officers are corrupt; there are many cases where tax officers have harassed taxpayers.

Also Read: IT Ministry Joins Hands With Google to Roll Out ‘Build for Digital India’

A report on this matter has been submitted to the Finance Minister by the Steering Committee on Fintech-related issues. Since there will be no corrupt officers handling assessments anymore, everything will be on the record. 

e-Verification will be carried out with a set of 10 questions, which must be answered by the taxpayers. If the questions are satisfactorily answered, it’s great. Otherwise, the AI will send your case to an officer for further investigation. Data will be integrated from the Ministry of Corporate Affairs (MCA), Central Board of Direct Taxes (CBDT), and GS; it is expected to take about a year’s time to compile all the necessary data.

You May Also Like

Digital Trade Finance Platform Launched by MODIFI in India

MODIFI, a European fintech, recently announced to launch a digital trade finance…

How Regulatory Sandbox Works in India for FinTech

Advancement in technology has incubated the growth of several industries in India…

Cryptocurrency and Income Tax in India

Regulations on cryptocurrencies are different in different countries across the globe. Even…

Supreme Court to hold hearing on Cryptocurrency on 23 July 2019

RBI had notified all financial institutions to abstain from crypto-related matters last…