On 1 February, Union Finance Minister Nirmala Sitharaman will present the Budget 2024-25 in Lok Sabha. The Union Budget 2024 is an interim budget because Lok Sabha elections are due early next year. The full budget will be after forming a new government
Industry experts believe that implementing artificial intelligence (AI) to simplify tax filing could benefit citizens and government alike.
“With advanced natural language processing capabilities, intelligent chatbots could understand complex financial data and automatically populate returns for review. This would save time for filers while reducing processing costs for the tax authority,” said Agam Gupta—Executive Director at Share India Fincap Pvt. Ltd.
Implementing AI for tax filing could save time and reduce processing costs, but user experience and safeguards are crucial.
“However, rigorous testing and focus on user experience are crucial, as one minor error could lead to penalties or audits. AI promises major gains in speed and convenience, but appropriate safeguards must support its rollout,” Gupta added.
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Experts believe that AI can automate data collection and calculations for tax filing, encouraging compliance and freeing up resources for investigation.
According to Ashish Aggarwal, Director, Acube Ventures, India would do well to pursue AI for routine tax filing tasks. Automating data collection and calculations, AI can prefill tedious paperwork so citizens merely review and submit. For such systems to take hold, though, accessibility and security are paramount. User-friendly design with multilanguage support reaches more Indians, while stringent cybersecurity protections and explainable AI build public trust.
Experts believe that if executed responsibly, tax AI could bring paperless paradise closer to reality.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 18 Jan 2024, 01:20 PM IST