Introduction
Nitin Gupta, Chairman of the Central Board of Direct Taxes (CBDT), underscores the positive impact of technology, particularly artificial intelligence, in elevating tax compliance standards.
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Embracing Technology for Improved Compliance
In a recent interview post-budget, Gupta highlighted the significant strides made in tax compliance through the integration of technology, emphasizing the role of artificial intelligence in this transformative process.
Technological Vigilance
Gupta revealed that approximately 44 lakh emails were dispatched to taxpayers in December. These communications aimed to address discrepancies between declared income and financial transactions, pinpointed through technology-driven risk assessment protocols. This proactive approach, powered by AI, served as a vigilant measure to alert taxpayers about potential disparities.
Closing the Evasion Gap
The incorporation of advanced technology, coupled with legal amendments, has effectively curbed possibilities of tax evasion. Gupta expressed confidence in the substantial progress achieved in closing the gaps that once allowed for potential tax evasion.
Interview Insights
In his conversation with The Indian Express, Gupta emphasized the omnipresence of new technology in their operations. The strategic use of data-driven risk assessment allowed them to identify mismatches in income and financial transactions. The subsequent communication aimed to nudge taxpayers into self-assessment and rectification.
Conclusion
CBDT Chairman Nitin Gupta's insights shed light on the pivotal role of technology, particularly AI, in fortifying the landscape of direct tax compliance. The integration of these tools not only detects irregularities but also fosters a collaborative environment by encouraging taxpayers to actively participate in ensuring accurate income disclosure.
