On February 1, the Budget for the fiscal year 2024-25 will be presented in Lok Sabha by Union Finance Minister Nirmala Sitharaman. This Union Budget is considered interim due to the upcoming Lok Sabha elections early next year. The complete budget is expected to be formulated after the establishment of a new government.
Experts in the industry suggest that incorporating artificial intelligence (AI) into the tax filing process could bring advantages for both citizens and the government.
Tax experts mentioned that By leveraging advanced natural language processing capabilities, intelligent chatbots could comprehend intricate financial data and automatically fill in returns for review. This has the potential to save time for filers while simultaneously reducing processing costs for the tax authority.
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Introducing AI into tax filing has the potential to save time and cut processing costs; however, ensuring a positive user experience and implementing safeguards is paramount.
Nevertheless, rigorous testing and a strong emphasis on user experience are vital, as even a minor error could result in penalties or audits. While AI holds the promise of significant gains in speed and convenience, its successful implementation requires robust safeguards.
Experts argue that AI has the potential to automate data collection and calculations in tax return filing, promoting compliance and freeing up resources for investigative purposes.
Ashish Aggarwal, Director at Acube Ventures, suggests that India should actively explore the use of AI in routine tax filing tasks. By automating data collection and calculations, Artificial Intelligence can streamline the arduous paperwork, allowing citizens to simply review and submit.
However, for these systems to gain widespread acceptance, accessibility and security are crucial. A user-friendly design with multilanguage support can cater to a broader audience, while robust cybersecurity measures and transparent AI contribute to building public trust.
Experts are optimistic that if implemented responsibly, AI in taxation could bring the vision of a paperless paradise closer to reality.
