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All About New AI Scrutiny System With Working Process

Summary of New AI Scrutiny System

In this year the assesses must expect delays in their income tax refunds. For scrutinizing income tax returns (ITRs) the government has implemented a rigorous (Strict) new system using a specially designed, self-automated artificial intelligence (AI) software program.

Advanced AI for Comprehensive Examination

The new AI program is made to validate the preciseness of all the data furnished in your ITR. Below is the working procedure of the system-

Gathering and Cross-Checking Data

    Comprehensive Financial Analysis

    Read Also: Easy to Claim & Check Status of Income Tax Refund Online

    Verification of Property and Transactions

    Comparison with Submitted Data

    All gathered information will be compared with the data that you have shown in your ITR. It comprises cross-checking with the TDS data in Form 26AS. The program shall compute any differences in declared and undeclared income and furnish the demand notice u/s 143(1) if inconsistencies are discovered.

    Implementation and Its Impact on IT Refunds

    The same AI-ITR program has been tested successfully and is finalized and shall be executed for the first time this year. As to the extensive nature of the same new system, the ITR processing shall be delayed. It is anticipated that all the returns shall be processed by the last week of July or, at the latest, the first week of August.

    Recommendation for Taxpayers

    The people who do not undergo income tax return (ITR) filing shall be scrutinized to ensure that all the data is accurate.

    Hence the accuracy and tax assessment fairness shall be the objective to be improved by the new AI system, which would result in delays while processing of returns. To prevent any complications the assesses must be patient and ensure their filings are accurate.

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