In this year the assessees 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
- Firstly all data linked to your PAN card shall be collected by the AI.
- After that, it cross-referenced the same data with the information related to your Aadhaar card.
- AI would compute the transactions related to both your PAN and Aadhaar with the bank accounts that you have declared.
Comprehensive Financial Analysis
- The collection of the information on your fixed deposits, quarterly interest credits, share dividends, share transactions, and both long-term and short-term gains from mutual funds and shares, shall be performed by the program.
- After that, it shall scrutinize the undeclared bank accounts in your name, including joint accounts where you are listed as a second or third holder.
- Also, the AI shall search for postal accounts, cooperative bank accounts, local credit institutions, and various postal savings schemes, both single and joint, specifically those concerning family members who are not registered ITR filers.
Read Also: Easy to Claim & Check Status of Income Tax Refund Online
Verification of Property and Transactions
- Your PAN card would get validated through AI with the government registry offices to fetch any land and immovable property transactions over the past 3 years.
- The same would indeed analyze your debit and credit card transactions, passport and visa records, and vehicle purchase or sale history.
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 assessees must be patient and ensure their filings are accurate.
