For scrutinising 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 accuracy 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 is collected by the AI.
- After that, it cross-referenced the same data with the information related to your Aadhaar card.
- Now, AI compute the transactions related to both your PAN and Aadhaar with the bank accounts that you have declared.
Comprehensive Financial Analysis
- The collection of 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 is performed by the program.
- After that, it scrutinises the undeclared bank accounts in your name, including joint accounts where you are listed as a second or third holder.
- Also, the AI searches 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 is being validated through AI with government registry databases to fetch any land or immovable property transactions from the past three years.
- The same indeed analyse your debit and credit card transactions, passport and visa records, and vehicle purchase or sale history.
Comparison with Submitted Data
All gathered information compared with the data that you have shown in your ITR. It comprises cross-checking with the TDS data in Form 26AS. The program computes any differences in declared and undeclared income and furnishes 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 finalised and executed for the first time this year. Due to the extensive nature of the new system, the ITR processing is delayed.
Recommendation for Taxpayers
The people who do not file an income tax return (ITR) are scrutinised to ensure that all the data is accurate.
Hence, the accuracy and tax assessment fairness are objective to be improved by the new AI system, which results in delays in the processing of returns. To prevent any complications, the assessees’ patients and ensure their filings are accurate.
