INDIA will be the first country to deploy ML(.Machine Learning) and AI (Artificial Intelligence) in Tax assessment

India will soon become the first country to deploy Artificial intelligence (AI) and Machine learning (ML)in the tax assessment process. Present Finance Minister of India Nirmala Sitharaman has promised INDIA will be the first country to deploy  ML and AI in Tax assessment to adopt AI based  assessment system from October this year.


 The government has set the deadline of October 8, for the implementation of AI and ML for the assessment purposes. Now data in the income tax return, statement of financial transactions and from other sources will be analysed as per the pre-defined risk criteria. “For example, if someone has deducted your TDS as Rs 10 lakhs but you don’t show the income in ITR, then AI will pick it up for deeper audit ,” a source in the know explained.
*  For example, an Alpha employer has deducted his TDS as Rs 10 lakhs but he doesn’t show equivalent income in ITR, then AI will pick it up for deeper audit. This audit/inspection will be done using e-verification where a structured questionnaire will be sent to Alpha using ML. If the answer is okay, the case will get closed. If not, AI will send the case to the officer for further investigation, which will proceed using the AI electronic portal. Traditionally, the tax  officer asks for docs and follows a line of investigation


The government is also planning to integrate data from MCA(Ministry of Corporate Affairs), Central Board of Direct Taxes (CBDT) and GS) within a year — which is likely to be announced in the next year’s budget.


The government wants AI & ML instead of manual intervention to do everything. So data integration is the key.


People have been complaining about harassment due to two main reasons for years now – refund delay and unnecessary demands/litigation raised in audit.

“It is not clear how these advanced technologies will help solve these two issues. In fact, they pose a greater risk of high-pitched assessment because tax officer will not be interested in hearing out the assessee and will instead rely on computer data.”

I think now every one got an idea of how ML & AI are emerging. Most of the Banking domain and Online Ecommerce business like Amazon, Flipcart etc are already using the ML to predict the customer need and show the realted items. Even your keyboad is predicting the word just after typing a single letter, complete sentence predicting in the google search these are done by linear logarithms used in th ML.

–  Guy’s pay your taxes properly so that there will not be any issues in future 😉.

  • No need to fear 😱 on audits as the future gonna change every thing Machine works without taking money and will not harass you during the audits for money etc…

Its a great news for every one. Techies who are  interested in making there carrer in top notch then just upgrade yourself to ML or AI or Data scientist, Analyst so that you can get ‘n’ number of opportunities because all the technologies are completely moving over ML&AI.  Hurry up guy’s…
All the best in Advance…