Income Tax Evasion: If you are a taxpayer then this news is for you. AI is being used to identify tax evaders. In such a situation, those who commit tax fraud are no longer in trouble… In this way, the income tax will be known within a minute.
Artificial Intelligence to Track Income Tax Evasion: The power of Artificial Intelligence (AI) is being seen everywhere. Since the advent of ChatGPT, this technology has become more popular. The impact of AI is continuously increasing in our lives. Whether you want to change the channel by speaking while watching smart TV or searching something by speaking on your mobile, AI is being used everywhere. Now the Income Tax Department has recognized its power. The IT department is using AI to detect irregularities in income tax.
The benefits of Artificial Intelligence are being taken in different sectors. The Income Tax Department has also taken the help of AI. AI is being used to identify tax evaders. Let us see how AI catches tax payers hiding income information.
This is how AI catches tax evasion-
A lot of wrong things are said about AI, but many positive results have also emerged. One of the biggest features of AI is ‘pattern recognition’. This means that if any work is done in a particular way then AI catches it immediately. While filing income tax, AI can detect if tax payers evade tax in a particular manner.
IT department sent notice-
According to a report, the IT department has issued notices to many salaried tax payers. All these notices have been sent by the department between March 20 and June 10. The action of issuing notices has been taken after re-examining several income tax returns. The Income Tax Department is especially focusing on the exemption available under donations.
Tax exemption is available on donating-
In the financial year 2019, more attention is being paid to donations given to political parties and charitable trusts. Under Section 80G of the Income Tax Act, 1961, tax payers can claim 50-100% tax exemption on the basis of donations made to political parties and charitable trusts. On the other hand, the IT department has sent notices under sections 138 and 148 (A) to several hundred people who have claimed to avail section 80G exemption.
AI has identified several tax payers who have claimed donations in FY 2019. Some of them have shown huge donations to get more discounts. Now these tax payers will have to provide proof related to donation. If they fail to do so, they will have to pay the penalty mentioned in the notice. Failure to prove the transaction may result in a penalty of 50-200%.
