Tax evasion will have to be done heavily in Income Tax, IT department is catching tax evasion with AI

Income Tax Evasion: Tax payers try to get exemption in income tax by showing donation. Now it will be known from Artificial Intelligence whether this donation has really been given or it has been done only to save tax.

Artificial Intelligence to Track Income Tax Evasion: Artificial Intelligence (AI) is being seen everywhere. This technology has become more popular since the advent of ChatGPT . The impact of AI is increasing continuously in our lives as well. Whether it is changing the channel by speaking while watching smart TV or searching something by speaking in 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 benefit of artificial intelligence is 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 their income.

AI catches tax evasion like this

A lot of wrong things are said about AI, but many correct results have also come to the fore. One of the biggest features of AI is 'Pattern Recognition'. This means that if a task is done in a certain way, the AI ​​catches on immediately. AI can detect if tax payers evade tax in a particular way while filing income tax.

IT department sent notice

According to a Moneycontrol 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. After re-examining several income tax returns, action has been taken to issue the notice. The Income Tax Department is especially focusing on the exemption available under donation.

Tax exemption is available on donation

In the financial year 2019, more attention is being given 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 donations made to political parties and charitable trusts. On the other hand, the IT department has sent notices under section 138 and 148(A) to several hundred people who have claimed 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. 50-200% penalty may have to be paid for not proving the transaction.