New Delhi: The Central Board of Direct Taxes (CBDT) is ramping up efforts to tackle tax evasion using artificial intelligence (AI) and data analytics.
CBDT Chairman Ravi Agrawal said the department is drawing insights from over 6.5 billion domestic transactions and improved global data-sharing arrangements to identify income discrepancies.
He also highlighted that the digital records are accessed only in cases involving non-compliant taxpayers, ensuring the privacy of law-abiding citizens.
To boost voluntary compliance, the department has been sharing financial transaction data with taxpayers.
Since April 2022, over 11 million updated returns have been filed, contributing Rs 11,000 crore in taxes. A compliance campaign led to the withdrawal of Rs 963 crore in wrongful claims and added Rs 409.5 crore in taxes between April 2023 and June 2025.
It should be noted that more than 30,000 individuals also disclosed Rs 29,208 crore in foreign assets and Rs 1,089 crore in overseas income.
However, it has also been reported that the department is monitoring risks like cryptocurrencies and the dark web.
Digitisation has expanded the taxpayer base from 30 million in FY14 to 90 million in FY25, while refund processing has accelerated dramatically.
About 22 per cent of returns are now processed within a day, with 99 per cent of pre-filled data found accurate. Apparently, preparations are underway for implementing the new tax law from April 2026.
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