A Study on Application of Artificial Intelligence and Machine Learning in Indian Taxation System

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Ankit Rathi et al.


 In a developing economy like India taxation is a main source of public finance. Indian taxation system always suffered from problems such as tax evasion, inefficient administration etc. Administration of taxation always needs such a system which will be less in error and prompt in decision making. Indian taxation system is suffering from lack of manpower to perform tedious tasks such as data entry, scrutiny of return, tax audit etc.

To manage the changing tax landscape alongside use of analytics recently Indian government announced the use of Artificial Intelligence/Machine Learning in tax assessment system. Artificial Intelligence or known as AI is a relatively new phenomenon in tax. Recently the government of India announced to use faceless tax assessment system empowered by AI/ML.

In the Present paper we attempt to find out the role of AI/ML in Indian taxation system and on the basis of factors such as tax knowledge, tax education, legal sanction, complexity of tax system, relationship with tax authority, perceived fairness of the tax system, ethics and attitudes towards tax compliance, awareness of offences and penalties, tax education, possibility of being audited etc. we want to know about the perception of taxpayers towards adoption of Artificial Intelligence based tax system.


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