Can Artificial Intelligence Remove Tax Compliance Inefficiencies In India?

There could also be a number of challenges that tax authorities in India may face when using artificial intelligence. These can include the need to balance centralisation of tax assessment with on-ground experience, uncertainties around being able to develop models which deliver a positive impact on performance, the varying range of choices in AI solutions, and the need for skills to leverage those advanced solutions. India may soon become the first country to use artificial intelligence and machine learning in the tax assessment process. Finance Minister Nirmala Sitharaman has announced that the government will deploy a faceless assessment system based on AI and ML, starting October 2019. The overall process will increase the accuracy and transparency of India's tax assessment process, thereby improving the tax base and compliance.