The Central Board of Direct Taxes (CBDT) has successfully implemented the ‘Non-intrusive Usage of Data to Guide and Enable taxpayers’ (NUDGE) strategy, leading to over 30 taxpayers declaring foreign assets and a ₹963 crore reduction in false deduction claims. Chairman Ravi Agrawal highlighted the proactive use of advanced data analytics and artificial intelligence to create comprehensive taxpayer profiles, identifying inconsistencies without manual intervention. The initiative has nudged 62% of 19,501 contacted taxpayers to correct their returns, resulting in substantial additional tax collections. With plans to enhance AI and machine learning capabilities further, the CBDT is also addressing concerns about data privacy and cybersecurity. The new Income Tax Bill focuses on modernizing existing provisions for digital tax evasion without intrusive surveillance. The IT system has improved stability, processing over 7.28 crore returns in 2024, suggesting readiness for increased demand. Overall, CBDT promotes voluntary compliance through education and better taxpayer services.
Source link
