In a significant tax evasion case in Hyderabad, the income tax (I-T) department utilized digital forensics and generative AI to uncover fraud involving forged improvement bills. A taxpayer who sold property for Rs 1.4 crore claimed deductions to reduce his capital gains liability drastically, reporting only Rs 24,774 in long-term capital gains (LTCG). He attempted to validate his deductions of Rs 68.7 lakh and an indexed acquisition cost of Rs 73 lakh through photocopies of bills from 2002 to 2008. However, AI tools identified discrepancies, notably that the documents featured the Calibri font, which was not publicly available until 2006. As a result, I-T officials deemed the documents fabricated. Upon realizing the evidence against him, the taxpayer withdrew his claims, revised his return, and paid taxes based on accurate capital gains. This case exemplifies how AI technology is revolutionizing tax enforcement and combating financial fraud.
Source link
