As earnings tax return submitting season is underway, many working professionals are turning to AI instruments and sharing their expertise on social media. They are saying synthetic intelligence instruments like ChatGPT and Claude AI are serving to them perceive complicated tax phrases, coping with portal glitches, and even figuring out mismatches in Annual Info Assertion (AIS).
In a single such viral LinkedIn put up, Akhil Sood, a senior Amazon govt who lives in Washington, shared that he filed his tax return with the assistance of an AI assistant. He famous that as a Non Resident Indian (NRI), tax submitting has all the time felt extra sophisticated “than it ought to be”.
Nonetheless, the query of how dependable AI really is stays unsettled. Whereas some declare that it makes work quicker. others level out that it could possibly nonetheless make errors and trigger points in tax returns. As 4 consultants instructed Mint, AI could also be helpful however not but one thing you may totally depend on with out human checks.
Why utilizing AI to file ITR could trigger points?
A significant concern associated to utilizing such chatbots for submitting ITR is that normal AI is designed to imitate human dialog, to not course of inflexible monetary laws, mentioned Archit Gupta, CEO of Cleartax.
“As a result of there is no such thing as a structured compliance engine working within the background, the logic can shift. It is rather widespread to enter the very same doc twice and get completely different calculation outcomes. Since these platforms do not supply any accuracy ensures, the taxpayer is left carrying all the chance if a calculation error triggers a discover,” he famous.
One other concern flagged by Alay Razvi, Managing Companion at Accord Juris is that AI instruments like ChatGPT and Claude should not constructed for Indian tax legal guidelines. Therefore, these instruments can put a taxpayer’s private information in danger and at occasions additionally generate content material based mostly on outdated information.
Can AI seize all ITR-related particulars precisely?
AI instruments can not seize all earnings sources, deductions, and reporting necessities precisely, the consultants famous.
“AI programs wrestle with sophisticated tax conditions like having a number of kinds of earnings (wage, home lease, inventory market income, enterprise earnings), overseas earnings from different nations, particular deduction guidelines below sections 80C, 80D with particular situations, and capital features from many alternative inventory or property transactions,” Razvi mentioned.
Nonetheless, Pallav Pradyumn Narang, Companion at CNK, had a barely completely different view. He mentioned AI instruments are good at capturing information, however tax submitting nonetheless wants correct context and historic understanding. With out it, AI could file data accurately however fail to use the precise tax guidelines or current it precisely.
Can taxpayers search leniency if AI-led ITR submitting results in scrutiny?
No. The obligation for the return stays with the taxpayer. Reliance on AI is unlikely to be a defence towards a tax demand, penalty, or scrutiny, although it could typically help a declare of a bona fide mistake, mentioned Raheel Patel, Companion at Gandhi Legislation Associates.
“You can’t use inaccurate recommendation from an automatic chatbot to get penalties or curiosity waived. The duty to test and confirm that each single element is appropriate all the time rests solely on the person,” mentioned Gupta.
Privateness implications of utilizing AI to file ITR
Taxpayers have to be cautious about importing PAN, wage slips, financial institution statements, and different delicate paperwork to AI platforms, the consultants suggested.
“Such information could also be saved or processed by third events, creating privateness and data-security dangers. Redacting private data wherever doable is advisable,” Patel mentioned, noting that it’s positively one thing taxpayers ought to keep away from.
Past private danger, it’s also a technique to violate your personal employer’s information safety insurance policies, Gupta famous.
The due date to file ITR for many particular person taxpayers who don’t require a tax audit is July 31, 2026.
Disclaimer: This story is for academic functions solely. The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint. We advise traders to test with licensed consultants earlier than making any funding choices.
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Eshita Acquire is a digital journalist at Mint, the place she joined in Might 2025. She writes on company developments, private finance, markets, and enterprise traits, with a give attention to delivering well timed and related tales to a broad viewers.
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