AI is being used by the Income Tax Department to identify fake exemption takers. Along with this, notice has also been sent to such people from the IT department.
The Income Tax Department of the country has become advanced with technology. The assessment of ITRs deposited between the financial year 2018-19 is being done by the IT department using AI. It has a higher number of returns in which donations have been made to a trust, political party and charitable trust on behalf of an individual.
According to reports, from March 20 to June 10 this year, a large number of such people have been sent notices by the Income Tax Department, who have shown in their ITR returns donations given to trusts, political parties and charitable trusts etc. .
How to use AI in Income Tax?
The Income Tax Department is identifying such ITRs filed using AI i.e. Artificial Intelligence, in which the ratio of donation to income has decreased in the financial year 2018-19.
Let us tell you, according to Section 80G of Income Tax, a rebate ranging from 50 to 100 percent can be taken on the amount donated to political parties and charitable trusts.
What’s in the notice?
These notices are being issued under sections 138 and 148A of Income Tax. In the notice, questions have been raised regarding only that exemption which has been taken wrongly. In some cases, a substantial portion of the claim proceeds have been donated to charity, due to which reassessment notices have been sent to them.
Let us tell you, on behalf of income tax, the reassessment of those earning more than Rs 50 lakh can be done after 10 years of filing income tax and the reassessment of those earning less than Rs 50 lakh can be done for 8 years .
