The Income Tax department is exploring usage of artificial intelligence (AI) to build regression models to identify deviations and errors in tax filing and separate those deviations for further assessment, according to a senior tax official. 

“We are creating a regression model. We had discussion with Prof V Kamakoti, Director of IIT Madras to see how AI can be used to analyse the data that we have gathered and get into a regression model to find deviations,” said V Nandakumar, Commissioner of Income Tax, Department of Revenue.

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He was delivering the special address at the ‘Conference on Artificial Intelligence’ organised by the Confederation of Indian Industry (CII) here on Friday. The theme of the event was “Unlocking the Global Trends and Opportunities in Artificial Intelligence during the Post–Pandemic Era”.  

It is to be noted that the Income Tax department has been leveraging data analytics and embracing technology to simplify the compliance burden on taxpayers and to identify tax evasions. Some of its initiatives include pre-filled ITR forms to improve income tax return filing, faceless assessments and appeals to remove the physical interaction with the IT department. Even grievance redressal is handled through Centralised Public Grievance Redress and Monitoring System (CPGRAMS),e-Nivaran and Aaykar Seva Kendras (ASK).

Nandakumar added that the Income Tax department has gathered a lot of intelligence under the faceless assessment scheme and the regression model will simply help the department to split deviations and assess them separately. “No more human intelligence is required to find out the deviations,” he added. 

In his special address, Shankar Viswanathan, Chief Information Officer, Sundaram Clayton Ltd, said the company is building a new factory where it will deploy mobile robots to carry material from one part to the other powered by 5G technology and other applications to recognise safe working conditions. 

“The factory is already connected with a lot of IOT devices. It means a lot of data will be generated which will be processed by an AI engine for efficiency. This will be the first fully 5G-wired factory in the country. We have already done pilot work and full scale deployment will happen in the months to come,” he added.  

Sundaram Clayton Ltd is an autoparts manufacturing company and part of the TVS Group.