Indian Tax Office Harnessing AI for Crackdown on Avoidance

India’s tax department has launched a large-scale operation using artificial intelligence tools to identify individuals and entities that are facilitating fraudulent income tax filings.

Investigations so far have shown that there are organized operations by tax return preparers who file fraudulent claims for deductions and exemptions to lower clients’ tax bills, according to a government press release.

“To identify suspicious patterns, the IT Department has leveraged financial data received from third-party sources, ground-level intelligence, and advanced artificial intelligence tools,” according to the Monday release.

The tax department has increasingly adopted technology and digitized its ...