The Role Of Artificial Intelligence And Machine Learning In Enhancing Tax Compliance And Fraud Detection In India

Abstract

Artificial Intelligence (AI) and Machine Learning (ML) are revolutionizing different industries around the world, including the field of tax compliance and detection of fraud. In India, where tax evasion is a major issue, the use of AI and ML in tax systems is turning out to be a game-changer. These technologies allow tax authorities to automate compliance, detect fraud, and forecast tax evasion with incredible accuracy. This research paper delves into the ways in which AI and ML are improving tax compliance and fraud detection in India, highlighting their theoretical base, practical use, and future prospect. The research also addresses challenges like data privacy, bias in algorithms, and hurdles in technology adoption. Lastly, the paper touches upon future trends, stressing the importance of emerging technologies in facilitating transparency and efficiency in India's tax administration.