“The Implications of Artificial Intelligence on Indian Taxes and Customs”

Abstract

The integration of AI into tax systems represents a significant transformation in how tax authorities manage data, ensure compliance, and interact with taxpayers. This shift is not merely about adopting new technologies but has the potential to reshape the tax landscape in ways equal to the broader digital revolution impacting global economies. However, meaningful progress in AI hinges on identifying practical applications rather than being driven solely by technological enthusiasm. Through advanced machine learning techniques, AI enhances data analytics by predicting future trends based on historical data. This allows businesses to identify potential compliance issues before they arise. Nonetheless, challenges such as the need for large, well-organized data sets and concerns over privacy must be addressed before AI can be fully integrated into tax systems. In response to a complex and evolving regulatory environment, tax authorities and advisors are increasingly using advanced data analytics and AI to streamline compliance processes and provide comprehensive support to a diverse range of clients and taxpayers. The introduction of automated technology into the tax field brings innovative solutions to common tax challenges. This research examined the factors influencing AI adoption and the barriers to its implementation, specifically within the context of Indian taxation and customs, to explore the future of AI development in this sector.