Why is it in the news?
Increasing use of AI in tax administration via Project Insight.
Category: Economy / Governance / Science
Important Points:
● Project Insight launched in 2017 (operational 2019)
● Uses AI & data analytics for tax compliance
● Creates 360° financial profile of taxpayers
● INTRAC: core analytics engine
● CMCPC: identifies discrepancies
● NUDGE: SMS/email reminders for voluntary compliance
● Over 1 crore revised returns → ₹11,000 crore additional revenue
● Refund time reduced from 93 to 17 days
● Detected ₹70,000 crore tax evasion since 2019
● Risks: bias, privacy concerns, lack of transparency, false positives