The Central Board of Direct Taxes (CBDT) is stepping up its efforts to combat tax evasion using advanced data analytics and artificial intelligence (AI) ahead of the new income tax law. CBDT Chairman Ravi Agrawal stated that the department will intensify its crackdown on tax evaders, leveraging over 6.5 billion domestic digital transactions and exchanging information with overseas agencies to detect evasion more effectively.
The CBDT aims to use AI to identify discrepancies in income reporting, enabling more effective detection of tax evasion. By analyzing vast digital transaction data, the department can pinpoint tax evaders and ensure compliance. The CBDT will also exchange information with overseas agencies to track down tax evaders with foreign assets.
The department has already achieved significant success in its efforts to combat tax evasion. It has set a target of unearthing Rs 2.4 lakh crore in undisclosed income for FY26. A recent nudge campaign led to the withdrawal of tax deduction claims worth Rs 963 crore and payment of Rs 409.50 crore in additional taxes. Furthermore, 30,161 taxpayers declared foreign assets worth Rs 29,208 crore and foreign income of Rs 1,089 crore between November 2024 and March 31, 2025.
