Use artificial intelligence for tax compliance: Direct tax panel

The direct tax panel, headed by Akhilesh Ranjan, has recommended, among a slew of changes in tax rate structure, use of artificial intelligence (AI) in the tax-compliance and administration process. This, sources in the know said, would compel an income bearer and a potential taxpayer to be a part of the tax net, thereby improving the tax base and compliance. 

The panel has also proposed to introduce collaborative compliance in direct tax administration, which would integrate data from banks, financial institutions and the goods and services tax (GST) network to ensure that the scope of taxable income increases.

This will be complemented