ITR Filing in 2025: Patterns, Online Behavior of Taxpayers under AI Analysis, says CBDT Chief
AI Observes, “Nudges”, and Flags Non-Compliance
With the extended deadline for income tax return filing approaching on September 15, the Central Board of Direct Taxes (CBDT) has unveiled fresh insights into how India’s taxpayers are engaging with the new compliance landscape and the role of artificial intelligence (AI) in shaping it. This year’s income tax season is witnessing a rush of digital activity. The introduction of...
With the extended deadline for income tax return filing approaching on September 15, the Central Board of Direct Taxes (CBDT) has unveiled fresh insights into how India’s taxpayers are engaging with the new compliance landscape and the role of artificial intelligence (AI) in shaping it.
This year’s income tax season is witnessing a rush of digital activity. The introduction of revised ITR forms and capital gains disclosure requirements has resulted in over 24 crore visits to the Income Tax Department’s Annual Information Statement (AIS) portal, yet only about 9 crore returns were filed last year-a gap the department is scrutinizing. Taxpayers, on average, accessed the AIS 3.5 times each, often signaling struggles or intent to file, says CBDT Chairman Ravi Agrawal.
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The government has extended the due date to file ITR for Assessment Year 2025-26 to September 15, 2025, for non-audit taxpayers, acknowledging the major changes in forms and the need for updated system utilities. Businesses subject to audit have until October 31, while belated or revised returns can be filed until December 31, 2025.
The Income Tax Department’s latest compliance drive employs robust AI-powered data analytics to monitor online taxpayer behavior, not just financial transactions. The department now tracks how often taxpayers check their AIS, identifies those with high-value transactions who haven’t filed returns, and scans for repeated errors or questionable claims. “The idea is to progressively create a 360-degree profile of taxpayers' transactions and filing patterns,” Agrawal said. Suspicious Permanent Account Numbers (PANs), high-value transactions without matching returns, and repeat access to AIS trigger red flags, prompting intervention by email or SMS.
Since 2022, these AI interventions-which the department calls its Nudge campaign-have resulted in over 11 million updated return filings and an additional ₹11,000 crore in collected taxes. Targeted campaigns have encouraged voluntary withdrawals of incorrect deductions, plugging revenue leakage and encouraging greater transparency.
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AI analysis has revealed a segment of taxpayers who repeatedly view their AIS without completing a return, while others falsely claim exemptions or deductions. The department uses these digital footprints to offer assistance or apply compliance nudges, as a strategy of “enforcement with empathy.” This approach, blending automated alerts with facilitation, seeks to maximize voluntary compliance before resorting to stricter enforcement actions.
The CBDT’s push for tech-enabled compliance signals a new era in tax administration-one where every digital interaction, from portal visits to revised claims, can help the tax system “nudge” India’s vast and varied taxpayer base toward timely, accurate, and honest filing. As the September deadline draws near, officials urge taxpayers to take advantage of the extended window, mindful that AI is now watching, learning, and shaping tax behavior nationwide.
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