Income Tax: All fraud will be caught! Income Tax Department has information about every transaction of yours..

Tax evaders are now in trouble. The Income Tax Department will use data and Artificial Intelligence (AI). This will make it easier to catch those who give wrong information about their income. This is part of the new Income Tax Act. The bill related to this is going to be passed in the current session of Parliament. Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal said this in an interview. He said that the Income Tax Department has information about more than 6.5 billion digital transactions. Also, information is being received from abroad. This will make it even easier to catch tax evasion.

Aggarwal expressed concern about the access of tax officials to digital records. He said that this right is limited only to cases of search and seizure. This happens when taxpayers refuse to give information. Its purpose is not to spy on common taxpayers. Agarwal said, "The next phase of AI will be even faster. Reporting agencies will provide even better data. This will help in identifying and taking action against tax evaders." Benefits of data analysis
The Income Tax Department is providing information about the financial transactions of taxpayers. Due to this, people are coming forward to pay taxes themselves. Since the introduction of this facility, 11 million updated returns have been filed. This has resulted in an additional tax of more than ₹ 11,000 crore. This facility started on April 1, 2022.

An awareness campaign was recently launched. Due to this, tax exemption claims of ₹ 963 crore were withdrawn. Also, additional tax of ₹ 409.50 crore was deposited between April 1, 2023, and June 18, 2025. Between November 2024 and March 31, 2025, 30,161 taxpayers declared foreign assets worth ₹ 29,208 crore and foreign income of ₹ 1,089 crore. Aggarwal said, "It was all the result of data analysis that we were able to take action simultaneously across India."

Everything is under surveillance.
Tax officials say that the department does not interfere with the work of the people. It only helps, but keep an eye. The CBDT chairman said that a similar campaign will be run this year as well. New data will be used in this. The information received under different information exchange agreements has improved in the last two years.

He said, "The quality of information has improved. They have understood our needs. This is helping us to identify those taxpayers who have foreign assets." Along with changes in technology, the dark web, crypto and other new types of transactions are also being monitored.

Number of taxpayers
The CBDT chairman said that digitization has increased the number of taxpayers. This number was 3 crore in FY14, which has increased to 9 crore in FY25. Data showed that gross refund issuance has increased by 474%. It rose from ₹83,008 crore in FY14 to ₹4.76 lakh crore in FY25. The average time for refund processing has come down from 93 days to 17 days. About 22% of income tax returns are processed in a day. 26% of returns are processed in two to seven days.

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