New Delhi. The facility of Fully Automated Tax Filings may start soon in India. In fact, India's large taxpayers - including corporates, foreign institutional investors and multinational companies - may benefit from fully automated tax filing and compliance in the coming days. Because, the central government is opening access to the Application Programming Interface (API) of its tax portals to third parties.
The government has already granted API access to the Goods and Services Tax (GST) system, while a similar access is expected for direct taxes under the Central Board of Direct Taxes and Customs, according to people with knowledge of the matter, Moneycontrol reported.
AI technology will be used
Industry experts say that with such access, consulting firms and technology providers will be able to create tools based on Artificial Intelligence (AI), which will significantly reduce manual interference in tax compliance.
The move also assumes significance as large companies currently depend on multiple government portals to track filings, notices and litigation in GST, Income Tax and Customs. Although most returns are now filed online, many processes – such as tracking tax appeals – still require manual checks across different systems.
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"Government-issued APIs play an important role in turning tax compliance into an easier, technology-based function. These APIs allow large taxpayers to integrate their internal accounting and compliance systems directly with the government's tax ecosystem," said a person associated with the development. “Now consultants can combine this access with AI tools to create systems with minimal human intervention.”