Why in news?
On 2 April 2026 the Central Board of Direct Taxes (CBDT) unveiled a new e‑filing portal for the forthcoming Income Tax Act 2025. Integral to the portal is an artificial‑intelligence chatbot called Kar Saathi that offers round‑the‑clock support in English and Hindi to help taxpayers understand the new law and navigate online filings. The initiative is part of the Finance Ministry’s outreach programme PRARAMBH 2026.
Background
The Income Tax Act 1961 is being replaced by a simplified code—often referred to as the Income Tax Act 2025—to reduce ambiguity and streamline compliance. PRARAMBH 2026 (Programme for Rationalisation and Review of Acts via Modernisation for Business Harmony) aims to educate citizens about the changes through digital tools and outreach. Kar Saathi is a domain‑specific AI assistant trained on tax rules, forms and deadlines; unlike general chatbots it provides curated answers, not opinions.
Features and operation
- 24×7 multilingual help: Users can ask questions at any time in English or Hindi. Queries about residential status, tax slabs, deduction eligibility, filing timelines and e‑verification processes are answered in simple language.
- Accessible platforms: Apart from the web portal, Kar Saathi is available via SMS and through a call‑centre interface, ensuring inclusion of non‑Internet users.
- Guided assistance: The chatbot provides step‑by‑step guidance on filling ITR forms and links to relevant sections of the Act, reducing error rates. It currently covers individual and small‑business filings and will expand to other categories as the new law rolls out.
Advantages
- Makes the transition to the new tax regime smoother by clarifying rules and procedures.
- Encourages digital literacy and compliance, reducing reliance on intermediaries for basic queries.
- Demonstrates the government’s commitment to citizen‑centric, technology‑driven public services.
Source: Business Standard · Financial Express · Press Information Bureau
