Now Every Digital Activity is Under Department Surveillance: AI and Data Analytics Become the ‘Third Eye’ of Income Tax and GST Departments

Udaipur: In the digital era, Artificial Intelligence and modern data analytics have completely transformed the functioning of tax administration. Social media posts, banking transactions, high-value purchases, and online activities are now enabling tax authorities to monitor every small and major detail related to taxpayers and businesses.

Focusing on this theme, the Udaipur Tax Bar Association organized a special study circle meeting under its Platinum Jubilee Year celebrations, where tax experts held detailed discussions on new income tax laws, GST provisions, and AI-based monitoring systems.

Association President CA Deepak Aeran informed that during the first session, renowned Jaipur-based tax advocate Pankaj Ghiya addressed the gathering as the keynote speaker. He stated that the era when taxpayers could escape the department’s scrutiny is now over.

He explained that while AI is making work easier for traders and professionals, the Income Tax and GST departments are also closely monitoring revenue leakage through technologies such as Project Insight.

Advocate Ghiya also highlighted important legal provisions related to the GST Appellate Tribunal. He said that if appeals are not filed within the prescribed time limit, condonation of delay would only be possible through the High Court. He further clarified that once the GST department issues a show-cause notice, it remains confined to the specific issues mentioned in that notice. The first session was chaired by CA Keshav Malu.

Association Secretary CA Hatim Kankroliwala informed that in the second session, senior Jaipur-based Chartered Accountant Rajiv Sogani elaborated on various provisions and amendments under the new Income Tax Act 2025, effective from April 1.

He stated that although the government claims the new law has been drafted in a simpler and more convenient format, it still contains several technical and significant changes that tax professionals must carefully understand.

CA Sogani added that the government’s primary objective is now to increase revenue collection, and therefore several corrective mechanisms, including updated returns, have been introduced to reduce disputes. He advised professionals that while AI will undoubtedly become an important tool of the future, personal expertise and professional judgment will remain the true keys to success. The session was chaired by CA Dr. Nirmal Kunawat.

Among those present at the event were Association Vice President CA Arun Ratnawat, Treasurer CA Ankit Jain, President of Udaipur Tax Bar Charitable Society Advocate Deepak Prajapat, Secretary Mahesh Mandowara, Executive Members CA Pankaj Nevtiya, CA Girish Bohra, Rajesh Devpura, along with several senior chartered accountants, tax advocates, and tax experts from the city.

The program witnessed in-depth discussions on changes in tax laws and the growing digital surveillance system in taxation administration.