I-T department sends notices using AI to tax evaders for fake donations

The Income Tax (I-T) department has sent notices to tax evaders after reassessing several income tax returns, especially those in which deductions have been claimed for donations made to charitable trusts and political parties during FY19.

Paras Savla, partner at KPB & Associates, a chartered accountancy firm, said, “Using artificial intelligence (AI), the I-T department has identified people whose ratio of donation against income earned is skewed for the financial year 2018-19.”

Hundreds of notices were issued to salaried individuals from March 20 to June 10 this year, according to a report in Moneycontrol.

One can claim deductions of 50 per cent to 100 per cent for donations to political parties and charitable trusts under Section 80G.