AI in Indian Tax Governance: Addressing Low Tax-GDP Ratio and Evasion

• •India is exploring the integration of Artificial Intelligence (AI) into its tax administration system to enhance governance and efficiency.
• •The move aims to tackle persistent challenges such as a low tax-to-GDP ratio, currently at 16.36%, and significant annual revenue losses due to tax evasion.
• •Tax evasion is estimated to cause an annual revenue loss of approximately 4.3% for the Indian government.