The Union Budget 2025-26 introduces groundbreaking changes to India's tax system, leveraging artificial intelligence for faster assessments. Key highlights include:
1) Real-time ITR processing using AI algorithms
2) Three new AI Centers of Excellence with a ₹500 crore outlay
3) Simplified Income Tax Act operating on "trust first, scrutinize later" principle
4) Income tax exemption limit raised to ₹12 lakh under the new regime
5) Introduction of three-year block assessments for transfer pricing issues
These AI-driven reforms aim to streamline tax administration, reduce processing times, and create a more taxpayer-friendly system. The government's focus on AI and deep tech demonstrates its commitment to positioning India as a leader in technological innovation.
Source: EY India