India's Income Tax Department launched an AI-powered chatbot called "Kar Saathi" on April 2, 2026 [2], to assist taxpayers with filing returns [1].
The tool is designed to simplify tax compliance for millions of taxpayers [4] as they adapt to the newly introduced Income Tax Act 2025 [1]. By automating guidance, the government aims to reduce litigation and improve voluntary compliance across the country [5].
Kar Saathi is integrated into the department's revamped digital platform [1]. The chatbot provides 24/7 availability [4] to help users understand the complexities of the new tax laws, and navigate the process of filing for the 2026-27 season [3].
The introduction of the AI tool coincides with a broader effort to modernize India's taxation system. The Income Tax Act 2025 [1] represents a significant overhaul of the legal framework governing direct taxes — a transition that the government hopes to smooth through digital assistance.
Taxpayers can access the chatbot through the official Income Tax Department website. The AI is intended to act as a digital companion, providing immediate answers to common queries, and guiding users through the specific requirements of the updated tax code [5].
“The tool is designed to simplify tax compliance for millions of taxpayers”
The rollout of Kar Saathi signals a shift toward AI-driven governance in India's fiscal administration. By deploying a 24/7 digital assistant to interpret the Income Tax Act 2025, the government is attempting to lower the barrier to entry for tax compliance and reduce the reliance on human intermediaries for basic procedural queries.
