AI is double-checking your tax returns before refunds hit your account
India's Income Tax Department is now using AI to scan income tax returns for FY 2024-25.
This "nudge" system cross-checks data from your PAN/Aadhaar, bank accounts, and Form 16—and may also use information from crypto platforms—before or during refund processing.
It's on the lookout for things like unreported big transactions (over ₹10 lakh) or suspiciously high deductions.
What actually happens if there's a mismatch?
If the AI spots something odd—like unexplained capital gains, foreign assets, or donations above ₹2 lakh—it'll ping you with an email or SMS alert.
These aren't official notices, just friendly reminders to fix things yourself by December 31, 2025.
The whole idea is to make filing smoother and cut down on mistakes.
Why are refunds taking longer this year?
Because of these extra checks, refunds may be delayed by several months.
Even small errors can put your refund on hold and add some stress—especially for salaried folks.
If you want to avoid hiccups next time, tools like TaxBuddy can help double-check your info before you file.