AI Tax Filing: Professionals Compare Claude to a CA

As more and more sectors integrate artificial intelligence (AI) into their everyday operations, certain individuals are using AI. It is to help simplify and streamline how they file their income tax returns (ITR). With the upcoming changes proposed under the Income-Tax Rules, 2026, India’s tax landscape could see major shifts. Many people are evaluating whether or not AI can improve both the overall ease of compliance with tax regulations. Also, make it easier to understand the process of completing taxes.

AI Becomes Your Partner in Filing Taxes

Akhil Sood, a senior leader at Amazon, recently shared his personal experience of using an AI assistant to file his Indian ITR while living in Washington, USA. According to Sood, the experience did not replace his professional advisor. Rather, it allowed him to navigate through the ITR process which he previously viewed as complicated due to his status as a Non-Resident Indian (NRI).

Sood states that the AI assistant provided him information about tax forms, different types of income from which to derive and characteristics necessary for verifying compliance prior to submitting the forms. He stated that what he learned from this experience was filed taxes as opposed to simply writing down information to fill out the forms.

“It felt like learning how to navigate the program versus haphazardly filling out forms,” Sood posted on social media.

Claude Handles Complex Tax Problems

Information security expert Uddeshya Kumar from Bengaluru has also provided an example. It is of how Anthropic’s Claude AI can help resolve complicated tax situations. “Claude” was very important in my ability to complete my tax return, as it reviewed my Form 16. It checked that the data corresponded to what was in the Annual Information Statement (AIS), identified discrepancies, dealt with the complications of changing jobs halfway through the year. It also corrected issues with the tax portal and assisted through the entire process of filing my tax return.

Uddeshya also provided a detailed prompt about how the tool would interact with the workflow, document types, verification methods and error handling. He described the experience as “having a chartered accountant sitting next to me.”

The Importance of This Trend

This ongoing trend of AI-assisted tax preparation is taking place at a pivotal point in time. The Indian tax system will undergo a massive overhaul with the Income-tax Rules, 2026. This will make major changes to annual disclosures, forms and compliance processes. It is aimed at improving the overall filing experience.

AI tools provide many individuals with immediate answers to questions about their documents, performing evaluations of their documents. Moreover, providing step-by-step support to reduce reliance on third parties and to enhance their financial literacy.

This change has been gaining a great deal of traction in the latest news on business. As AI continues to change traditional professional service industries that were predominantly supplied by humans.

The concern regarding privacy and security among social media users has not been diminished by excitement about AI. Critics believe that providing information like tax returns, PAN numbers and salaries to an AI could lead to security and privacy problems. Additionally, many users do not fully understand how their information is stored and/or used.

Experts point out that AI-generated outputs should be verified by a qualified, professional human being prior to their final submission. Particularly with regards to taxation and compliance with laws.

AI vs Human

This conversation illustrates a growing trend of AI becoming a powerful and growing resource for the purposes of document research, document review and the supporting of compliance activities. However, experts caution that while AI does improve efficiency and understanding. The end user (the tax payer) will always bear responsibility for accuracy of the document(s) submitted to tax authorities and other entities.

As technology continues to evolve and impacts the way the tax return process will work, there is the potential that the use of AI will become common in the tax return process. However most professionals continue to think of AI as a valuable resource but not a replacement for qualified human expertise.