India introduces AI assistant Kar Saathi to ease tax compliance under new Income Tax Act

India’s tax system advances further into digitalisation with the launch of Kar Saathi, an AI-driven helper aimed at simplifying tax filing and compliance for taxpayers amid the implementation of the new Income Tax Act, 2025.

India’s income tax system has moved further into the digital mainstream with the launch of Kar Saathi, an artificial intelligence assistant designed to help taxpayers navigate filing and compliance. According to the Income Tax Department’s announcement, the tool was introduced as part of a broader effort to make direct tax services easier to understand and access, especially for users who do not want to work through dense forms and instructions.

The rollout forms part of PRARAMBH 2026, an outreach campaign tied to the new Income Tax Act, 2025, which came into force on April 1, 2026. Reporting by LiveMint and Moneycontrol said the department positioned Kar Saathi as a way to smooth the transition to the new framework and reduce friction for taxpayers adapting to the revised rules.

Kar Saathi is available through the department’s updated digital tax platform and is intended to provide round-the-clock help with common queries. The assistant uses natural language processing, according to Financial Express, allowing users to ask questions in ordinary language and receive context-aware guidance on issues such as return filing, e-verification, compliance support and grievance handling.

The move reflects a wider push by the government to modernise tax administration through technology. Analysts and tax-focused publications have described Kar Saathi as particularly useful for first-time filers and salaried taxpayers, while the department has presented it as part of a one-stop digital service model aimed at making tax compliance less intimidating and more accessible.