Tax: Will the hassle of filing taxes finally end? A fully automated system is coming for large taxpayers..

A major digital transformation is underway in India's tax filing and government processes. The central government is working towards completely automating its tax system. As part of this initiative, the government is preparing to provide third-party access to the Application Programming Interfaces (APIs) of its tax portals. This means that companies will no longer have to repeatedly visit government websites to file taxes; their own systems will handle the process automatically.

AI to handle complex tax tasks.
The government has already provided API access for the Goods and Services Tax (GST) system. Now, reports suggest that similar facilities will soon be extended to direct taxes (CBDT) and customs. Sources familiar with the matter say this move will allow tax consulting firms and technology providers to develop new Artificial Intelligence (AI)-based tools.

Currently, large companies have to rely on various government portals for tax filing, responding to notices, and tracking legal cases. Although most returns are filed online today, many tasks, such as tracking tax appeals, still require manual checks across different systems. The government's new initiative will significantly reduce this human intervention, with technology handling the entire process.

Freedom from navigating multiple websites
The APIs released by the government will allow large taxpayers to directly connect their internal accounting systems to the government's tax ecosystem. The biggest advantage of this will be that consultants will be able to develop AI-powered systems that require minimal human effort.

For example, when an appeal is filed before the Income Tax Appellate Tribunal, taxpayers currently have to repeatedly visit the tribunal's website to check for updates. With API-based integration, such status updates will be directly integrated into the company's internal system. This will save time and minimize the chances of errors. India is moving towards real-time governance.
In the case of GST, APIs are already enabling companies to monitor the MSME status of their vendors. This helps companies ensure they comply with specific regulations, such as paying MSME dues within 45 days. Customs compliance is another area expected to benefit significantly from this new technology. Historically, the customs system was not fully integrated with GST, causing considerable difficulties for import-export businesses.

Consulting firm PwC has stated that it has already developed a technology solution using GST APIs. Prashant Agarwal, Tax Technology Partner at PwC India, says that if the government makes APIs available for direct taxes or customs as well, they will be able to integrate them into their existing applications. This would include features such as PAN validation, customs validation, return filing, and receiving government notices.

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