ITR Filing Before Sept. 15 Deadline: Step-By-Step Guide To Using AI Tax Advisors

As the Sept. 15 deadline to file income tax returns for financial year 2024-25 approaches, now is the time to gather all the necessary documents to ensure your ITR is filed on time, if you haven’t done it already.

These days, filing taxes has been made easier with the availability of a wide range of services. These include conventional chartered accountants or the online platforms offering tax filing services. A third option is also gaining popularity when it comes to handling finances: the use of artificial intelligence (AI) tools.

Many people prefer to use free chatbots such as ChatGPT to seek investment advice and simplify their ITR and other financial processes.

These AI-powered tax advisors can help in understanding deductions, investment declarations and help guide you through the ITR process quickly.

While AI is known to do its job in seconds, it is still recommended not to wait until the last day. As the deadline approaches, the tax portal is likely to see high traffic. This can lead to glitches or delays and eventually cost you in the form of penalties.

1.    Select your preferred AI tool, such as ChatGPT, Grok, or Google Gemini.

2.    Try to use the model that has access to real-time information for an accurate understanding of rules.

3.    As AI can sometimes throw up inaccurate results, it is best to share specific tax rules or changes with it and ask for guidance based on the information shared by you. This will ensure accuracy.

4.    If you are a salaried individual, you can share the information from the tax department's website: https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1

5.    Give AI this prompt: ‘Understand these rules and regulations and guide me through my ITR process.'

6.  Once these steps are done, AI will likely ask for information, such as whether you are salaried, your income sources and the documents you already have.

7.  This will help you gauge what documents or other information you need before starting to file your ITR. These likely include Form 16, PAN card, Form 26AS, etc.

8.  Based on information in ‘step 4’ and your personal details, you can ask AI which ITR form you should choose. You can also ask what deductions and exemptions you qualify for.

9.  Then, give this prompt: 'Steps To File ITR Under Form (whatever you are eligible for).'

10. The AI bot will likely share the tax department’s ITR portal with you and outline the steps for your ITR process.

11. Follow the steps. If you encounter an issue, you can cross-check the steps with other AI bots or go through the tax department’s website to understand the rules.

12. If you still face an issue, it is recommended to consult with a certified professional to avoid any penalty due to inaccurate reporting.