Filing ITR soon? New ‘Kar Saathi’ AI chatbot is here to help you

The Income Tax Department on April 2 unveiled a revamped digital platform along with ‘Kar Saathi’, an AI-powered chatbot designed to simplify taxpayer services and enhance compliance under India’s evolving tax framework. Positioned as a central feature of the upgraded Income Tax website, Kar Saathi aims to provide seamless, real-time assistance for a wide range of direct tax-related queries.

According to the department, the new website has been built with a focus on improved usability, faster navigation and consolidated access to tax information. Kar Saathi functions as an intelligent virtual assistant, enabling taxpayers to understand rules, file returns, and resolve queries without relying heavily on intermediaries. The department described it as a “one-stop solution” for accessing tax-related services and guidance.

The rollout comes ahead of the Income Tax Return (ITR) filing season, with early user reactions highlighting cautious optimism. While some users welcomed the upgrade, others expressed concerns about platform stability, an issue that has affected previous iterations of the tax portal.

The concept of Kar Saathi was first outlined by Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal during the launch of the ‘PRARAMBH’ initiative—short for Policy Reform and Responsible Action for Mission Viksit Bharat. He noted that the AI-enabled chatbot would offer round-the-clock assistance via the department’s website, marking a shift towards a more technology-driven tax administration.

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Kar Saathi is a key pillar of the government’s broader strategy to support the transition to the new Income Tax Act, 2025, which comes into effect from April 1, 2026. The chatbot is designed to provide contextual guidance on updated rules, forms, and compliance requirements, thereby reducing complexity and improving taxpayer experience.

The PRARAMBH initiative itself reflects a significant structural overhaul. The number of rules has been rationalised from 510 to 333, while forms have been reduced from 399 to 190—nearly a 52% cut. Officials estimate that these changes could eliminate compliance requirements for over six crore transactions. To support this transition, the CBDT has prepared more than 2,200 FAQs and detailed guidance notes covering 186 forms.

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In addition to Kar Saathi, the government has deployed a range of taxpayer support tools, including tutorial videos, multilingual educational content, and public engagement campaigns through platforms like MyGov. These efforts are intended to improve awareness and accessibility across diverse taxpayer segments.

Officials emphasise that the broader reform is anchored in a “citizen-first” philosophy, aiming to make tax administration more transparent, responsive, and efficient. By integrating AI-driven tools like Kar Saathi with systemic simplification, the government is seeking to reduce disputes, encourage voluntary compliance, and deliver a more intuitive tax ecosystem.

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