Role of Artificial Intelligence in Enhancing Tax Compliance and Planning Efficiency among Salaried Class in India

Artificial Intelligence (AI) is increasingly influencing the way taxation is administered and managed in India. Over the past decade, the Indian tax system has adopted several digital reforms such as online filing, pre-filled returns, and faceless assessments. Along with government initiatives, private AI-based tax platforms have made tax compliance easier for salaried employees. This study examines the role of Artificial Intelligence in improving tax compliance and enhancing tax planning efficiency among salaried taxpayers in India. The research is based on secondary data collected from government reports, academic studies, and fintech industry publications. The findings suggest that AI reduces filing errors, improves accuracy, supports quick comparison of tax regimes, and encourages voluntary compliance. However, concerns related to data privacy and transparency remain important. The study concludes that AI has simplified routine tax compliance for salaried individuals and has contributed to a positive shift in tax-related behaviour.