Using AI for ITR filing? A responsible step-by-step guide.

Use AI as an assistant—not as the person responsible for your return.

AI can explain tax terminology, organise a document checklist, summarise a Form 16, help classify questions and review a draft for missing items. It cannot guarantee that your facts are complete, the selected ITR form is correct or the final computation follows every current rule.

The taxpayer remains responsible for the return submitted with their PAN. Therefore, every AI suggestion must be checked against source documents, the official income-tax portal and the law applicable to the relevant assessment year.

Protect personal and financial information while using AI.

• Do not upload unredacted PAN, Aadhaar, passwords, OTPs, bank account details or portal credentials to an unknown public AI service.
• Remove names, identification numbers, addresses, account numbers and QR codes before asking general questions.
• Use AI for explanation and structure; use trusted software or a professional process for actual data handling.
• Never share an income-tax portal OTP with any AI tool or unverified person.
• Keep a copy of the documents and workings used for the final return.

Collect the complete evidence before starting the return.

• PAN and Aadhaar, with linkage status checked.
• Form 16 from every employer during the financial year.
• Annual Information Statement (AIS), Taxpayer Information Summary (TIS) and Form 26AS.
• Bank and fixed-deposit interest certificates.
• Home-loan interest certificate and rent/HRA evidence where relevant.
• Capital-gains statement from brokers, mutual funds and property records.
• ESOP or RSU grant, exercise, allotment and sale statements.
• Foreign-asset, foreign-income and foreign-tax documents where applicable.
• Proofs for deductions and tax payments claimed.
• A pre-validated bank account for refund credit.

Form 16 is a starting point, not the complete return. Interest, dividends, property income, capital gains, freelancing income or foreign assets may not be fully covered by the employer’s certificate.

Begin with AIS, TIS and Form 26AS—not with assumptions.

The tax department already receives information from employers, banks, brokers and other reporting entities. Compare each reported item with your own records. If an AIS item is incorrect, use the feedback or dispute facility; do not simply omit it without explanation.

Place every income item under the correct head.

Incorrect classification can change the ITR form, tax rate, deduction treatment and disclosure schedules. AI can help explain the categories, but your documents decide the classification.

Choose the ITR form from your complete facts.

A simple salary case may qualify for ITR-1 subject to the current eligibility conditions. Capital gains, ESOP shares or foreign assets generally require ITR-2 for a person without business income. Business or professional income can require ITR-3 or, where conditions are satisfied, ITR-4.

Always read the official eligibility and exclusion conditions for the assessment year before proceeding.

Choose the tax regime by computation, not by habit.

The new regime is the default and generally offers lower rates with fewer deductions and exemptions. The old regime may be beneficial when eligible claims such as HRA, section 80C, section 80D and home-loan interest are substantial.

1. Compute income under both regimes using the same complete income data.
2. Include only deductions legally available under each regime.
3. Consider special-rate income, such as certain capital gains, separately.
4. Use the official income-tax calculator or verified return utility.
5. Record why the selected regime is more suitable for the year.

What was declared to payroll may not always be the final choice for a salaried taxpayer, subject to the applicable filing rules and due date. Taxpayers with business income have additional restrictions and should obtain specific advice.

Stop and obtain a detailed review when the facts are not simple.

ESOPs and shares

ESOPs can be taxed at exercise as a salary perquisite and again at sale only on the subsequent capital gain. The fair market value considered at exercise generally becomes relevant to the cost for capital-gains computation. Listed, unlisted and foreign shares can have different holding-period and rate rules.

Foreign assets and income

Foreign shares—including shares of a foreign parent received through an ESOP or RSU plan—may require disclosure in Schedule FA. Foreign dividends and foreign tax credit can require additional reporting, including Form 67 where applicable. Missing foreign-asset disclosure can have serious consequences.

Multiple employers, property, business or large transactions

Multiple Form 16s, house-property losses, intraday or derivative activity, crypto-assets, partnership income, tax audit, non-resident status and carried-forward losses should not be handled through generic AI instructions alone.

Complete the official filing sequence carefully.

1. Log in only through the official income-tax e-filing portal.
2. Confirm the assessment year and taxpayer profile.
3. Select the correct return form and filing section.
4. Review pre-filled data; do not assume it is complete or correct.
5. Enter and validate all five heads of income and eligible deductions.
6. Compare old and new regime where permitted.
7. Review tax, interest, fee, TDS/TCS, advance tax and self-assessment tax.
8. Pay any balance through the authorised process and ensure the challan is reflected.
9. Preview every schedule and disclosure before submission.
10. Submit and e-verify within the period prescribed on the portal.

A return that is submitted but not validly e-verified within the allowed period can be treated as not filed. Keep the acknowledgement and final computation.

Track the return until the process is complete.

• Confirm successful e-verification and retain the acknowledgement.
• Monitor processing status and refund credit.
• Ensure the refund bank account is pre-validated and PAN/Aadhaar requirements are satisfied.
• Read every communication in the portal before responding.
• If a mistake is found, check whether a revised or updated return remedy is available.
• Store the final return, computation, challans and supporting records together.

Before accepting any AI-generated filing answer

• The assessment year and applicable law are clearly stated.
• The answer is reconciled to your source document.
• The suggested ITR form has been checked against official eligibility rules.
• All AIS and Form 26AS entries have been addressed.
• Special-rate income and foreign disclosures have been separately considered.
• No personal credentials, OTP or unredacted identity document was shared.
• The final tax and filing output was reviewed in the official utility or by a competent professional.