Tax Refund- AI to Guide Taxpayers on How Much Tax to Pay, Know How

Income Tax Refund: Just hearing the words ‘income tax return’ can make anyone’s heart race. People often find themselves lost in a sea of forms and regulations. In the end, many choose to hire a professional who demands a significant fee to handle their return.

With these challenges in mind, the Income Tax Department has introduced a new AI-driven chatbot named ‘Kar Saathi’, designed to streamline ITR filing according to the updated rules and forms under the Income Tax Act, 2025. This effort is part of the Income Tax Department’s ‘PRARAMBH 2026’ initiative, which seeks to make tax filing simpler, quicker, and more accessible for millions of taxpayers under the new Income Tax Act, 2025.

How can you get assistance from ‘Tax Sathi’?

‘Tax Saathi’ is an AI-powered chatbot that is available around the clock on the official e-filing portal. It provides real-time answers to your inquiries. It assists users in selecting the appropriate form based on their income and profession, clarifies deductions, and walks them through the entire filing process step-by-step. This means you can file your taxes without needing to depend on an expert or CA.

The chatbot features over 2,200 FAQs and guidance to clarify the rules under the new tax act in straightforward language. It also helps you spot potential filing mistakes and rectify them, helping you avoid notices or penalties. Now, you can file your tax return punctually, without any help or fees.

Who stands to gain?

‘Tax Saathi’ will be particularly beneficial for first-time filers who are anxious about the regulations. It will also provide valuable information to salaried employees regarding investments and tax brackets. Additionally, small investors and business owners will find it useful, as they will no longer need to consult experts for their tax-related queries.

How to use it?

To use ‘Tax Sathi’, first of all you have to visit the official website of Income Tax Department incometax.gov.in .
You’ll see a chat bubble or robot-like icon in the bottom right corner of the homepage. Click on it to start a conversation.
It does not require login for general tax related questions.
You will need to login with your PAN to access information like tax notices or personal refund status.
It can respond in both English and Hindi languages.

Meanwhile The Income Tax Department has kicked off the income tax return filing season for the assessment year 2026-27, which corresponds to the fiscal year 2025-26. They’ve rolled out Excel utilities for ITR-1 and ITR-4, so eligible taxpayers can start filing their returns right away.