India’s tax system is being reshaped by AI and Big Data. Through Project Insight, the Income Tax Department now tracks bank data, investments, and lifestyle transactions in real time, flagging anomalies and ensuring compliance.

India's Income Tax Department leverages AI and data analytics, including Project Insight and the Annual Information Statement (AIS), to monitor financial transactions, especially high-value ones. This blog explains how the system works, which transactions are watched, the implications for taxpayers, and how to ensure compliance in this new technological era.