Using ChatGPT or Claude AI to file ITR? Experts warn it may not be as reliable as you think

As income tax return filing season is underway, many working professionals are turning to AI tools and sharing their experience on social media. They say artificial intelligence tools like ChatGPT and Claude AI are helping them understand complex tax terms, dealing with portal glitches, and even identifying mismatches in Annual Information Statement (AIS).

In one such viral LinkedIn post, Akhil Sood, a senior Amazon executive who lives in Washington, shared that he filed his tax return with the help of an AI assistant. He noted that as a Non Resident Indian (NRI), tax filing has always felt more complicated “than it should be”.

However, the question of how reliable AI truly is remains unsettled. While some claim that it makes work faster. others point out that it can still make mistakes and cause issues in tax returns. As four experts told Mint, AI may be useful but not yet something you can fully rely on without human checks.

Why using AI to file ITR may cause issues?

A major concern related to using such chatbots for filing ITR is that general AI is designed to mimic human conversation, not to process rigid financial regulations, said Archit Gupta, CEO of Cleartax.

“Because there is no structured compliance engine running in the background, the logic can shift. It is very common to input the exact same document twice and get different calculation results. Since these platforms don't offer any accuracy guarantees, the taxpayer is left carrying all the risk if a calculation error triggers a notice,” he noted.

Another issue flagged by Alay Razvi, Managing Partner at Accord Juris is that AI tools like ChatGPT and Claude are not built for Indian tax laws. Hence, these tools can put a taxpayer's personal data at risk and at times also generate content based on outdated data.

Can AI capture all ITR-related details accurately?

AI tools cannot capture all income sources, deductions, and reporting requirements accurately, the experts noted.

"AI systems struggle with complicated tax situations like having multiple types of income (salary, house rent, stock market profits, business income), foreign income from other countries, special deduction rules under sections 80C, 80D with specific conditions, and capital gains from many different stock or property transactions,” Razvi said.

However, Pallav Pradyumn Narang, Partner at CNK, had a slightly different view. He said AI tools are good at capturing data, but tax filing still needs proper context and historical understanding. Without it, AI may record information correctly but fail to apply the right tax rules or present it accurately.

Can taxpayers seek leniency if AI-led ITR filing leads to scrutiny?

No. The legal responsibility for the return remains with the taxpayer. Reliance on AI is unlikely to be a defence against a tax demand, penalty, or scrutiny, though it may sometimes support a claim of a bona fide mistake, said Raheel Patel, Partner at Gandhi Law Associates.

"General AI tools do not hold an ERI license, meaning they are not authorized by the government to handle or process income tax filings for users. Because they lack this official status, they carry no accountability for errors, and you cannot use advice from a general chatbot to get penalties or interest waived," Gupta said.

Privacy implications of using AI to file ITR

Taxpayers must be cautious about uploading PAN, salary slips, bank statements, and other sensitive documents to AI platforms, the experts advised.

“Such data may be stored or processed by third parties, creating privacy and data-security risks. Redacting personal information wherever possible is advisable,” Patel said, noting that it is definitely something taxpayers should avoid.

Beyond personal risk, it is also a way to violate your own employer's data security policies, Gupta noted.

The due date to file ITR for most individual taxpayers who do not require a tax audit is July 31, 2026.