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Tax officers

AI, trust & 30,000 disclosures: How India’s tax officers are reshaping the system

Tax officers recognised for their longstanding efforts to modernise the department and drive voluntary compliance

AI, trust & 30,000 disclosures: How India’s tax officers are reshaping the system

New Delhi: The Income Tax Department marked its 166th Foundation Day with a focus on transformation, data-driven reforms and a renewed approach to taxpayer engagement. At a ceremony attended by Finance Minister Nirmala Sitharaman, officers were recognised for their longstanding efforts to modernise the department and drive voluntary compliance.

Chief Commissioner Surbhi Ahluwalia received special recognition for a career spanning over three decades. From leading field operations to managing complex litigation and policy reform, her contributions have shaped several arms of tax administration. As the department’s longest-serving media coordinator, Ahluwalia led its structured entry into social media, revamping how it communicates with taxpayers and handles grievances. She also played a key role in implementing official language reforms to make tax processes more inclusive.

Chief Commissioner Anurag Sahai was awarded the Certificate of Meritorious Service. His career includes leading administrative and infrastructure reforms, including the establishment of the Central Processing Centre in Bengaluru. He has served as Chief Vigilance Officer of Hindustan Aeronautics Limited and carried out India’s first equalisation levy survey in international taxation. Sahai also worked on simplifying exemption processes and represented India at international forums on tax and anti-corruption.

Director General Investigation Manoj Pandey was honoured for wide-ranging contributions during his service in the Income Tax Department, Union Public Service Commission, Department of Expenditure and Competition Commission of India. Among his achievements are setting up the Gandhinagar Income Tax Office within two months and conducting high-impact search and seizure operations in addition to contributing to antitrust investigations.

A special segment of the ceremony recognised the team behind the department’s nudge campaign, which used behavioural data to improve voluntary tax compliance on foreign assets. Joint Commissioner Sitesh Varma, Joint Commissioner Harshit Bansal and Income Tax Inspector Avnish Giri were lauded for encouraging over 30,000 taxpayers to declare foreign assets and income worth more than ₹1,089 crore.

“The Tax Administration has not just responded to change, we have driven it,” said Ravi Agarwal, Chairman of the Central Board of Direct Taxes. “From manual files to AI-driven insights, physical scrutiny to faceless assessments, and basic enforcement to a trust-based system,” he said, noting how officers across India had contributed to the shift.

Speaking about the nudge campaign, Agarwal said it used behavioural insights and transactional data to detect discrepancies such as undisclosed income, inaccurate deductions and high-risk claims. “Rather than launching complex compliance measures immediately, the system enables taxpayers to voluntarily review and update their filings,” he added. “This is enforcement with empathy, reflecting the department’s evolving mindset to trust first.”

The Chairman also announced that the new Income Tax Bill 2025 is being developed entirely in-house. “Just like the bill, these will reflect our shared commitment to clarity, simplicity, and taxpayer convenience,” he said, referring to the upcoming rules and procedures currently under preparation.

Agarwal concluded by acknowledging the consistent work of officers across 583 stations in India. “To every officer, every inspector, every tax assistant, every administrative team member—thank you. This day is yours.”

BI Bureau