‘Kar Saathi’ Brings Simplified Tax Awareness To Citizens

The Income Tax Department has introduced “Kar Saathi” , an AI-powered chatbot designed to help citizens understand the provisions of the proposed New Income Tax Bill, 2025 through simplified explanations, interactive responses and multilingual taxpayer awareness support.

The digital initiative forms part of the government’s wider effort to make India’s direct tax system easier to understand and more accessible to ordinary taxpayers, students, professionals and small businesses. Officials said the chatbot has been developed under the nationwide outreach campaign “Prarambh 2026” to improve awareness regarding the proposed legislation and reduce confusion arising from complex legal terminology.

According to the department, “Kar Saathi” functions as a virtual taxpayer assistant capable of responding to queries related to the New Income Tax Bill in a simple and user-friendly manner. The chatbot explains major reforms proposed under the legislation and guides users through provisions related to tax procedures, compliance requirements and taxpayer safeguards.

Officials said one of the key objectives behind the initiative is to simplify public understanding of India’s direct tax framework, which has often been viewed as lengthy and difficult to interpret due to legal and technical language. Through conversational interaction, the chatbot attempts to break down complicated provisions into simpler explanations that can be easily understood by citizens without specialised tax knowledge.

The platform provides awareness about several major reforms proposed under the New Income Tax Bill, including the restructuring and simplification of direct tax laws. Users can seek information about procedural changes, taxpayer rights, legal safeguards and modernised administrative provisions included in the proposed framework.

Among the key reforms highlighted through the chatbot is the proposed reduction in legal complexity. Officials explained that the New Income Tax Bill seeks to reduce the number of sections from 819 to 536 , rules from 511 to 333 and forms from 399 to 190 . The department said these changes are aimed at improving readability, reducing ambiguity and making compliance easier for taxpayers.

The chatbot also clarifies that the proposed restructuring does not involve any change in existing tax policy or tax rates. Instead, the reforms focus on simplification, consolidation of provisions and improved accessibility of tax laws.

According to officials, “Kar Saathi” provides information on important areas such as TDS provisions, advance tax rules, surveys, search procedures and digital asset regulations . The chatbot is designed to explain how these provisions may function under the proposed framework while also highlighting safeguards intended to protect taxpayer rights and ensure transparency in tax administration.

The platform further spreads awareness regarding the guiding principles behind the proposed legislation through the acronym “SIMPLE” , introduced by the Finance Ministry. The acronym represents streamlined structure, integrated provisions, minimised litigation, practical and transparent reforms, adaptability and efficient tax administration.

Officials said the chatbot has been designed not only as an information tool but also as a citizen engagement initiative intended to improve participation in the awareness process surrounding the New Income Tax Bill. By providing instant responses to queries, the platform is expected to reduce dependence on technical interpretation and make tax-related information more approachable for the general public.

To support broader outreach, the Income Tax Department has also introduced multilingual communication materials alongside the chatbot initiative. Standardised brochures and awareness content have been prepared in English, Hindi and ten other Indian languages to ensure accessibility across different regions and linguistic groups.

Authorities said the combination of AI-driven assistance and multilingual outreach is intended to improve last-mile dissemination of information and help citizens understand the proposed reforms more effectively. Officials believe the initiative could particularly benefit first-time taxpayers, students and individuals living in smaller towns and rural areas where access to professional tax guidance may be limited.

The New Income Tax Bill, 2025 aims to create a more citizen-friendly and transparent direct tax framework by simplifying provisions, reducing duplication and encouraging voluntary compliance through clarity and easier interpretation.

Officials said digital platforms such as “Kar Saathi” are expected to play an increasingly important role in taxpayer education and awareness as India moves towards technology-driven governance and simplified public service delivery systems.

The department added that the chatbot initiative reflects the government’s broader push towards integrating technology into public administration to improve efficiency, accessibility and citizen participation in understanding key legislative reforms.