My Experience of digitalisation
I have spent many years of my tax consulting career in relation to the Indian taxation industry, wherein I was assisting many individuals to file their income tax returns. Throughout the journey, I have realized that the process of filing returns has undergone significant changes in terms of procedure due to digitalization. Earlier, returns were being filed based on self-assessment according to the individual’s interpretation. This would result in errors, excess claim of refund, as well as misreporting of details/ income. However, with the extent of digitalisation, there has been a major shift in the process wherein filing of returns has become automatic and precise, reducing human error and manipulation. Using taxpayers’ unique identification number, data is fetched from multiple sources such as banks, mutual funds, stock exchanges, the Government, and employers, due to which returns are filed accurately with appropriate documentation.
To explain using a simple example, earlier when I was filing a salaried employee income tax return, I used to collate the information from Form 16 (issued by employer which is an annual document containing salary details), verify bank statement for interest earned, seek details of capital gain (due to sale of investments) from that individual and finally compile all this information into return manually to arrive at final tax payable. However, at present, when I log in to https://eportal.incometax.gov.in/iec/foservices/#/login, the income tax portal itself calculates all this data automatically and provides the final tax payable. It also allows us to edit the information if needed, with the caution message displayed if we reduce the income by more than 20%. With these changes, taxpayers will not alter the income values and will mostly file the returns with the correct details as already displayed by the system.
Due to this digitalisation, the chances of tax evasion and lack of transparency have been reduced. Returns filed are now reliable and effective, even though many people still feel that the process is stringent. Even now, there is still dependency on third-party consultants and Chartered Accountants for confirmation of the correctness of the data entered into the return. However, honest taxpayers who have been filing accurate data on the returns earlier as well are finding these improvements to be very helpful.
Despite all the technological advancements made so far, there is still room for improvement. To improve further, single window platforms and AI-powered tools can be implemented. The income tax portal can even suggest suitable investment models based on the income level and the category of the taxpayers. Chatbots can be introduced to clarify doubts while filing returns.
Comment on GDPR
Rapid digitalisation comes with the biggest threat to data privacy, misuse of personal information, as well as security breaches. In this context, the General Data Protection Regulation, which was implemented in the European Union in 2018, had a global impact. This has given influence to countries like India to bring out data protection standards. Although GDPR is not directly applicable to India, reference to the same has been taken in drafting the Digital Personal Data Protection Act, 2023 (DPDP Act, 2023), which emphasises individual control over personal data and accountability among data processors.
In my field of work, data is being securely transmitted from the primary sources to the returns, due to which there is no leakage of data. Over the years, I have seen growing importance being given to secure data handling, consent-based information sharing, and responsible digital practices. While we are still experiencing cyber fraud, it can be said that the regulation towards data protection is becoming stricter, aiming at data protection.
Comment on ChatGpt
Given that my field of work is tax consultancy, I have explored the ChatGPT service at https://chat.openai.com by asking a few questions related to Indian taxation and compliance. While ChatGPT was able to provide general answers and simplified overviews on topics like income tax returns, Goods and Services Tax, and similar tax compliance, there was a lack of interpretation, and it felt more like a plain reading of the Act. I had expected the same since ChatGPT itself states that it is not designed for legal interpretation or advice and specifically comes with a disclaimer. It can explain a general process or concept that helps in basic understanding. However, it should not be relied on for official guidance or decision-making making especially in the field of taxation. Overall, I believe that the ChatGPT service has high potential and works as a great learning tool. It can assist in research, summarisation, and communication. However, when it comes to professions such as tax, legal, and medicine, it cannot override expert advice or an opinion and should be strictly used with caution.
Self Evaluation
With this module, I have made a great effort in understanding the General Data Protection Regulation as well as the ChatGPT service. Overall, I learnt that the movement towards digitalisation cannot be avoided, and hence everyone should be aware of the places where they are giving consent on the usage of the data, and moreover, should be aware of how the data sharing can affect their lives. Also, along with the ChatGPT service, there are a lot of AI learning tools available online, which act as great learning tools for research or studies. However, there is a chance that the dependency on such tools becomes more, that people stop using their thinking to make a decision.
Also, it is to be noted that these AI learning tools cannot replace humans in many fields, irrespective of the knowledge database that they possess. Since thinking of all human beings cannot be fed into the systems, the result of these tools can never be matched with humans. While it is agreed that the speed at which these tools give answers is much faster than what we do, it should only be limited to basic learning or understanding, and not to the level of interpretation. As explained earlier, some professions like taxation, legal, and medicine are not just memory tasks but highly involve interpretation and hence cannot be replaced. Also, the video links available on the page offer valuable insights into the AI journey.
Going forward, I realize I need to learn more about how AI models are trained, how to critically assess AI-generated content, and how to integrate digital tools responsibly in professional work without compromising accuracy or compliance.
Comments on fellow students’ articles
1.I have posted following comment on https://blogi.savonia.fi/edris/digi-society/
Hi,
The blog effectively covers all key aspects clearly and concisely. The observation that AI is becoming a survival skill rather than a luxury is both accurate and well-articulated. The discussion around digitalisation enabling remote teams also reflects the shift toward a more flexible, tech-driven work environment. While ChatGPT has its advantages and limitations, the blog rightly highlights that it serves well as a starting point for information, but should not be relied upon as a final authority, especially in specialized fields. Overall, the insights presented are balanced, relevant, and timely.
2.I have posted following comment on https://blogi.savonia.fi/jaanakristiinahenriksson/digi-society/
The blog presents its points clearly and simply, capturing the essence of the topic. The statement about AI potentially replacing certain aspects of human work—but not the moral and ethical judgment behind it—is particularly thoughtful. Your observation on using ChatGPT for basic understanding, while cautioning against relying on it for medical interpretations, is absolutely correct.
Additionally, the shift from paper-based to digital records in healthcare is indeed a significant advancement in terms of efficiency and data retention. However, as you rightly pointed out, it also raises valid concerns about data privacy and security. Overall, the blog offers a balanced and thoughtful perspective on the intersection of AI, digitalisation, and ethical responsibility.