To ease the burden of filing income tax returns, the Income Tax Department of India has introduced 'Kar Saathi', an AI-powered chatbot integrated into the newly revamped Income Tax portal. This chatbot aims to provide taxpayers with instant assistance on queries related to the income tax return (ITR) filing process. With features like 24/7 support, simplified explanations of complex tax terms, and step-by-step guidance, Kar Saathi seeks to minimize the dependency on tax experts and streamline compliance for users. The initiative addresses the challenge of information asymmetry in the tax ecosystem, offering a unified platform for accessing all key services, including forms and e-verification. By guiding users through the filing process and flagging potential errors, the chatbot aims to reduce the risk of defective returns and associated penalties. This shift represents a move towards a more proactive compliance framework, focusing on prevention rather than penalties.