A journalist recently demonstrated how artificial intelligence can simplify personal tax planning, saving ₹44,860 in a single financial year through optimized investment strategies. By feeding income details, exemptions, and expenses into an AI-driven financial assistant, the journalist received tailored recommendations that aligned with both tax laws and long-term wealth goals.

The AI suggested a mix of traditional tax-saving instruments and modern options. Key strategies included maximizing deductions under Section 80C through contributions to the Public Provident Fund (PPF) and Equity-Linked Savings Schemes (ELSS), and leveraging National Pension System (NPS) contributions for an additional ₹50,000 deduction under Section 80CCD(1B).

The system also recommended restructuring health insurance premiums under Section 80D to ensure maximum allowable benefits, alongside housing loan interest deductions under Section 24(b).

Unlike conventional approaches that rely on human advisors or trial-and-error, the AI tool scanned multiple scenarios in minutes, balancing immediate tax savings with future wealth creation. It highlighted underutilized provisions and corrected overlaps—ensuring every rupee invested delivered maximum efficiency.

This case underscores how AI is transforming personal finance by democratizing access to smart tax planning tools, traditionally reserved for high-net-worth individuals. Experts believe that as AI becomes mainstream, millions of taxpayers could use it to improve compliance, boost savings, and reduce financial stress.