Tax Assistant : AI for Automated Replies & Litigation ResearchRecord inserted or updated successfully.
AI & Accounting

Tax Assistant : AI for Automated Replies & Litigation Research

Author : CA Harshali Salvi

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The Problem with Traditional Tax Workflow

AI tools can sometimes invent fake case laws or incorrect legal points.

This is known as AI hallucination, and in the legal domain, it can lead to serious consequences.

At the same time, drafting replies to notices is often a repetitive, manual task that follows a similar structure — yet consumes valuable time. With no centralized system for case law search or section understanding, the workflow remains slow and inefficient.:

  1. Scattered case law references with no unified search
  2. Time-consuming, repetitive drafting of formal replies
  3. AI tools may hallucinate — generating fake case laws or incorrect advice

Hallucination in AI means confidently producing incorrect or made-up legal content — a serious risk in professional work.


The Solution: AI Assistant for Tax Professionals and Learners

To solve these problems, I built an AI-based assistant using Google Gemini, Streamlit, and a case law search chatbot (ChromaDB).

This tool helps users:

  1. 🔍 Look up any Income Tax section, with full text
  2. 💡 Get plain-language explanations of legal provisions
  3. ⚖️ Retrieve semantically relevant case laws
  4. ✍️ Draft formal replies to tax notices, petitions, and letters
  5. 📄 Download all outputs as Word documents
  6. 🔐 Save chat history locally with encryption for privacy


🛠️ How It Works

Behind the scenes, the assistant uses:

  1. Google Gemini 1.5 – for generating accurate legal language
  2. ChromaDB – vector database that finds case laws based on meaning
  3. Python & Streamlit – clean, simple web UI
  4. Fernet Encryption – to securely store chat history
  5. Custom prompt tuning – to avoid hallucination and enforce legal tone




In conclusion, this AI-powered assistant is more than just a chatbot—it represents a smarter way forward in tax practice. By combining reliable Income Tax Act data, AI-assisted drafting, semantic case law search, and a user-friendly interface, the tool helps simplify the complex and time-consuming tasks faced by professionals every day. It offers a secure, scalable, and practical solution for anyone working with tax matters—whether they're Chartered Accountants, consultants, students, or individuals.

As the tool continues to evolve, the vision is to create a trusted AI assistant that reduces manual effort, minimizes the risk of incorrect or hallucinated legal content, and empowers users to interact with tax law confidently and efficiently. This is a step toward making tax practice faster, more accurate, and truly accessible.