₹ Smartकर – AI-Powered Tax Filing Assistant

Overview

Smartकर is an AI-driven tax computation tool that helps users choose the best tax regime, optimize deductions, and automate tax filing. It simplifies tax calculations for salaried individuals, professionals, and business owners by analyzing various income sources and applicable deductions.

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Key Features

• Tax Filing for All Categories: Supports Salaried individuals, Businessmen, Freelancers and Professionals. Allows user to securely upload financial documents.
• Multiple Income Sources: Handles Salary, Capital Gains, Dividends, Rental income, Business Profits etc.
• Tax Slab Classification: Determines applicable tax slabs based on user category.
• Regime Selection: AI suggests the best tax regime (Old vs. New) based on financial data.
• Income-Based Rebates: Determines applicable rebates based on tax slabs.
• AI-Driven Tax Optimization: Maximizes deductions, provides personalized tax-saving strategies, and suggests tax-saving recommendations.
• Anomaly Detection & Validation: Identifies incorrect entries and missing documents.
• Dynamic Questionnaire: Simplifies data collection with user-friendly, AI-driven questions.
• Tax Report Generation & Review: Previews tax summaries before submission.
• Future Automation: Planned API integration with government portals for direct tax filing.

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Tech Stack

• Frontend: React.js, Tailwind CSS
• Backend: Node.js, Express.js, MongoDB
• OCR & AI: Python, Flask, NumPy, Pandas, Tesseract OCR, TensorFlow, Scikit-learn, NLTK, spaCy
• Security: AES-256 Encryption, JWT Authentication
• Automation & PDF Generation: Puppeteer, Selenium (Planned Future Feature)

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Workflow

1️⃣ User Login & Authentication → Secure access using JWT & role-based control.
2️⃣ User Uploads Documents → AI extracts details from Form 16, 26AS, salary slips, and investment proofs.
3️⃣ AI-Powered Processing → Extracts income, deductions, investments, and rebates.
4️⃣ Dynamic Questionnaire for remaining income and employment details → User answers simple questions and selects a category: Salaried, Self-Employed, Freelancer, Business Owner, Other.
5️⃣ Tax Computation Engine → Calculates taxable income, deductions, and total tax.
6️⃣ Best Regime Suggestion (Old vs. New) → AI recommends the most tax-efficient option.
7️⃣ Anomaly Detection & Validation → Flags incorrect entries, missing documents, and inconsistencies.
8️⃣ Tax Report Generation & Review → Generates a tax preview for users to verify.
9️⃣ Future: Auto-Filing Integration → Plans API integration for direct filing with government tax portals.

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Prototype UI

Setup & Installation

Prerequisites

• Node.js (v16+), MongoDB, Python 3+
• Pip Packages: Flask, Tesseract-OCR, PyMuPDF, TensorFlow, Scikit-learn, NLTK, spaCy

Installation

1️⃣ Clone the Repository

git clone https://github.com/ananyagr02/SmartKar.git
cd SmartKar

2️⃣ Backend Setup

cd backend
npm install

Create .env:

PORT=5000
MONGO_URI=your_mongodb_uri
JWT_SECRET=your_jwt_secret

Start backend:

npm run dev

3️⃣ OCR & AI Service Setup

cd ml
pip install -r requirements.txt
python app.py

4️⃣ Frontend Setup

cd frontend
npm install
npm run dev

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🔗 API Routes

Backend API (Express.js)

Method	Endpoint	Description
POST	/api/auth/login	User authentication
POST	/api/upload	Upload & encrypt documents
POST	/api/process-ocr	Decrypt & send to OCR
GET	/api/tax-summary/:userId	Get tax computation summary

OCR & AI API (Python Flask)

Method	Endpoint	Description
POST	/ocr-process	Extract text & analyze tax details
POST	/ai/tax-optimization	AI-driven tax recommendations
POST	/ai/anomaly-detection	Detects inconsistencies & errors

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Security & Compliance

• End-to-End Encryption: AES-256 for documents, JWT for authentication.
• AI-Driven Fraud Detection: Detects anomalies, inconsistencies, and incorrect filings.
• Data Privacy: Users control data, ensuring compliance with data protection laws.

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Contributor

• Ananya Gaur