A Digital Disruption with Accuracy & Data Privacy Risks, ETCFO
India’s ultra-low-cost digital tax filing module by JioFinance has drawn immediate attention from tax professionals, who broadly agree that the service promises convenience and affordability for millions of taxpayers, but say it raises concerns around filing accuracy, data privacy, and market disruption.
Experts claim that such platforms are suitable primarily for simple, salaried individuals, but could lead to errors in cases involving capital gains, business income, foreign assets, or complex deductions, potentially triggering penalties, scrutiny, or disputes.
Beyond accuracy, specialists stress the risks of collecting and storing sensitive financial data in the absence of finalised Data Protection and Digital Privacy (DPDP) regulations. Large-scale adoption could inadvertently allow profiling or cross-selling of taxpayer information, raising both ethical and regulatory questions.
Experts also caution that aggressive pricing may disrupt smaller tax platforms and independent practitioners, consolidating services under a few dominant digital players and limiting consumer choice. At the same time, they note that Chartered Accountants (CAs) are unlikely to be replaced; rather, their role may evolve from routine filings toward high-value advisory, litigation support, and complex tax planning, areas where human judgment cannot be replicated by digital models.
The consensus is clear: JioFinance’s move is a digital disruption, but its broader impact on accuracy, data security, and the traditional CA ecosystem must be carefully monitored.
Taxpayers in India can now file and plan their taxes more easily through a new module on the JioFinance App. Developed in partnership with TaxBuddy, an online tax filing and advisory platform, the module provides both self-service and expert-assisted options. Filing starts at just Rs 24 for self-service and Rs 999 for expert-assisted services.
The module includes two main features: Tax Filing, which helps users navigate old vs new tax regimes and ensures key deductions under sections like 80C and 80D are claimed, and Tax Planner, which offers personalised deduction mapping, House Rent Allowance evaluation, and regime comparisons. Users can track return status, monitor refunds, and receive alerts for notices.
Sustainability and Business Strategy
Experts agree that the Rs 24 pricing is primarily a customer acquisition strategy, not a sustainable revenue model.
At Rs 24, it is very attractive for cost-sensitive, young taxpayers who are tech-savvy. From an economic perspective, such pricing does not seem viable, but similar to Jio’s telecom strategy, the focus appears to be on user acquisition and ecosystem building rather than direct revenue from filingChintan Ghelani, Tax Partner, N A Shah Associates LLP
“The module is a marketing hook. The actual cost of compliance, platform development, and user support is much higher. JioFinance is clearly aiming for scale, to later cross-sell loans, investments, insurance, and wealth services,” added Rajat Mohan, Senior Partner, AMRG & Associates.
“JioFinance’s introduction of an ultra-low-cost platform is a bold move to rapidly expand its user base. Profitability is secondary; the broader digital strategy focuses on financial inclusion and future cross-selling opportunities,” noted Aditya Singhania, Founder, Singhania’s GST Consultancy & Co.
“From a sustainability perspective, Rs 24 filing is unlikely to cover costs, but it makes sense as a customer acquisition tool, given the do-it-yourself model. Expert-assisted filing at Rs 999 offers additional value,” said Neeraj Agarwala, Partner, Nangia & Co LLP.
Accuracy and Impact on Chartered Accountants
Experts caution that accuracy may be compromised in complex cases, but CAs remain essential for high-value advisory.
“Mass-scale, low-cost filing platforms generally work well for straightforward cases, but risk errors in more complex scenarios. Incorrect filings could result in additional tax, penalties, or scrutiny,” said Chintan Ghelani.
Automation can simplify routine compliance, but cannot replace judgment, advisory, and nuanced interpretation. CAs’ value will increasingly lie in areas where human assessment is criticalRajat Mohan, Senior Partner, AMRG & Associates
“While digital filing will help simple taxpayers, traditional service providers will continue to play a crucial role in complex tax matters, including strategic planning and litigation support,” noted Aditya Singhania.
A low-cost, highly automated filing module may work for straightforward, salaried taxpayers, but accuracy risks increase with capital gains, business income, or cross-border taxation. CAs remain criticalNeeraj Agarwala, Partner, Nangia & Co LLP
Data Privacy, Market Disruption, and Consumer Choice
Experts warn about data security risks and market consolidation due to aggressive pricing.
“With DPDP rules evolving, large-scale collection raises risks of data misuse and ethical issues. Taxpayers may not realise the value of the data they are parting with for such a low fee,” said Chintan Ghelani.
“Aggressive pricing could disrupt smaller platforms and independent practitioners, concentrating services under a few digital giants. This may reduce consumer choice and create systemic risks,” added Rajat Mohan.
Platforms must uphold strong safeguards for sensitive financial information. Otherwise, broader consumer choice and trust in digital tax services could be compromisedAditya Singhania, Founder, Singhania’s GST Consultancy & Co
“Taxpayers must carefully evaluate both price and value of services. In absence of full DPDP rules, responsibility for data security and accurate filing rests with the taxpayer,” said Neeraj Agarwala.
