The Future of Tax Laws: Predictions and Trends

“Explore the future of tax laws with predictions and trends, emphasizing the role of Artificial Intelligence (AI) in taxation. Learn how AI can revolutionize data collection, analysis, risk assessment, and policy framing. Discover the potential for global tax reforms through AI-driven strategies, ensuring more efficient and data-driven tax laws.”

The tax is major a source of revenue for the Government of India. The Indian budget is based on the tax collections and the tax revenues from the citizens of India.

However, as per data of Income tax department of India only 5.83 crore ITRs has been filed in the AY2022-23. And this number is very low as compared to the total population of the India. In the era of Digitalization and Artificial Intelligence the Government can use such AI tools to get more accurate and filtered data as per records.

Artificial Intelligence can be used in taxation as follows:

• Collection of Data: AI can be used to collect data of various transactions within the limit and can store it to analyze itself and for the department, such data can be collected and stored in the system of the department.
• Data Analyzing: The all data collected by AI or uploaded on AI  can be analyzed by it and can come to conclusion that how many citizens are making transactions by which there income be assumed as crossed the limit for being liable to pay taxes and to file ITR.
•  Analyzing the risk involved: The AI can also analyze the risk involved in framing the tax policies. And the outcome can be controlled properly.
• Automation: The Automation can work more efficiently as it will reduce the time taking process in the data analysis. Various systems uses automation to overcome the better results as it will avoid the human errors.

Framing Policies Based on Taxation :

The Government can frame policies on taxation in the budget on the basis of AI and Digitalization analysis as it can give better data by virtue of automation and the AI Tools. However, the policy making department can take into the consideration  an can frame much better and more productive policy on tax laws. The more better policy can bring more efficient tax laws and stabilizes financial position of the country.

Through AI and Digitalization based analysis can make a demographic change in the framing of taxation policies.

AI can bring global tax reforms :

The use of AI to analyze and to frame policies can bring a strategic change in the global tax system as many countries can get benefits from it as it can be the revolutionary policy making strategy for the government of many countries.

Conclusion:

The Artificial Intelligence can be more useful in framing various policies for the government and in respective of taxation policy it can give better results as it is more data driven policy for the government, without appropriate data and efficient analysis of such data policy can bring the drastic failure for the policy. but we cannot forget that the AI cannot be always accurate as it is only depends on the data and cannot think like human being, so overviewing by experts in the department we can make it more accurate.