On the scope of Information enhanced under new tax returns forms, Gopal Bohra, Partner, NA Shah Associates LLP says, “With Artificial Intelligence the tax department will be able to map the income declared by the taxpayer with lavish spending on international travel or electricity and on mismatch of profile will automatically select the cases for assessment. Further, due to mandatory filling, the tax base will also increase.” The new form requires an assesse to specify the amount spent during the previous year in above cases. It also includes changes in disclosure requirement under presumptive taxation.
Sharing his views, Shreyans Dudheria, FCA, Financial Advisor, says, “These changes will assist Individual assesses to engage with their financial planner and thus ensure compliance. This will increase taxpayer base as the new changes require compliance by even those who are below taxable limit.”
ITR-1, which is also known as “Sahaj" can be used by an individual whose income primarily include salary income and whose total income does not exceed Rs 50 lakh during the FY. On the other hand ITR-4 can be used to file returns by resident individuals, Hindu Undivided Family and firms (other than LLP) having a total income of up to Rs50 lakh from business and profession and filing return under presumptive taxation scheme.