A Study on Digitalization of Tax System In India

Dr. Vodnala Chandramouly , Dr. Mallaram Srinivas Reddy

Tax, Digitalization, tax administration, e-filing, tax evasion.

The tax system in digital era has arisen as a transformative force, reforming the scenery of tax collection, reporting, and administration. Digitalization involves the integration of technology and digital tools to streamline traditionally labor-intensive processes. It enables efficiency gains through automated data entry, real-time validation, and precise calculations, resulting in faster processing times. This not only reduces delays--such as in tax refunds--but also alleviates the administrative burden on taxpayers. Additionally, shifting to digital platforms substantially lowers costs associated with paper-based documentation, physical storage, and manual labour. The digitalisation of the tax system in India marks a significant shift towards greater efficiency, transparency, and compliance in public finance management. This study explores the evolution, implementation, and impact of digital tax initiatives undertaken by the Indian government, including the introduction of the Goods and Services Tax (GST), e-filing of income tax returns, the Tax Information Network (TIN), and the adoption of faceless assessment systems. Through a combination of policy analysis and secondary data review, the research evaluates the effectiveness of these digital tools in reducing tax evasion, improving taxpayer services, and enhancing revenue collection. It also highlights challenges such as digital literacy, cybersecurity risks, and infrastructural limitations that hinder widespread adoption. The study concludes with recommendations to strengthen the digital tax ecosystem through policy refinement, stakeholder education, and technological upgrades to ensure an inclusive and robust tax administration framework in India.

Volume 13 Issue 9, September-2025

Pages : d498-d505