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@article{192606,
        author = {DENSAL NOBLE and JOSH THOMAS VARGHESE and APARNA P N and APARNA R},
        title = {IMPACT OF DIGITALIZATION OF DIRECT TAX ADMINISTRATION ON TAX COMPLIANCE AND REVENUE},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {9},
        pages = {2071-2077},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=192606},
        abstract = {This paper will explore how digitalization has influenced tax compliance and tax collection in the direct tax administration of India. As the government stepped up efforts to digitize government services, tax authorities have turned to a variety of technologies and tools, including e-filing, online tax payment options, faceless assessments, and data analytics. The measures are meant to minimize human interference, maximize transparency, boost efficiency and increase voluntary compliance to taxation by taxpayers.
The study analyses the effects of digital tax administration on trust by taxpayers, transparency, compliance ease, reporting accuracy, and efficiency in revenue collection. Primary data were obtained using structured questionnaire to small businesses owners, professionals, and incomes of individual taxpayers. Taxpayer perceptions, adoption patterns and the association between compliance behaviour and digitalization were analysed using descriptive and inferential statistical tools.
The results indicate that digitalization has been found to contribute to a high level of tax compliance and collection of revenue. Online payment systems and filing systems have decreased the time of processing, the simplification of procedures and errors. Anonymous testing and online communication have helped to increase openness, minimize the chances of improper conduct, and boost trust in taxpayers. Additionally, enhanced data integration and analytics have facilitated enhanced monitoring and detection of tax evasion, which have increased revenue compliance.
Nevertheless, the research also shows several major obstacles, such as technical problems, the lack of digital literacy among some segments of taxpayers, the risk to data privacy, and the deficient state of digital infrastructure in rural regions. The complexity and time-consuming nature of compliance procedures and updated systems is also seen by some taxpayers. Some of the recommendations of the study include ongoing upgrades of the systems, strengthening education and support of the taxpayers, better grievance redressal mechanisms, user-friendly platforms, and effective data security measures. All in all, the research finds that digitalization plays a key role in enhancing the direct tax administration in India, although technological, infrastructural, and behavioural barriers should be mitigated.},
        keywords = {Digitalization, Direct Tax Administration, Tax Compliance, Revenue Collection, Digital Governance},
        month = {February},
        }