EFFECTIVENESS OF INFORMATION TECHNOLOGY ON TAX ADMINISTRATION IN INDIA

The integration of Information Technology (IT) in tax administration has emerged as a pivotal factor in enhancing the efficiency, transparency, and compliance of tax systems worldwide. This paper examines the effectiveness of IT in the Indian tax administration framework, exploring its historical evolution, recent advancements, and the impact of digital initiatives such as e-filing, the Goods and Services Tax Network (GSTN), and data analytics. The study highlights significant improvements in taxpayer services, accuracy in data reporting, and the overall efficiency of tax collection processes.

However, it also identifies critical challenges, including infrastructure gaps, cybersecurity risks, and resistance to technological adoption among taxpayers and officials. Comparative analyses of tax systems in developed countries reveal valuable lessons for India, particularly in leveraging emerging technologies like artificial intelligence and blockchain. Policy recommendations focus on enhancing digital infrastructure, investing in cybersecurity, and fostering a culture of technological adoption among stakeholders.

The findings emphasize the need for continuous improvement and innovation in IT systems to achieve a more effective and equitable tax administration in India, ultimately contributing to better compliance and enhanced government revenue.