Over the past decade, India’s taxation system has undergone a major transformation, shifting from a largely manual and paperwork-driven setup to a more technology-oriented framework. This study explores how digitalization has affected tax compliance by using secondary data from government reports, policy papers, and institutional sources. Key indicators such as income tax return filings, GST collections, growth in digital payments, and the tax-to-GDP ratio have been examined.

The analysis shows that digital reforms have improved transparency, encouraged more taxpayers to participate, and strengthened revenue collection. At the same time, issues like limited digital literacy, technical glitches, and unequal access to technology continue to pose challenges. Overall,

the study finds that digitalization has had a positive impact on tax compliance, but further improvements are needed to make the system more inclusive and efficient.