Digital tax compliance in India: A data-driven analysis of income tax return filings (2021–2026)
Keywords:
Digital Tax Compliance, Income Tax Return, E-Filing, India, Taxpayer Behavior, Secondary Data Analysis, FinTech GovernanceAbstract
This study investigates the dynamics of digital tax compliance in India by analyzing Income Tax Return (ITR) filings from 2021 to 2026 using secondary data. Advanced analytical techniques such as time series modeling, regression analysis, hypothesis testing, and ARIMA forecasting were employed using tools including Python, R, SPSS, and Power BI. The results reveal a steady increase in ITR filings with a CAGR of 7.47 per cent, indicating sustained growth in compliance. Regression and correlation analysis confirm a strong positive relationship between digital adoption and filing behavior, while hypothesis testing establishes statistical significance (p < 0.05). Forecasting results further indicate a stable upward trajectory, suggesting maturity in India’s digital tax ecosystem. Despite high processing efficiency levels above 95 per cent, a marginal decline indicates growing pressure on administrative systems. The study concludes that digitalization has significantly improved tax compliance, though backend efficiency and taxpayer awareness remain critical areas for improvement.
Downloads
References
1. Gupta, R. (2023). Digital taxation trends in India: An analysis of technological transformation and compliance behavior. Journal of Finance, 12(3), 45–60.
2. Sharma, P. (2022). E-governance and tax compliance in India: The role of digital platforms in enhancing transparency and efficiency. Indian Journal of Public Policy, 8(2), 101–115.
3. Kumar, S., & Singh, R. (2024). Behavioral aspects of tax compliance: Evidence from digital tax systems in India. Journal of Economic Studies, 15(1), 88–102.
4. Organisation for Economic Co-operation and Development (OECD). (2022). Tax administration digitalisation: Transforming tax systems through digital technologies and data analytics. OECD Publishing. https://doi.org/10.1787/xxxx
5. Central Board of Direct Taxes (CBDT). (2024). Direct tax statistics: Key trends and insights into India’s tax system. Ministry of Finance, Government of India.
6. World Bank. (2023). Digital governance in emerging economies: Enhancing public service delivery through technology. World Bank Publications. https://doi.org/10.1596/xxxx
7. Rao, M. (2021). Tax reforms in India: A structural and policy-oriented analysis of compliance systems. Economic Review, 9(4), 67–82.
8. Mehta, A. (2025). FinTech and taxation: Emerging technologies reshaping tax compliance and administration. International Journal of Finance, 18(2), 122–135.
9. Patel, K. (2023). E-filing adoption in India: A study on taxpayer behavior and digital acceptance. Management Insights, 11(1), 55–70.
10. Singh, V. (2022). Taxpayer awareness and compliance in developing economies: Evidence from India. Asian Economic Journal, 14(3), 89–105.
11. International Monetary Fund (IMF). (2023). Digital transformation in taxation systems:
12. Policy implications and global practices. IMF Publications. https://www.imf.org xii. Deloitte. (2024). India tax compliance trends report: Digital transformation and regulatory insights. Deloitte Insights. https://www2.deloitte.com
13. PwC. (2025). Future of taxation in India: Leveraging technology for improved compliance and governance. PricewaterhouseCoopers. https://www.pwc.in
14. Narayan, D. (2022). Impact of digital platforms on tax filing efficiency: Evidence from Indian taxpayers. Journal of IT & Management, 13(2), 44–59. xv. KPMG. (2024). Tax technology and compliance trends: The future of digital tax administration. KPMG International. https://home.kpmg
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 The International tax journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
