How has technology contributed to the growth of direct tax receipts in India

Present a detailed analysis of the role of technology in the 11.2% rise of direct tax receipts in India.
Technology has played a significant role in the growth of direct tax receipts in India. Here are some of the ways in which technology has contributed to this growth:
  • Intelligent automation of tax assessment: The introduction of automation in tax assessment has helped increase the accuracy and speed of the process. This has led to a reduction in errors and improved efficiency of the tax department.
  • Online tax filing and payment: Through the introduction of online filing and payment of taxes, taxpayers can easily file their returns without the need to visit the tax department. This has resulted in increased compliance and documentation, which in turn has led to higher revenue for the government.
  • Data analytics and mining: The government has started using advanced data analytics tools to identify tax evaders more effectively. This has led to a rise in tax revenues as tax evasion has reduced significantly.
  • Online monitoring of high-value transactions: The government has implemented steps to monitor high-value transactions such as property transactions, share trading, and cash deposits. This has helped prevent tax evasion and increased tax compliance.
Overall, the introduction of technology has helped improve the efficiency, accuracy, and transparency of the tax administration system, leading to an 11.2% rise in direct tax receipts in India.
Answered a year ago
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