Tax Compliance and E-Filing Systems for Individual Taxpayers: India vs Developed Economies

The study compares the use of tax compliance and e-filing systems among individual tax paying entities in India with those in the developed economies as a secondary data collection method. It discusses the technical, administrative, legal and equity aspects that affect the usefulness of e-filing done to increase voluntary compliance. By relying on the literature including Lannai (2024) [11], the study establishes that advanced economies have recorded high levels of compliance due to characteristics such as the interoperability of tax databases, electronic prefilled returns, mobile-compatible tax systems, streamlined routine tax filing, and robust security of data. Although the e-filing system of India has recorded significant improvement in terms of adoption, there has been a problem of accessibility and digital literacy, and the complexity of the process to specific segments of taxpayers. The trends highlighted in analysis reiterate that improving the situation by adapting examples of developed economies which include specific nudges, stepped increases in mandatory e-filing, and better education of taxpayers can be effective in increasing India compliance rates. On the other hand, innovations by India in the provision of low costs and scalable service to the wide and varied taxpayer population can be learned by other economies that have a developed economy. The policy implications of the findings are the relevancy of optimising e-filing systems as an attribute enhancing the tax compliance, administrative efficiency, and trust in the tax system. The paper finds that strategically calculated, all?inclusive and technologically receptive e-filing reforms can serve to lively the world in revenue collection and satisfaction of taxes.