LEVERAGING DATA ANALYTICS FOR ENHANCING TAX COMPLIANCE IN INDIA

Abstract

The use of data analytics in tax collection has greatly changed India's tax compliance processes, making them more transparent, efficient, and accountable. In this research paper, the author discusses how new analytics methods, such as machine learning (ML), artificial intelligence (AI), and big data processing, are being used to enhance tax compliance, prevent tax evasion, and increase revenue collection.

The article analyses important programs such as the Goods and Services Tax Network (GSTN) and Project Insight of the Income Tax Department that utilize predictive analytics, anomaly detection, and monitoring of real-time transactions. The article also reflects on the shortcomings of deploying data analytics, i.e., issues of privacy, infrastructural restraints, and skill deficiencies. The article further outlines future potential in technologies such as blockchain, cloud computing, and AI-enabled automation that could define India's future tax administration.