Robotics, blockchain, and GenAI to transform Indian tax landscape

A recent Deloitte India survey reveals that the majority of leading corporate taxpayers in India are calling for greater technological integration within the income tax system. The findings underscore a rising demand for real-time reporting, automation, and advanced technologies such as blockchain and AI to simplify tax compliance and enhance efficiency. Notably, the survey indicates that 92% of organizations have already adopted or plan to implement technology-driven tax platforms within the next five years.

According to Deloitte India’s ‘Income Tax Digitalisation in India survey’, the Indian government’s advancements in digitalisation are revolutionising the tax landscape, enhancing ease of business and operational efficiency. The findings reveal a positive perception among India Inc towards tax technology and growing trust in government-led digital initiatives aimed at creating a taxpayer-friendly ecosystem.

The digital transformation has simplified compliance processes, reduced the time spent on tax obligations, and improved efficiency. 

According to the survey, 92% of organisations have either adopted or plan to adopt technology-driven tax platforms within five years, a significant rise from under 80% in 2023. This highlights the increasing recognition of technology’s role in streamlining compliance and future-proofing tax operations. Over 50% of organisations are open to implementing new-age technologies such as artificial intelligence (AI), machine learning (ML), and generative AI in their tax functions.

Taxpayers’ expectations are rising with the government’s successful e-initiatives. Key demands include adopting the Standard Audit File for Tax (SAF-T), expected by 74% of respondents to enable near real-time reporting and compliance monitoring, and open APIs like GST for seamless data exchange, expected by 63% of respondents.

The survey also indicates a growing commitment by organisations to tax transformation, with 77% of companies increasing budgets for tax automation in FY24, up from 67% in FY23. Advanced technologies like Robotic Process Automation (RPA), blockchain, GenAI, machine learning, data analytics and integration are being embraced to accelerate digitalisation in tax functions.

Mr. Rohinton Sidhwa, Partner at Deloitte India, noted that the 2024 Budget’s focus on “Viksit Bharat,” with an emphasis on innovation and R&D, as a driver of transformative tax administration changes, that taxpayers deeply appreciate.

Deloitte India’s ‘Income Tax Digitalisation in India’ survey gathered insights from approximately 250 of the country’s top corporate taxpayers.