As many as 74% of corporates expected the government to adopt the SAF-T (standard audit file for tax) system for “near real-time reporting and compliance monitoring” to ensure uniformity with international standards and move towards a more efficient and faster audit process, a survey by Deloitte showed.
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Also, 67% of the 250 organisations surveyed wanted the introduction of a “tax e-wallet” for prompt credit of tax refunds, the ‘survey on income tax digitalisation in India 2.0’ found. Of the respondents, 63% expected the government to issue an automated programming interface (API) to enable corporates to fetch data from the income tax portal.
Highlighting the evolving role of technology in taxation, Rohinton Sidhwa, partner at Deloitte India, said the government’s progress in digitalisation is already reshaping the tax landscape, enhancing the ease of doing business and driving efficiencies that taxpayers highly appreciate.
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The survey revealed that 77% of companies have increased their budgets for tax transformation and automation in FY24, up from 67% last year.
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The survey highlighted that 92% of organisations have either adopted or are planning to adopt technology-driven tax platforms in the next five years, an increase from less than 80% in 2023.
The survey showed that the use of third-party tax software and cloud-based solutions has increased significantly – to 69% from 57% in 2023. Simultaneously, businesses are focusing on streamlining TDS/TCS compliance.
Despite these advancements, organisations still face challenges such as a shortage of skilled professionals in their journey towards tax digitalisation.
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