THE EFFECT OF DIGITAL INNOVATION ON TAX FILING AND REFUND ADMINISTRATION IN INDIA

Digital innovation has fundamentally transformed the structure and functioning of tax administration systems across the globe, and India has emerged as one of the leading developing economies adopting large-scale digital reforms in taxation. Over the past decade, the Indian government has implemented a wide range of digital initiatives aimed at simplifying tax filing procedures, improving refund administration, enhancing transparency, and strengthening taxpayer confidence. Innovations such as e-filing portals, centralized processing centers, pre-filled income tax returns, faceless assessments, automated refund mechanisms, artificial intelligence-driven data analytics, and real-time information integration have significantly altered the traditional tax administration framework. This study examines the effect of digital innovation on tax filing and refund administration in India using secondary data sources. The research draws upon official publications from the Central Board of Direct Taxes (CBDT), Income Tax Department reports, Ministry of Finance documents, Economic Surveys, academic research papers, and policy reports issued by international organizations. The study analyzes how digital transformation has reduced compliance costs, minimized manual intervention, improved processing speed, enhanced accuracy, and increased overall taxpayer satisfaction. At the same time, it explores persistent challenges such as technological glitches, cybersecurity concerns, digital literacy gaps, accessibility issues for rural and elderly taxpayers, and system adaptability during peak filing periods.