Paper Details

Abstract E-filing systems are a crucial part of the modernization of tax administration and the advancement of digital governance in India. Depending upon the technological infrastructure and the taxpayer’s ability to interact with the system, the law’s effectiveness may vary. This study examines the importance of digital financial literacy for the rising use of e-filing systems and the digital divide, and e-filing systems in particular. Based on the theory, the study proposes the use of digital financial literacy for the improvement of tax compliance, administration, and quality of service, as well as for the empowerment of the taxpayer. The study also addresses the negative effects of digital financial literacy. The author suggests that the adoption of e-filing systems should be considered and analyzed from the technological as well as the social and economic development perspective, where the digital financial literacy of the taxpayer plays a critical role. This study proposes several ideas for tax administrators and public policy designers related to the integration of digital financial literacy, the simplification of the system, and the establishment of the trust of users. The author acknowledges the limitations of the theory and proposes future research to validate the theory and conduct comparative research. This study attempts to reframe e-filing systems to seek financial inclusion as a part of the sustainable governance and development efforts that emerging economies have.

E-filing, Digital Financial Literacy, Digitalization, Financial Inclusion.