Corporate Tax Revolution: Real-Time Reporting Gains Momentum

A Deloitte India survey reveals nearly 74% of top corporate taxpayers advocate for real-time tax reporting enhancements. Tax e-wallets and advanced technologies like AI and blockchain are recommended for improved compliance. Companies are boosting budgets for tax tech transformation amidst challenges in digitalisation due to skill shortages and tech adoption resistance.

According to a Deloitte India survey, approximately 74% of elite corporate taxpayers are advocating for the income tax department to enhance real-time reporting capabilities. This move is seen as essential for compliance monitoring, reflecting a broader push towards digitizing tax functions.

The report, surveying 250 of the highest-earning corporate taxpayers, highlighted that 67% desire tax e-wallets for swift refund credits and adjustments against outstanding liabilities. Additionally, 63% emphasize the need for APIs from tax portals to bolster seamless data integration.

Despite widespread enthusiasm for advanced technologies like blockchain and AI, the transition to a tech-first tax system is strained by a lack of skilled professionals and integration challenges. Deloitte Partner Rohinton Sidhwa stressed that companies are allocating more budget towards enhancing tax digitalization to tackle these hurdles effectively.

(With inputs from agencies.)