Digitalisation in tax has taken an important turn in tax administration and compliance in India, in the era of transparency and efficiency. Digitalisation involves the process of integrating technology and digital tools to eliminate traditional method which was labour intensive. It shows clear and precise data through automatic data entry and precise calculations. As a result of such activities, the process becomes simple, clear and less time consuming. In addition to this, chances of human error and fraud also decreases. The digitalisation of the tax system in India marks a significant shift towards greater efficiency, transparency, and compliance in public finance management. The study throws light on the development of digital era in India, in Indian tax system and in Indian economy.