Tax Authority major constraint is to inform people to pay taxes on time but in India taxes are quite complicated and frequent in nature. Infact every fortnight we have to pay certain taxes and it becomes practically impossible to adhere to the due dates

What if government starts to nudge on your smartphones stating that “Today is due date to pay your GST tax or pay your TDS?”

Will that change the behavior of non-compliant and also for someone who misses the deadlines?

Nudging” is a psychological tool used to change people’s behaviour. When you see your smartphone nudge you check the same instantly and that’s where magic of complianceswill happen

Well magic was created by a team of researchers managed to raise the Caribbean nation’s tax revenue by $193 million in 2019, simply through effective “nudges”.

Tax was equivalent to 0.23% of the country’s GDP in 2018, as tax revenue. Of this, over $100 million tax would not have come if not for the experiment, the authors claim.

The nudges that the team sent with deadline reminders included warnings about prison sentences or public disclosures due to non-compliances and strict warning impact was high which lead to timely compliance 

Should Indian Government adopt similar practice?

Attention Members: Do you think this Idea make sense? Pls let us know in comment box

If you feel this is really a pain point we would like to solve the same

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