V3I3P82

A Study on Taxpayer Compliance and Risk Mitigation in Scrutiny Assessment Through ClearTax Platform

R Arun Kumar^1*, Thrisha. P²

Abstract

Tax compliance in India is undergoing a fundamental shift driven by digital infrastructure expansion and increased regulatory oversight. This study examines taxpayer compliance and risk mitigation in scrutiny assessments through the Clear Tax platform, comparing technology-driven digital filing with traditional manual approaches. Using a quantitative research design, primary data were gathered from 91 respondents comprising individual taxpayers, chartered accountants, and finance professionals through a structured questionnaire. The analysis focused on filing frequency, ease of use, error reduction, scrutiny selection rates, confidence in regulatory compliance, and overall satisfaction. Findings reveal that ClearTax significantly reduces scrutiny risk for the majority of users, with 45.6% reporting no scrutiny experience after platform adoption, and nearly 64% expressing confidence in regulatory compliance. Automated validations, real-time alerts, and structured notice-management features were identified as key contributors to risk reduction. However, a notable minority expressed skepticism regarding data security and effectiveness, indicating scope for further improvement. The study concludes that digital tax platforms like ClearTax meaningfully enhance compliance quality, reduce litigation exposure, and improve taxpayer confidence when compared to conventional filing methods.

Keywords:

Tax Compliance, Scrutiny Assessment, ClearTax, Risk Mitigation, Digital Tax Platform, GST Reconciliation, Taxpayer Confidence, India