A Systematic Literature Review on Digital Tax Literacy in India: Bridging the Gap Between Digital Governance and Taxpayer Awareness

The digital transformation of India's tax system, which involves online GST platforms, online income tax return filing, TDS/TRACES systems, and digital payments linked to UPI, has substantially changed how people and businesses deal with taxing authorities. Following the PRISMA procedure, this work provides a methodical literature review (SLR) of scholarly and administrative publications on digital tax literacy in India. From a curated pool of 214 records obtained from governmental/institutional publications, scholarly working papers, and journals listed in Scopus, Google Scholar, SSRN, and UGC-CARE, 34 research articles published between 2012 and 2026 were chosen. The review is organised thematically around six domains: conceptual foundations, the digital tax ecosystem, demographic determinants, barriers and the digital divide, government initiatives, and compliance outcomes. The findings show that although younger, urban, and salaried taxpayers have a substantially higher degree of digital tax literacy, people living in rural areas, small enterprise owners, and older taxpayers still face significant obstacles relating to awareness, access, and trust. The paper concludes with a proposed research plan and recommendations for policy for improving digital tax literacy throughout India's taxpayer segments.