Abstract

Abstract This paper discusses the computerisation project introduced in the Income Tax Department of India. After discussing the related work in the field of taxation in both India and abroad it reviews the creation of the system and the approach followed for its implementation. It briefly reviews the objectives, the problem areas identified and the areas of application. After describing the present scenario it talks about the future plans and issues for the 1990s being considered by the Department. The paper concludes with a discussion of the extent of success of this project, the shortcomings noted and the applicability of similar systems in other developing countries. The latest available (1987–88) All‐India income tax statistics are given.