Impact of Direct Tax Filing Deadlines on Taxpayer Compliance Behaviour in India
Yamuna Chinnamani.1 Srinidhi Sharrma2, Preethi Bala3, Dr Tejaswini S4
1,2, &3 MBA 2025-27, Faculty of Management Studies, JAIN (Deemed-to-be University)
4 Assistant Professor, Faculty of Management Studies, JAIN (Deemed-to-be University)
INTRODUCTION
Taxation constitutes the fiscal backbone of any sovereign economy, and in India, the structure of direct taxation has undergone transformative changes since the enactment of the Income Tax Act, 1961. Direct taxes levied directly on the income, wealth, and profits of individuals and corporate entities form a critical instrument of the government's revenue mobilisation strategy. The Income Tax Department of India, operating under the Central Board of Direct Taxes (CBDT), is entrusted with the administration of these taxes, including the enforcement of statutory deadlines for the filing of income tax returns (ITRs). These deadlines, commonly referred to as tax filing deadlines or due dates, govern the temporal compliance obligations of millions of taxpayers across income categories. The relationship between these deadlines and actual taxpayer behaviour has emerged as a significant area of scholarly and policy interest, particularly in the context of India's ambitious goal of expanding its tax base and improving voluntary compliance.
Direct tax, in its most elementary sense, refers to a tax imposed directly on the income or wealth of a person or organisation and paid directly to the government by the assessee on whom it is levied. In India, the principal forms of direct taxes include income tax, corporate tax, capital gains tax, and securities transaction tax (STT). The Income Tax Act, 1961, along with its subordinate legislation and annual Finance Acts, governs the computation, payment, and filing procedures for these taxes. Taxpayer compliance behaviour refers to the degree to which taxpayers meet their statutory obligations in terms of accurate reporting of income, timely payment of tax dues, and adherence to prescribed filing timelines. Compliance can be voluntary or enforced, and its quality is shaped by a complex interplay of administrative, psychological, economic, and institutional factors. Consumer spending behaviour is closely linked to tax policy, as changes in direct tax slabs, exemptions, and rebates alter disposable income levels and reshape household financial priorities.
