Digital transformation of tax function

With the increasing digitalisation of tax administration in India as well as the need for corporates to be able to govern their tax function more efficiently as well as minimise risk, enablement of technology within the tax function has become a matter of urgency. At KPMG in India, we recognise this need and have developed several technology enabled tax solutions which can help accelerate the digital transformation of your tax function.

In addition to ‘ready to implement technologies’, our tax automation and transformation team also helps tax and finance leaders establish a customised tax technology roadmap and implement it based on the objective set out by the organisation.

Driving growth with Tax technology and automation trends

Avalara Refresh 2026

Sandesh Mahagaokar

Partner, Tax Technology and Transformation

KPMG in India

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Agentic AI is reshaping tax operations - from ERPs with AI-powered conversational interfaces to agentic tax engines capable of orchestrating increasingly complex tax processes.

AI can significantly enhance tax research, drafting, anomaly detection, and transaction classification. However, it is not the primary solution for deterministic tax calculations. AI is augmenting tax professionals, not replacing their tax judgment.
Boardrooms are seeking confidence in AI-enabled tax processes and their ourputs. That confidence comes from AI operating within a controlled framework built on:
- Human oversight and review – AI may prepare, but it should not approve or file
- Auditability and traceability of AI outputs – Which agent generated the output, who reviewed it, who approved it, and what changes were made
- Transparency – Explainable outputs with references to sources and a confidence index
- Governance framework– Visibility of active agents, high-risk AI use cases, AI-related breaches, and open risks
- Assurance – Independent testing by business and risk teams covering accuracy, biases, and data security.

As AI adoption accelerates, the focus should not only be on what AI can do, but also on how it is governed.

Typical technology interventions

Digital tax governance

Provides 360 degree view of the tax status of the company and improve tax process

Tax data analytics

Provides insights into transactional data using data analytics, e.g. identifying areas of potential efficiencies and improvements

Automation of tax activities

Process automation to reduce manual efforts (e.g. Robotic Process Automation/Bots)

Tax ERP automation

Using existing capabilites within ERP to automate controls and capture data of tax needs

Tax data management

Manage voluminous tax data for tax compliances, tax audits and reconciliations

Tax compliance automation

Technology used for statutory tax compliance. e.g. GST e-invoicing, etc

Our solutions and case studies

Tax technology tools for digitalising tax function, tax compliance automation and transactional tax data analytics

Customised automation solutions for transforming data and automating tax processes for the tax functions

Insights on our approach for implementing tax technology and automation solutions for business organisations enabling digitalisation of tax function

Smart Digital Tax Platform

Explore other Tax technology pages

AI tool for tax teams in India using generative Artificial Intelligence (AI) capabilities for day to day tax activities

Tax technology tools for digitalising tax function, tax compliance automation and transactional tax data analytics

Cloud-based tax compliance and litigation management tool with tax status, tax assessment readiness, automated notice tracking, AI assistance, and knowledge management (GenAI capable)