Instant tax credit: An idea whose time has come for better compliance

A system that allows buyers to pay taxes directly to the government while paying would enhance trust, improve tax compliance, and accelerate tax collection

Imagine paying for a movie on an OTT (over the top) platform but being told you must wait a day before watching it—just so the bank can confirm the payment. Such a platform wouldn’t survive. Instant access to online payments is now the norm. But when it comes to taxes, businesses still struggle with getting instant confirmation. This creates inefficiencies that weigh them down.

 

Take my friend Amarjeet, who runs a startup selling digital tools to businesses. For transactions under ₹30,000, the process is seamless. Buyers pay online and instantly download the tools. However, for amounts exceeding ₹30,000, buyers must