Around the world, the technology has increased digitalization and unprecedented flow of information is causing the tax across nations. Through the digital transformation it creates to re-think and re-examine the modes of the introduction of new technologies and analytical tools and to transform into “Digitally Tax Administrations”. The use of advanced data analytics data mining and data processing technologies and automation capabilities, the tax-risk and data based decision-making, has become a ‘Mandatory Norm’ across the world. According to the annual report of “Forum for Tax Administrations”(FTA) consisting of 53 countries across the world. For the FY 2018-2019. This study clearly indicate that tax administration with a high spend on technology witness a correspondingly high rate of compliance. The use of technology has significant potential to improve revenue collection by automation of process and provision of improves services to tax payers.