Digital transformation is crucial for bolstering the tax system by automating workflows and facilitating quicker, more precise data management. It boosts transparency, which in turn curbs fraud, corruption, and tax evasion. Embracing digital tools streamlines tax filing, offering greater convenience for taxpayers and fostering increased voluntary compliance. These systems also reduce human errors, leading to more reliable tax assessments. In summary, digital transformation enhances revenue management and enables governments to make well-informed policy decisions. The present study examines  how digital transformation affects India's tax e-filing system, specifically analysing perceived usefulness—defined by time savings, error reduction, and digital features—as well as its influence on taxpayer satisfaction, compliance intention, and continuance intention.  This study relies on primary data sources collected from 100 taxpayers in the Mysuru District. Pearson correlation analysis (all p < 0. 001) indicates very strong relationships among the variables. Notably, error reduction is strongly associated with satisfaction (r = 0. 914), whereas digital features exhibit a high correlation with continuance intention (r = 0. 985). Furthermore, satisfaction mediates between 72% and 91% of the relationship between perceived usefulness and behavioural outcomes. The empirically validated complete causal chain—perceived usefulness → satisfaction → compliance → continuance intention—features all correlation coefficients (r > 0. 50) surpassing Cohen's recommended thresholds. Against the backdrop of 9. 19 crore taxpayers  Income Tax Returns filed in FY 2024–25, these result emphasize decisive rule implication, such as the necessity for reliable error-free systems, stable digital infrastructure, and improved digital literacy among MSMEs to ensure sustained long-term adoption. The findings further validate the applicability of the Technology Acceptance Model within India's digital tax landscape, offering key insights to enhance voluntary tax compliance.