This book chapter intends to discuss and understand the viability and application of information technology tools for better governance in India with specific reference to tax collections and funds utilization. Technology is one component which has penetrated into almost every component of governance and this is the reason that it is imperative so as to understand and explore new ways through which governance can be executed and at the same time monitored as well. This article strives to study the usage of information technology in governance practices of various successful nations all across the globe such as Denmark, Sweden, Norway, Finland and Wales, and how can their governance system be adapted within the Indian governance. The Scandinavian nations and several other nations of Europe have been very successful in applying and executing information technology within their governance and this is something that the Indian governance should also learn and adapt. Governance is a term which includes several things and numerous components of which taxation and funds collection is a small part of.