Indian Banks To Commence E-Filing Service For Taxpayers

by Lorys Charalambous, Tax-News.com, Cyprus

08 August 2003

The Indian Income Tax Department is due to commence an electronic tax return system today that is designed to be used by salaried workers.

The department has nominated six national banks through which the scheme will operate. These are: UTI Bank, HDFC Bank, IDBI Bank, ICICI Bank, Bharat Overseas Bank and Indian Overseas Bank. Provided the taxpayer has a Permanent Account Number (PAN), the bank will transmit the information contained in a Form 16 to the income tax department's servers, thus eliminating the more time-consuming option of individual taxpayers dealing with the department directly. The banks will also provide a copy of the return to the taxpayer.

At present, the scheme is operating in seven major cities throughout India, but it is likely to be expanded at a later date, should the system prove successful. The banks may also charge a fee for provision of the service, the amount of which will be at their discretion. However, it is not expected to be more than Rs100. The revenue department is also considering whether to impose service tax on the e-filing facility.

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