e-payment of direct taxes likely to be made compulsory

New Delhi: The Income-Tax Department wishes to popularise e-payment of taxes among the 3.2 crore-odd income tax assessees in the country. Towards this end, the department may, from January 1, make it compulsory for certain categories of assessees to pay direct taxes only through the e-payment mode. Indications are that e-payment of direct taxes would become mandatory for corporates to begin with. There is thinking within the Central Board of Direct Taxes that e-payment should be compulsory from January 1, for certain category of assessees.

There are currently 32 agency banks that deal with income-tax payments. Of these, eight already offer e-payment option via net-banking accounts. The 20 banks have expressed interest to offer net banking facility and at least two banks have expressed inability to provide such a facility due to the state of their computerisation. Of the eight banks that offer e-payment facility, which is currently optional for assessees, sources said that only four SBI, Axis Bank, HDFC Bank and ICICI Bank are popular among taxpayers. In fiscal 2006-07, the Government collected less than 1 per cent of its total direct tax collections of about Rs 2,29,272 crore through the e-payment mode. For fiscal 2007-08, the Centre has pegged the budget estimate for direct taxes at Rs 2,67,490 crore.