E-filing of returns must for corporates: FM

It is now mandatory for corporate entities to file tax returns through electronic-filing system, Finance Minister P Chidambaram said today. 

Launching e-filing of income tax returns,which is a mechanism developed as part of government's efforts to foster 'friendlier' relations between tax authorities and assesses, Chidambaram said more "friendly initiatives are underway and will be announced in due course."

TCS and Hero Honda Motors are the first two corporates to avail the facility.

Attributing the massive 40.9% increase in direct tax collection during the first half of current fiscal to the constant endeavour of tax authorities to improve relations with assesses, he said while the system was introduced for individual and personal tax payers in 2004, it is now also mandatory for corporate to do so.

Corporates filing returns through digital signatures need not furnish tax return papers while those filing through intermediates or who did not use digital signatures would have to supplement this through paper returns, he said. 

The finance minister expressed hope that corporates would use the electronic mode in huge numbers to file their returns, the last date for which is October 31.