A 100-odd returns have been filed with the income tax department under the new online filing of tax returns scheme, a month into its operation.

The department is hopeful that the pace will pick up soon, as the deadline for filing of tax returns approaches. The last date for filing of tax returns is September 30.

At present, six banks have been designated under the scheme, which is available to taxpayers in seven cities. These are the four metros and Ahmedabad, Bangalore and Hyderabad. The department is planning to expand the facility to include more banks and introduce it in more cities.

Under the scheme, tax assessees, whose only source of income are their salaries, can approach any of the designated banks with their tax challans or Form 16 along with proofs of their savings. These banks will then file the returns to the income tax department electronically.
 
However the assessees must have a Permanent Account Number to enjoy this facility.

The six banks - UTI Bank, HDFC Bank, IDBI Bank, ICICI Bank, Bharat Overseas Bank and Indian Overseas Bank - are offering tax filing services for a charge of Rs 100-Rs 250 per return.

The banks are transmitting the returns electronically to the server of the income tax department, saving the assessees the bother of approaching the tax department. Tax officials said this would eliminate the need for any direct interaction between them and taxpayers. The banks will also provide a copy of the returns to the income tax payers.

To popularise this new scheme, the IT department has all but merged it with last year's Suvidha scheme, under which employers could file tax returns of their employees electronically in one transaction.

To encourage more people to use this facility, banks are expected to offer door-to-door services to their clients.

The revenue department is yet to clarify whether it will levy any service tax on the services being offered by the banks.

The decision to route electronic filing of returns through designated intermediaries, instead of allowing people to file their returns themselves, has been prompted by the fact that almost nobody in India has a digital signature as yet. Even several banks have not obtained a digital signature as yet.