The income-tax department will inaugurate electronic filing of returns from Friday to allow salaried taxpayers to file their returns without having to come to the department.

The scheme goes beyond the Sampark plan, which was launched in July this year, under which assesses could generate returns on computer by following a question and answer format.

The e-filing of returns will allow those who have only salary income to approach a bank with their tax challans or Form 16 and proof of savings, who will then file the returns to the income tax department electronically. However the assesses must have a Permanent Account Number to avail of the facility.

The e-filing scheme will initially be restricted to seven cities: the four metros as well as Ahmedabad, Bangalore and Hyderabad. Based on the success of the project, it will be extended to other cities later on.

The income-tax department has selected six banks to work as designated intermediaries for the purpose. They are UTI Bank, HDFC Bank, IDBI Bank, ICICI Bank, Bharat Overseas Bank and Indian Overseas Bank.

These banks will transmit the returns electronically to the server of the income tax department, saving the assesses from the trouble of going to the tax department. According to tax officials, this was another step to eliminate the interface of the taxpayers with them. The banks will also provide a copy of the returns to the income taxpayers.

The department has, however, left it to the discretion of the banks on the charge that they will levy for this service. The sum is expected to be not more than Rs 100 for each return.

To encourage more people to use this facility, it is expected that the banks may even offer door to door service to its clients. The revenue department will also clarify if it will levy any service tax on the services being offered by the banks.

The decision to route electronic filing of returns through the designated intermediaries is because most people do not have digital signature as yet. Many banks are also in the process of obtaining their digital signature.