India's salaried class might be spared the tedium of filing income tax returns from next year provided they have no other sources of income, Finance Minister P. Chidambaram hinted Thursday.


"We are considering the proposal to exempt the salaried class from filing returns," Chidambaram told reporters here at a press conference, organised to announce the launch of a drive against income tax evaders.

The implementation of the proposed plan would "in turn depend upon how soon the tax department puts in place the fully online Tax Information Network (TIN)", the minister said.

The government set up the TIN last year enabling the department to scrutinise information online about taxes paid, taxes refunded and high value transactions.

Only three percent of India's billion plus population pays income tax and the collection rate has remained stagnant at about 10 percent of the gross domestic product (GDP) for almost a decade.

The government has already begun the move towards a paperless system of filing for tax deduction at source from this year, but this has been put off by a year now, as the TIN is yet to become fully operational.

Chidambaram said at the moment it was unclear when the process will be completed.

"We are working towards that goal. There is far more information with the tax department than before. Non-filers of tax returns can't get away for long."