Kerala to make e-filing of tax returns compulsory

The Government of Kerala (Indian state) has announced that online sales tax filing will be made mandatory from the next fiscal year.

Traders can file their sales tax online from December 2008. However, the e-Filing of taxes will be made compulsory from the next financial year. The Government is planning to establish kiosks at the Akshaya centres to facilitate e-Filing. Akshaya centres are e-Kiosks run by private entrepreneurs, which have state-wide reach.

The traders will be provided with a brochure which will have all the names of the accredited Akshaya centres where they can submit all their papers. Akshaya Centres will conduct the data entry and subsequently submit the returns to the tax department.

Akshaya centres will get compensation for filing tax returns from the Kerala government. It is expected that approximately 150,000 returns will be filed in Kerala which will be an income generating opportunity for these centres.

It is expecting that the e-Filing will bring 20-25 percent increase in tax revenues this year.