In an attempt to widen the use of technology for taxpayers, this year's Budget has made e-returns mandatory for taxpayers with an annual income of Rs. 5 lakh or more.

Last year, the Central Board of Direct Taxes (CBDT) had made e-filing mandatory for taxpayers with an income of Rs. 10 lakh or more.

In his Budget speech this year, Finance Minister P Chidambaram had mentioned that he is extending the parameters for e-filing of income tax returns, but had not given any details.

CBDT Chairperson Poonam Kishore Saxena confirmed the lower income threshold for e-filing on Tuesday in a post-Budget interaction with the Federation of Indian Chambers of Commerce & Industry.

The mandatory e-filing will be applicable from the coming assessment year 2013-14 for income earned in the financial year 2012-13. The government is pushing the use of technology to reduce the compliance burden as well as make it easier and faster for the tax department to obtain information on the taxpayers' base.