The steps taken by the revenue department to check evasion has started reaping results, Union Finance Minister P Chidambaram said on Thursday.

Mr. Chidambaram said that 10,000 assessees filed returns and cleared their dues after receiving notice from the department. The department had sent notices to 70,000 companies and individuals asking them to disclose their income and file taxes, or face penal action.

The total number of individuals issued notice has reached 1.05 lakh as the department recently issued another 35,000 notices to defaulters.

Speaking on the topic, Mr. Chidambaram said, "I am inferring that our approach is paying dividend. I am happy with the change of attitude and I hope many thousands more will voluntarily file their returns and pay the tax dues, especially the Advance Tax tomorrow [Friday]."

The number of filing of returns through the electronic mode saw a considerable jump year-on-year. Nearly 135,000 returns were filed through the electronic mode between February 10 and March 10, as compared with 108,000 in the same period of the last year.

The government has also offered a penalty waiver to defaulters who file returns and pay the dues by March 15 - the very last date for paying the final installment of advance tax for individuals as well as corporates.

It is not the first time that a government is offering a penalty waiver to defaulters. Many previous governments also did the same in numerous cases in the past.