First time in the banking sector, a service is launched by finance secretary Ashok Chawla on Tuesday, where customers can pay there income tax through ATMs.

Corporation Bank has become the first bank in the industry to start this service.

The new service will accept income tax through its 1,035 plus ATMs all over the country. In the beginning, around 10-20 lakh people will take advantage of this service.

In a statement, chairman of the Central Board of Direct Taxes, S S N Moorthy said, “Gradually, in the next one or two years the facility will be provided by all other banks.”

At present, it is compulsory for all the corporate assesses to whom provision of Section 44AB of Income Tax Act, 1961 is applicable, to make online payment of taxes. The main motive behind the process is to reach those people, who at present pay tax through challans.

Further, the bank has also joined the I-T department and NSDL where a customer can view his tax payment record online.