New Delhi: In a bid to increase revenue collections, government tonight (Nov 12) approved a Rs 251.56 crore package for the third phase of computer networking of Income Tax department in 418 towns.

The decision to sanction additional funds to the Income Tax department for its third phase of networking was taken at the Cabinet meeting.

The programme would lead to increase in revenue collection, efficiency and productivity of the department, improve service to taxpayers, official sources said.

"It will also increase the level of deterrence, besides widening the tax base," they said.

In the first two phases of computerisation, networking of metros like Delhi, Mumbai and Chennai and 57 other major cities and towns have been completed at a cost of Rs 181 crore, they said.

The third phase envisages networking of 418 remaining towns where income tax offices are located along with up-gradation of existing computers.

PTI