The government said on Wednesday that it has appointed management consultant Ernst & Young and NSE's infotech subsidiary, NSE.IT, as its technology advisors for providing online facilities to all tax payers under the "taxnet" scheme.

Also, it has notified NSDL as the e-TDS intermediary through which Tax Deduction at Source can be filed electronically.

The "taxnet" scheme was initiated by the Department of Income Tax in 1994 and seeks to create a single repository of assessees nationally to simplify both, the tax administration and collection processes.

"The successful completion of this project will mark a watershed tax administration in the country. It will go a long way in enhancing tax efficiency for both officials and the assessees," CBDT member B Swarup told newspersons in New Delhi.

He also said that from April 1 this year, personal income tax payees will have to fill only two challans against four needed previously while TDS filing can be done electronically by both companies and individuals.