The Income Tax department should be 'friendly and courteous' towards the tax-payers while recovering levies, Union Finance Minister P Chidambaram said on Friday.

Inaugurating a Rs 38 crore (Rs 380 million) multi-storeyed tower for the department in Hyderabad, Chidambaram said this eco-friendly and centrally air-conditioned building would help IT employees to work in an atmosphere which is conducive to the tax collection.

Chidambaram said the IT department has taken up many user-friendly initiatives which has increased tax collection. He joined the Andhra Pradesh Chief Minister Y S Rajasekhar Reddy in complimenting the state's IT department for collecting Rs 10,186 crore (Rs 101.86 billion) last fiscal as compared to Rs 4,800 crore (Rs 48 billion) during 2002.

Central Board of Direct Taxes Chairman B M Singh said the department proposed to construct more such buildings in the country and also computerise the entire tax collection system in a phased manner.