Around 80 such centres would start functioning from Friday for direct taxes, while 50 would come up for indirect taxes, Finance Minister P Chidambaram said while inaugurating the launch of the centres.

After this, large taxpayer units would be set up in Delhi, Kolkata, Mumbai, Chennai and Bangalore to provide single window service to these assessees, he said.

The two initiatives are part of the Finance Minister's budget proposals. Elaborating various initiatives that his ministry has taken, Chidambaram said," On income tax front, we have lowered tax rates in 1997 and changed slabs in the last budget. Now, there is no reason for taxpayers to evade tax."

There can be no argument for avoiding income tax when exemption of Rs 1 lakh is given with savings provision of an equal amount and a threshold limit of 10 per cent, he said.

On indirect taxes also, rates were reduced, while other initiatives are underway to facilitate taxpayers file returns. An online mechanism will be introduced in two months' time for 5,500 big assessees, which contribute 80 per cent of excise duties, Chidambaram said.

There is already a mechanism for customs duty payers to clear their bills and pay taxes online, he added.

Pointing out that taxpayers may be avoiding tax out of fear, defiance and complete faith in their "immunity" to law, Chidambaram said the help centres would send a message that the state wants to collect taxes but would do so in a humane manner.