The income tax department is creating a mobile app through which users can file their tax returns, an official from the finance ministry said on Saturday, 14 November.

"We are developing a mobile app which can be used for filing income tax returns. There are some security-related issues, which we will resolve soon," said Anita Kapoor, Chairperson of the Central Board of Direct Taxes (CBDT), after inaugurating the "Taxpayers" Lounge at the India International Trade Fair (IITF) in New Delhi.

Online filing of tax returns has seen a sharp increase in recent years. Therefore, filings via mobile apps can make it even easier for the taxpayers, PTI reported.

Talking of direct tax, Kapoor said collections are "doing well" and the department was "keeping their fingers crossed", adding that the December collection of advance tax would give them a good idea.

The government targets to gather Rs 7.98 lakh crore as direct tax in the current fiscal year.

Kapoor said the high-level committee under former High Court judge R V Easwar, formed to simplify income tax laws, will submit its first report by January 2016.

"The panel has clear terms of reference. They are expected to give their first report in January. They can give it earlier if they deem it proper. They have sufficient time," she said.