Dangling carrot and stick, the Income Tax Department today issued notices to 35,000 more assessees for failure to file tax returns while Finance Minister P Chidambaram offered them a penalty waiver if they chose to clear their dues. 

The government's initiatives have already borne fruits with 10,000 assessees filing returns and clearing their dues, he told reporters here. 

The action of the tax authorities come on top of notices sent to 70,000 assessees recently for recovery of tax dues to shore up revenues which it is feared may fall short of the budget estimates in the current financial year. 

"A polite letter was sent to 35,000 such persons in the first lot. Two weeks ago we have sent letters, another lot of 35,000 persons. Today letters are being issued to a third lot of 35,000 persons," Chidambaram said. 

He gave an assurance that the I-T department would take a benign view of assessees volunteering to file returns and clear their dues and interest. 

"The tax authorities can take a benign view and waive the penalty. They have done so in numerous cases in the past. This is your opportunity to file your returns, pay your tax and interest, if any, and apply for waiver of penalty," he said urging the assessees to pay advance tax by tomorrow. 

"To those who have not filed their I-T returns so far, either for current year or for previous years, I have one simple message--it behoves you to file returns, it behoves you to pay advance tax by tomorrow," he said. (PTI)