Income tax Department has adopted IT to make the filing of returns faster, easier and to reduce the administrative cost. Adoption of e-filing in India has shown a positive growth over the years due to its intrinsic advantages. However, it is still very low in many states. The paper attempts to understand the level of awareness and adoption of e-filing of ITRs in India. The paper studies the perception of assessees towards e-filing system and the level of satisfaction. Both primary and secondary data were used based on 385 completed questionnaries received from the income tax payers in Karnataka. Statistical techniques like Mean, standard deviation, Chi-Square test, Phi and Cramer's V have been caliberated. Major difficutlies and the level of satisfaction have been highlighted. E-filing procedure further needs simplification, to educate and adopt aggressive, countrywide campaign for creating awareness along with making e-filing mandatory for all assesses irrespective of tax liability.