Indian Revenue Service (Income Tax)

Indian Revenue Service
Bhāratīya Rājasva Sevā

IRS (Income Tax)
Service overview
Founded1944; 80 years ago (1944)
(as Income Tax Service)
1953; 71 years ago (1953)
(as Indian Revenue Service IT)
HeadquartersNorth Block, New Delhi
Country India
Staff colleges
  1. National Academy of Direct Taxes, Nagpur, Maharashtra
Cadre controlling authorityDepartment of Revenue, Ministry of Finance
Minister responsibleNirmala Sitaraman, Minister of Finance
Legal personaliityGovernmental
Civil service
Cadre strength4192 (Income Tax) [1]
SelectionCivil Services Examination
Associations
  1. Indian Revenue Service IT Association
Service chief
Chairperson, CBDTNitin Gupta, IRS (IT)
Head of the civil services
Cabinet SecretaryRajiv Gauba, IAS
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The Indian Revenue Service (Income Tax) (IAST: Bhāratīya Rājasva Sevā), often abbreviated as IRS (IT), is the administrative revenue service of the Government of India. As a Central Service, it functions under the Department of Revenue of the Ministry of Finance and is under the administrative direction of the Revenue Secretary and the ministerial command of the Minister of Finance. The IRS is primarily responsible for collecting and administering direct taxes accruing to the Government of India.

The IRS (Income Tax) is controlled by a statutory body, the Central Board of Direct Taxes (CBDT). The duties of the IRS (IT) include providing tax assistance to taxpayers, pursuing and resolving instances of erroneous or fraudulent tax filings, and formulating and enforcing policy concerning income tax in India.

In the 2015 fiscal year, the IRS (IT) processed 3,91,28,247 returns[2] and collected ₹6.95797 lakh crore (equivalent to ₹11 trillion or US$130 billion in 2023) in gross revenue, spending ₹6 (equivalent to ₹9.00 or 11¢ US in 2023) for every ₹1,000 (equivalent to ₹1,500 or US$19 in 2023) it collected.[3] The relative contribution of direct tax to the overall tax collection of the Central Government has risen from about 36% to 56% over the period of 2000–01 to 2013–14. The contribution of direct tax-to-GDP has doubled (from about 3% to 6%) during the same period.[4]

History

Direct tax in the form of an income tax was introduced by the British in India in 1860 to overcome the difficulties created by the Indian Rebellion of 1857.[5] The organizational history of the Income-tax Department, however, starts in the year 1922, when the Income-tax Act, 1922 gave, for the first time, a specific nomenclature to various Income-tax authorities. In 1924, the Central Board of Revenue Act constituted a Central Board of Revenue - the statutory body with functional responsibilities for the administration of the Income-Tax Act.

Commissioners of income tax were appointed for each province and assistant commissioners and tax officers were placed under their control.[6] Officers from the Imperial Civil Services (ICS) manned top posts and the lower echelons were filled through promotions from the ranks. The Income Tax Service was established in 1944, and was subsequently reconstituted as the Indian Revenue Service (Income Tax) in 1953.

In 1963, given the increasingly complex roles and responsibilities of administering direct tax in India, the Central Board of Direct Taxes was constituted as a statutory body under the Central Board of Revenue Act, 1963.[6]

Recruitment

There are two streams of recruitment to the Indian Revenue Service. IRS officers may enter the IRS by passing the Civil Services Examination (CSE). The CSE is a three-stage competitive selection process consisting of a preliminary examination, the main examination, and an interview. It is administered by the Union Public Service Commission (UPSC).[4] IRS officers recruited in this way are called direct recruits.

Some IRS officers are also recruited from Central Services (Group B) of Income Tax Service (Group B). Group 'B' officers are gradually promoted over several years of service. The current ratio of the two streams at the entry-level is kept at 1:1.[7] All IRS officers, regardless of their mode of entry, are appointed by the President of India.

Training

After selection, successful candidates undergo a 3-month Foundation Course at the Lal Bahadur Shastri National Academy of Administration (LBSNAA) in Mussoorie, Uttarakhand,[8]

Thereafter, IRS (IT) Officer Trainees (OTs) undergo a 16-month specialised training at the National Academy of Direct Taxes (NADT), in Nagpur, Maharashtra.[9]

National Academy of Direct Taxes

National Academy of Direct Taxes in Nagpur, Maharashtra is the staff training college of the IRS (IT).

Sixteen months of Induction Training is conducted for the directly recruited officers of IRS (IT) at NADT each year. The training is designed into two modules in order to enable the Officer Trainees to acquire the knowledge and skills they need to function effectively and efficiently as tax administrators. In particular, training prepares OTs to deliver quality taxpayer services, detect and penalize non-compliance, and understand the macroeconomic, taxation, and fiscal policy of the Government of India in order to maximize revenue.[10]

First Module

The First Module emphasizes giving intense theoretical inputs in the subjects such as Theoretical Concepts and Practical Application of Direct Tax Laws, Advanced Accounting and Finance, and Business Laws-I.[11] It also includes a week-long Parliamentary Attachment, and a two-week Field Attachment.[12] OTs also undergo short-duration training at NACIN, Faridabad, LBSNAA, Mussoorie, and the Sardar Vallabhbhai Patel National Police Academy (SVPNPA), Hyderabad.[13] The first Departmental Examinations are conducted at the end of the first module.[12]

Second Module

The second module includes On-The-Job Training for around eight weeks, followed by Bharat Darshan, and a Financial Attachment for 2 weeks.[13] Further, The OTs are also exposed to international tax practices through a one or two weeks International Attachment in France, Netherlands, Australia, Malaysia, South Africa, the US, or Singapore.[12][14] OTs are also trained to apply theoretical concepts and acquire practical skills through the subjects of Procedure/Techniques of Investigation and Drafting of Orders and Reports, Information Technology and Operations, Management and Administration in the Income Tax department, International Taxation and Transfer Pricing, Law of Governance and Ethics, and Business Laws-II.[11] A number of guest lectures are organized to familiarize the trainees with the best practices in the tax administration.[12]

Officer Trainees are also expected to complete a project on Direct Tax Provisions for the award of a master's degree in Business Law and Taxation from NALSAR University of Law, Hyderabad at the time of Valediction from NADT.[13][14][15]

Designations

The designations and time-scales within the Indian Revenue Service are as follows after cadre restructure:[16]

Pay Grade in the Government of India Designations Position in the Government of India[17]
1 Junior Time Scale Assistant commissioner of income tax / Entry-level (Probationer) Assistant Secretary
2 Senior Time Scale Deputy commissioner of income tax Under Secretary
3 Junior Administrative Grade Joint commissioner of income tax Deputy Secretary
4 Selection Grade Additional commissioner of income tax Director
5 Senior Administrative Grade Commissioner of income tax/additional director general Joint Secretary
6 Higher Administrative Grade principal commissioner of income tax Additional Secretary
7 Higher Administrative Grade + chief commissioner of income tax or director general Special Secretary
8 Apex Scale principal chief commissioner of income tax, CBDT chairperson, member of CBDT and director general of the Central Economic Intelligence Bureau Secretary

Major concerns

Corruption

In 2015, it was reported that as many as 108 IRS officers were under probe by the CBI for their alleged involvement in corruption.[18] From May 2009 to May 2010, the CBI had sought sanction for prosecution of 102 IRS officials posted in different parts of the country in connection with corruption cases.[19]

In 2016, the Ministry of Finance, dismissed 72 and prematurely retired another 33 Indian Revenue Service officers for non-performance and on disciplinary grounds.[20][21]

The IRS officials top the Central Bureau of Investigation's list of most corrupt bureaucrats.[22][23] In one case, a 1992 batch IRS officer was arrested for accepting a bribe of ₹2 crore in Mumbai.[24] Recently, in another case, some IRS officials were found to help certain companies evade payment of Service tax and related penalties of the order of ₹1 crore.[25] Also CBI raided premises of an income tax officer for demanding Bribe to the tune of ₹60 crore for covering up Stock Guru Scam.[26]

Murder of many officers

Even though IRS officers have to deal with sensitive postings in their career they are not provided adequate security. Many IRS officers in the departments of customs and income tax have been assassinated in the course of their investigations.[27]

Recent initiatives

Many new initiatives were taken by the Indian Revenue Service members to curb corruption in their respective departments and make the system more efficient and responsive to the needs of the taxpayers. Use of Technology widely reduced the scope for the abuse of power. Refund Banker scheme introduced in 2007 eliminated the scope for corruption in the Refunds of Excessive Tax collected by the Department.[28] Introduction of E-filing of Taxes[29] and effective implementation of Permanent Account Number (PAN) are some revolutionary steps that reduced the scope for corruption at all levels while improving the efficiency of the whole system. Use of Centralised Processing Center setup in 2010 at Bangalore of the Income Tax Department reduced unnecessary delays in processing returns.[30] These computerization initiatives have freed up the human resources in the department which are largely responsible for higher revenue collections.

Income Tax Ombudsmen was created in 2006 and is functional in 12 cities to look into tax related grievances of the public.[31] Department is also gearing to improve its tax payer's services with Sevottam Scheme. Under this scheme various initiatives such as Citizen Charter, Ayakar Seva Kendra (ASK) which is a single Window mechanism for implementing Sevottam through delivery of these services within the time lines promised in the Citizen's Charter were launched.[32] Aaykar Sampark Kendra consists of one National Call Centre and 4 regional Call Centres to aid the taxpayer were inaugurated by the Finance Minister.[33]

An IRS officer could rise up to the Apex Scale (Rs.2,50,000 fixed plus allowances) at the post of principal chief commissioner of income tax in the ITD. At the apex level, he can also get selected as a Member or Chairperson of the CBDT. The intermediate grades in this career progression are deputy commissioner, joint commissioner, additional commissioner, commissioner, principal commissioner, and chief commissioner of income tax. An IRS officer is also eligible to be selected as a member of the Income Tax Appellate Tribunal, Authority for Advance Ruling, Income Tax Settlement Commission, and Income Tax Ombudsman as per the prescribed eligibility criteria.

See also

References

  1. ^ "Information to be published under Section 4(1)(b) of the Right to Information Act, 2005., Central Board of Direct Taxes, 2014" (PDF). Retrieved 26 August 2018.
  2. ^ "Income Tax Return Statistics, Assessment Year 2014-15, Income Tax Department, India" (PDF). Retrieved 26 August 2018.
  3. ^ "Statistical Year Book India, 2017". Retrieved 26 August 2018.
  4. ^ a b "Service Profile for the Indian Revenue Service" (PDF). Department of Personnel and Training, Government of India. Retrieved 28 August 2018.
  5. ^ Raj Singh (1993). A synthesized study of Indian income tax structure (PhD thesis). Maharshi Dayanand University. hdl:10603/113003.
  6. ^ a b "History of Direct Taxation, Income Tax Department, Government of India". Retrieved 27 August 2018.
  7. ^ "Rule7(2), Indian Revenue Service Recruitment Rules, 2015" (PDF). Ministry of Finance, Government of India. Retrieved 28 August 2018.
  8. ^ "Batch Profile, 92nd Foundation Course" (PDF). LBSNAA. Lal Bahadur Shastri National Academy of Administration. Archived from the original (PDF) on 16 May 2018. Retrieved 28 August 2018.
  9. ^ "Overview of National Academy of Direct Taxes". NADT. National Academy of Direct Taxes. Retrieved 28 August 2018.
  10. ^ "Induction Training, National Academy of Direct Taxes". National Academy of Direct Taxes. Retrieved 30 August 2018.
  11. ^ a b Annexure A, Course Material for the Induction Programme for IRS Probationers (PDF), 2012-04-17, archived (PDF) from the original on 30 August 2018
  12. ^ a b c d Course Manual, 69th Batch of IRS, National Academy of Direct Taxes, Nagpur (PDF), 2015-12-10, archived (PDF) from the original on 30 August 2018
  13. ^ a b c " Volume 2, Issue 9, NADTree,... reaching Out Newsletter, September 2010 (pp 7), 2010-10-01, archived (PDF) from the original on 25 December 2017
  14. ^ a b "Organizational Tie-Up, National Academy of Direct Taxes". National Academy of Direct Taxes. Retrieved 30 August 2018.
  15. ^ " Blueprint of Approach for the Research Project For completion of the Programme of Master's Degree in Taxation and Business Laws, 2010-12-01, archived (PDF) from the original on 30 August 2018
  16. ^ Cabinet approves revamp of the income-tax department - Economic Times. Articles.economictimes.indiatimes.com (2013-05-24). Retrieved on 2013-07-19.
  17. ^ "Profile of the Indian Revenue Service" (PDF). Ministry of Personnel, Public Grievances and Pensions. Retrieved 21 December 2016.
  18. ^ "108 IRS officers under CBI probe for alleged corruption: Government". The Economic Times. 6 August 2015. Retrieved 21 December 2016.
  19. ^ "IRS officials top CBI corrupt list". The Asian Age. 4 July 2010. Retrieved 5 June 2011.
  20. ^ "For good governance, Finance Ministry fires 72 tax officers, retires 33 more". Business Standard. Retrieved 12 May 2016.
  21. ^ "Government takes strict action against defaulting/non performing tax officials/officers". Press Information Bureau. Retrieved 12 May 2016.
  22. ^ "IRS men top CBI list of most corrupt". The Times of India. 3 December 2004. Retrieved 23 December 2016.
  23. ^ "Top IT officer in CBI net is worth Rs 400 crore". Deccan Chronicle. 3 April 2015. Retrieved 23 December 2016.
  24. ^ "Income tax official, husband arrested for accepting Rs70 crore bribe in Mumbai". Daily News and Analysis. 17 April 2010. Retrieved 5 June 2011.
  25. ^ "CBI raids excise officials and steel majors". The Times of India. 20 April 2011. Archived from the original on 3 January 2013. Retrieved 5 June 2011.
  26. ^ Stock Guru scam: IT officer raided for 'Rs 60-cr bribe'. Indian Express (2013-01-15). Retrieved on 2013-07-19.
  27. ^ Babloo gets life term for Customs officer's death. Indian Express (2008-10-01). Retrieved on 2013-07-19.
  28. ^ "Refund Banker Scheme for taxpayers extended to 9 more cities". Business-standard.com. 2009-10-19. Retrieved 27 October 2012.
  29. ^ "taxfinanceinfo.com". taxfinanceinfo.com. Archived from the original on 2 December 2013. Retrieved 1 November 2018.
  30. ^ "Bangalore centre speeds up processing of I-T returns". The Hindu. Chennai, India. 20 June 2011. Archived from the original on 23 June 2011.
  31. ^ "Income Tax India PR website". Incometaxindiapr.gov.in. Archived from the original on 31 May 2014. Retrieved 27 October 2012.
  32. ^ "Aayakar Seva Kendra to make I-T filing easy - Bangalore - DNA". Dnaindia.com. 2012-01-28. Retrieved 27 October 2012.
  33. ^ "AAYAKAR SAMPARK KENDRA" (PDF). 15 April 2012. Archived from the original (PDF) on 24 April 2012. Retrieved 1 November 2018.

External links

  • Official Website of income tax Department of India
  • Official Website of Indian Revenue Service
  • Training Academy for Members of Indian Revenue Service - Income Tax
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