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Unveiling the Exciting Career Path of an Income Tax Office

Career as a Income Tax Office

There are many government jobs that attract people. They offer good pay, a secured career and a chance to serve the nation. One of such career is of Income Tax Officer. While in movies, we have seen how most of people fear them as they keep on raiding people for non-compliance. But this career is more than just raiding. Income Tax Officers play a crucial role in a country’s economy by ensuring the Government earns all due revenues.

As an Income Tax Officer, you formulate the policies related to direct taxation. You are a part of the Government function which ensures the enforcement of tax laws. You keep a vigil on the income declaration of people. You assess taxes, examine tax returns filed by individuals and organizations, raise questions about tax deposited if there is any, examine and investigate cases of tax fraud, and overall, ensure that the Government earns the due taxes from the income of individuals and organizations that are due.    

Why become an Income Tax Officer?

Income Tax Officers may work in two primary roles:

Income Tax Officer: The income tax officer is responsible for the direct tax collection for the Government of India. A direct tax is the income tax that individuals, companies, partnerships, etc. have to pay to the government. They also take care of any gifts tax, super profit tax (like prize money from Kaun Banega Crorepati), wealth tax, capital gain tax (profits from sharing of shares or other investments), etc.

Customs and Excise officers, as well as Goods & Service Tax officers, take care of other indirect tax earnings of the Government including GST, the excise tax on alcohol and tobacco, customs duty, tax on diesel and petrol, etc.

Income Tax Officers are responsible for ensuring that every individual, company and other tax-paying entity follows and complies with the income tax laws, rules and regulations. They ensure that each tax-paying individual or entity declares the actual earning, assets and liabilities and pay the right amount of due taxes. They have the power to enforce tax laws and investigate violations of laws.

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What does an Income Tax Officer do?

As an Income Tax Officer, you might be handling the following roles and responsibilities:

  • You will maintain knowledge of all tax laws, changes in tax laws, of any accounting procedures and processes to duly evaluate financial information.
  • You will maintain records for each tax filing entity or individual, including contacts, telephone numbers, and actions are taken.
  • If required you will contact taxpayers by mail or telephone to address discrepancies and to request supporting documentation.
  • You will send notices to taxpayers when accounts are not paid.
  • You will review filed tax returns to determine whether credits and deductions claimed are allowed by law.
  • You will conduct field audits and investigations of income tax returns to verify information or to update tax liabilities.
  • You will notify taxpayers of any overpayment or underpayment and either issue a refund or request additional payment.
  • Policy formulation: As an Income Tax Officer, you would be an integral part of the team who will be responsible for forming taxation policies. You will need to keep evaluating the existing policies and change them as per the need of the economy and the nation. These policies are not restricted to revenue. You will also assist the government of India through tax policies to address several other subjects leading to the development of the nation. These segments may include providing incentives or taking back incentives to different targets of the economy. For policy formation, you will also have to do intensive field research and take inputs from different sources and compile them together.
  • Tax administrator, investigator, quasi-judicial authority and prosecutor: As a tax officer, you will be directly involved in this. Although most of the detected tax collection in India is still a voluntary process as people pay taxes in India as per the mandate of law. However, not everyone complies with this rule. Many people do not comply as they suppress information, facts, tax theft and sometimes simple mistakes. You would be required to detect such mistakes from the taxpayer and promote them to pay taxes voluntarily. You can also do an investigation through a scrutiny process of returns, statements, surveys, bank statements, etc. You can also seize their property, bank accounts to complete the investigation. If a defaulter is found with a serious case, you are required to file a criminal case against such defaulters.

How to become an Income Tax Officer – Educational Requirement

Undergraduate studies after school:

  • There is no specific requirement to become an Income Tax Officer in India other than having a Bachelor’s degree. Thus you can graduate with any subject to be eligible for Income Tax Department:

Post Graduate studies:

  • You are not required to study beyond graduation to become an officer with the Income Tax department of India. However, you can take post-graduation in any stream and join IRS before you cross 30 years of age and Graduate level post before crossing 27 years of age.

Job Opportunities

The income Tax Officer job is a government of India job at the Income Tax Department. There is a strict hierarchy in the job, and there are three ways to enter into the service:

  • You may join as a Grade A officer with the post of Assistant Commissioner of Income Tax.
  • You may also join as a Grade B Officer with the post of Tax Assistant.
  • You may also join as an Upper Division Clerk.

Salary of an Income Tax Officer

  • At the entry-level, if you will join as a Grade A “Assistant Commissioner of Income Tax.” Your gross salary Rs. 56,1000 to 1,77,500 per month with a grade pay of Rs. 5,400 per month.
  • As a Deputy Commissioner of Income Tax, your gross salary will range from Rs. 67,700 to 2,08,000 per month and grade pay of Rs. 6,600.
  • As an Additional/Joint Commissioner of Income Tax, your gross salary will range from Rs. 1,23,100 to 2,15,900 per month and grade pay of Rs. 8,700.
  • As a Commissioner of Income Tax, your gross salary will range from Rs. 1,44,200 to 2,18,200 per month and grade pay of Rs. 10,000.
  • As a Principal Commissioner of Income Tax, your gross salary will range from Rs. 1,82,200 INR to 2,24,100.
  • As a Chief Commissioner of Income Tax, your gross salary will range from Rs. 2,05,400 to 2,24,400.
  • As a Principal Chief Commissioner of Income Tax, your salary will be fixed at Rs. 2,25,000 per month.
  • If you will join as a Grade B Tax Assistant, your monthly gross salary will be Rs. 25,500 to 81,100 with a grade pay of Rs. 2,400.
  • As Senior Tax Assistant, you will earn Rs. 35,400 to 1,12,400 per month with a grade
    pay of Rs. 4,200.
  • As Inspector of Income Tax, you will earn Rs. 44,900 to 1,44,400 per month with grade pay of 4,600.
  • As an Income Tax officer, you will earn Rs. 47,600 to 1,51,100 per month with a grade pay of 5,400.
  • Apart from the salary, you would also get several other benefits from the Government of India.

Career progression in Income Tax Officer profession

If you will join Income Tax Office as an IRS Officer, then you would start as a Grade an Officer “Assistant Commissioner of Income Tax”. After two years of service, you will be promoted to Deputy Commissioner of Income Tax. Within a few years, you will be promoted to Additional/Joint Commissioner of Income Tax. Few of you will rise to Commissioner of Income Tax and then Principal Commissioner of Income Tax. Some of you might become Chief Commissioner of Income Tax and finally the highest post of Principal Chief Commissioner of Income Tax.

If you join as a Graduate level, then you will join as a Tax Assistant, and later you will be promoted to Senior Tax Assistant. Later you will be promoted to Inspector of Income Tax and Income Tax officer. Some of you will rise above even to become Assistant Commissioner of Income Tax.

Income Tax Officer is a government job. There is a limited number of openings in the field. Also, the Government focuses on hiring people based on skills, but they do not compromise the selection. Thus, many times the number of seats remains empty. The number of jobs is not likely to be increased in the near future. Thus, if you are dedicated to this career, then only you should apply.

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