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Tuesday, March 24, 2009

Cadre review and restructuring report : Some Inside News.

The Income Tax Dept. is yet to submit it's report in this regard. As per our sources, the report is almost finalised. Different sub committees had shown their presentation in this respect. We could collect some part of the presentation of the restructuring report by our sources. For the benefit of our viewers, we represent the synopsis. It may kindly be noted that it is not an official publication.

CADRE REVIEW OF THE INCOME TAX DEPARTMENT

 

ANALYSIS OF FUNCTIONS AND RECOMENDATION FOR RANGE LEVEL ORGANISATION

 

 

 

Sub-Committee Members:

Sh. Vinodanand Jha, DIT (Inv.), Bhopal

Sh. J. Krishna Kishore, Addl. CIT, Hyderabad

Sh. Sanjiv Shankar, Addl. CIT, Delhi

Sh. Rajesh D. Menon, Rep. of ITGOA

 

 

 

VISION, MISSION AND VALUES OF INCOME TAX DEPARTMENT 

      Our Vision

      The Department will be recognized as a professional organization, collecting resources efficiently, considerate towards its clients, adapting and improving and promoting voluntary compliance.

 

      Our Mission

      To promote compliance with our direct tax laws, through caring taxpayer service and strict enforcement and thus realize maximum resources for the Nation.

 

      Our Values

      Integrity of conduct, Dedication to our duties and values, Professionalism in our work, Attitude of service to our clients and Fostering mutual confidence.

OBJECTIVES OF CADRE REVIEW

    To enhance the effectiveness of the service.

    Restructure the cadre as to harmonise the functional needs with the legitimate career expectations of its members

    Estimate future manpower requirements on a scientific basis over the review period

    Plan recruitment in such a way as to avoid future promotional blocks and at the same time prevent gaps building up

 

GUIDELINES

    Cadre Review should take into account:

 

ØBPR Exercise and Report

Ø6th Central Pay Commission Report

ØDOPT/ Government Instructions

FUNCTIONS OF RANGE

The main functions at Range Level are :

Enforcement of the Income tax, Wealth-tax and other direct taxes
laws which are complicated, fast changing and dynamic, subject to
Regular amendments including through the annual Finance Act,
through an integrated process of:
 
v      Receipt of Returns including those relating to Income and Wealth
 
(2) Receipt and dispatch of Internal and external correspondence
 
(3) Processing of Returns
 
(4)Record Keeping of Assessees files and Maintenance of
    Statutory/Administrative/Technical Records
 
(5) Issuance of Refunds
 
(6) Issuance of Notices
 
(7) Assessments and Re-assessments                                     Continued……

FUNCTIONS OF RANGE

FUNCTIONS OF RANGE

FUNCTIONAL CLASSIFICATION  OF RANGE

 

Broadly, the Ranges can be functionally classified as:

Ø  Corporate

Ø  Non-Corporate

Ø  In some charges we find a mix of both Corporate and Non Corporate assessees within the same Range.

 

Ø  Besides the above, Addl. / Joint CITs are posted in various other areas such as Exemptions, Audit, CIB, Investigation, Headquarters, ITAT, Systems/Computer Operations,  various Directorates, CBDT etc.

PRESENT OFFICER/STAFF STRUCTURE  OF RANGES

 

     Corporate ranges:

Ø   1Addl/ Joint CIT, with 1 ITI, 2 TA (For Inward and outward correspondence), 2 OS, 1/4th  Steno, 1/3 Peon

Ø   3 ACIT/DCIT each with 1 ITI, 2 TA/Sr. TA, 1/3rd Steno and 1/4th Group D

Ø   2 ITO and 1 TRO (Post usually vacant) each with 1 ITI, 2 TA/Sr. TA, 1/3rd Steno and 1/4th Group D

 

     Non-Corporate ranges:

Ø   1Addl/ Joint CIT, with 1 ITI, 2 TA (For Inward and outward correspondence), 2 OS, 1/4th  Steno, 1/3 Peon

Ø   1 ACIT/DCIT with 1 ITI, 2 TA/Sr. TA, 1/3rd Steno and 1/4th Group D

Ø   4 ITO and 1 TRO (Post usually vacant) each with 1 ITI, 2 TA/Sr. TA, 1/3rd Steno and 1/4th Group D

Source: Working strength in AP Charge

 

INCREASE IN WORKLOAD OF RANGES

Present workload and Projected:

RECENT  ISSUES WHICH WILL IMPACT THE FUNCTIONING OF RANGES

Ø    BPR Report.

Ø    Creation of New Directorates without providing  for additional staff.

Ø    Non filling of vacant posts and short fall at various level including additional CITs, Inspectors, Stenographers etc.

Ø    Substantial economic growth indicated by increases in turnovers and incomes, resulting in increasing  tax base.

Ø    Massive increase of 460% in collection of taxes which have risen from Rs. 68305 Cr in 2000-01 to Rs. 314468 Cr in 2007-08.

Ø    Massive increase of number of effective assessees from 2,30,02,276 in 2000-01 to 3,36,62,801 in 2007-08.

Ø    Massive increase in workload of assessment (including processing) from 3,37,28,373 cases in 2001-02 to 4,01,92,130 in 2007-08.

Ø    Increase in information flow from various sources including CIB, AIR and other internal and external sources, which require enquiries at Range level.

Ø    Implementation of OLTAS, e-filing of returns, change over to AST, overall increase in computerization processes at various levels etc.

Ø    The new file management system has given rise to several problems, which have led to poor access to files, particularly back records.

Ø    The quantum of scrutiny assessments in area such as central circle have increased substantially. CAS has increased the scrutiny quantum in other ranges.

 

IMPACT OF BPR

      Separation of routine and assessment/ core functions through the medium of BOD and COD units, is a welcome feature, as it will enable Ranges to focus on core functions of investigation and assessment.

      The BPR implementation should take into account the need for easy and timely access of the files to the assessing officers. This is particularly necessary for carrying out survey related activities, reopening assessment u/s 147, carrying out enquiries, gathering intelligence, verification of third party information etc.

      Large section of Indian economy is in the unorganized sector. It is a matter of fact that substantial portion of the economic transactions are unaccounted, mostly made in cash and outside the banking channels. More than 90% of the population do not have access to computers. The BPR should take the peculiar features of Indian economy into account as otherwise, substantial section of the economy would be lest out, which will go against the objective of widening of tax payer base.

      Implementation of BPR should not result in reduction of  staff, particularly at the level of inspectors and stenographers, in view of the massive projected increase in work load in the near vicinity.

 YEAR WISE TOTAL TAX REVENUE (Incl. Projected)

(Source upto 2007-08:Adminstrative Hand book. Projections are based on average growth rate of preceding  10 years)

WORKLOAD AND DISPOSAL OF INCOME TAX CASES DURING THE LAST 10 YEARS AND PROJECTION
(Source upto 2007-08:Adminstrative Hand book. Projections are based on average growth rate of preceding 10 years)


NUMBER OF EFFECTIVE ASSESSEES
 (Source upto 2007-08:Adminstrative Hand book. Projections are based on average growth rate of preceding 10 years)

 

 

F.Y.        Company        Individual         HUF    Firms       Trusts     Others          TOTAL

1996-97       227228        9761426       412470        1158319       49629 34471 11643543

1997-98       274319        11194953     437251        1172647       51865 36701 13167736

1998-99       295327        15135956     469730        1228023       83847 41328 17254211

1999-00       309627        17653745     507843        1272217       87165 46427 19877024

2000-01       334261        20662926     553194        1336861       63999 51035 23002276

2001-02       349185        23734413     607519        1378706       97272 58784 26225879

2002-03       365124        25935556     644489        1345232       117304        57224 28464929

2003-04       372483        26624224     654848        1338613       154276        57952 29202396

2004-05       373165        24792990     620468        1235373       71375 65190 27158561

2005-06       382021        27370659     642759        1234424       74543 58077 29762483

2006-07       398014        29355248     761439        1241642       75610 71184 31903137

2007-08       498066        30868243     780853        1368373       74077 73189 33662801

 

2008-09       536417        34418091     828485        1390267       80670 78678 37332608

2009-10       577721        38376171     879023        1412511       87850 84579 41417855

2010-11       622206        42789431     932643        1435111       95669 90922 45965982

2011-12       670116        47710216     989534        1458073       104184        97741 51029864

2012-13       721715        53196891     1049896       1481402       113456        105072        56668432

2013-14       777287        59314533     1113940       1505104       123554        112952        62947370

2014-15       837138        66135704     1181890       1529186       134550        121423        69939891

SUGGESTED WORKLOAD PER RANGE

      Keeping in view with the massive increase in work load projected for the coming years and the need to increase the tax base and also improve the investigation process, the following work load per range is suggested:

 

 

Officer               OS          ITI           Sr TA / TA          Steno         Group D

 

Addl. CIT      02          02               03                  01                   01

 

ACIT/DCIT    -            03                02                01                    01

 

ITO              -            02                02                01                   01

 

TRO              -           02                02                01                    01

 SUGGESTED STRENGTH OF RANGES

      It is suggested that a number of ranges may be decided in accordance with the above stated ideal/desirable  work load per range i.e. 6000 per corporate range and 50000 for non corporate range. Accordingly,  the following strength of Ranges is suggested:

                           2007-08                     2011-12                     2014-15

                 Assessees    Ranges    Assessees     Ranges     Assessees    Ranges

Corporate          498066      83        670116        112           837138       140

(@6000 Assessees

per Range)

Non Corporate 33164735    663    50359748       1008        69102693     1382

(@50000 Assessees

 per Range)

 

Total              33662801     746    51029864        1130       69939891     1522

SUGGESTED STRENGTH OF OFFICERS CORPORATE RANGES

                               2007-08             2011-12           2014-15

No. of Ranges             83                     112                  140

 

Addl. CIT                   83                      112                  140

 

ACIT/DCIT                249                     336                  420  

 

ITO                          332                     448                  560

 

TRO                         83                       112                  140

 

SUGGESTED STRENGTH OF
GROUP C & D POSTS PER OFFICER

      The Group C & Group D posts may be increased in accordance with the afore said increase in number of officers as per the following suggestions:

CREATION OF SPECIAL RANGES

    Keeping in view the increase high volume cases both in terms of turnover and profitability, several suggestions have been received for revival of special ranges to be headed by JCIT/Addl. CIT level officers. It was also felt that this move will remove the burden of assessments from range heads, who can now exclusively concentrate on supervisory and managerial functions. If this move is adopted, it is suggested that 250 special ranges may be created, one in each CIT(Admn) charges. In large metros, two special ranges per CIT(Admn) charge may be created.

      Another suggestion received was to create a system of close monitoring, audit and supervision of assessment by range heads, as an alternative to creation of special ranges.

OTHER CHANGES SUGGESTED

    Financial powers at Range level

    Functional autonomy

    Industry/ Trade based Jurisdiction

    Improvement of Record Keeping and File management

    Tax Payers Assistance Cell at Range Level

    Decentralisation and Delegation

    Real-time, Online  E- Reports

    Range level training programmes, study circles, seminars, exchange of ideas and knowledge

    Intelligence Units at Range Level

 We will try to provide more information in this regard as and when available.

Source : Did not want to be named.


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