The Indian Revenue Service, commonly known as IRS, is a department of the Indian government in charge of the administration and collection of direct and indirect taxes. It operates under the Department of Revenue within the Ministry of Finance and is overseen administratively by the Revenue Secretary and ministerially by the Minister of Finance as a central civil service under Group A of the executive branch of the Government of India.
The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs are two different statutory organizations that oversee the IRS’s two components, Indian Revenue Service (Income Tax) and Indian Revenue Service (Custom & Indirect Taxes) (CBIC).
Successful applicants attend a three-month Foundation Course at the Lal Bahadur Shastri National Academy of Administration (LBSNAA) in Mussoorie, Uttarakhand, following selection. After that, IRS(IT) Officer Trainees (OTs) complete a 16-month specialized training program at Nagpur, Maharashtra’s National Academy of Direct Taxes (NADT).What kind of training do the OTs undergo at NADT The directly recruited IRS(IT) officers receive sixteen months of induction training at NADT each year. To help the Officer Trainees develop the information and abilities they need to work effectively and efficiently as tax administrators, the training is divided into two parts. 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 to maximize revenue.
The first module has a strong emphasis on providing in-depth theoretical input in areas including Advanced Accounting and Finance, Business Laws-I, and Theoretical Concepts and Practical Application of Direct Tax Laws. Additionally, a two-week Field Attachment and a one-week Parliamentary Attachment are included. Additionally, OTs receive brief training at the Sardar Vallabhbhai Patel National Police Academy (SVPNPA), Hyderabad, the LBSNAA, Mussoorie, and NACIN, Faridabad. The first module’s final exam is followed by the first departmental examination.
The second module includes On-The-Job Training for around eight weeks, followed by Bharat Darshan, and a Financial Attachment for 2 weeks. Through a one- or two-week overseas attachment in France, the Netherlands, Australia, Malaysia, South Africa, the US, or Singapore, the OTs are also exposed to international tax procedures. The subjects of 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 provide additional training for OTs in the application of theoretical concepts and the development of practical skills.
At the time of Valediction from NADT, Officer Trainees are also required 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.
The tax policy is not limited to raising revenue. The tax policy is a component of the government of India’s overall strategy and is used to further a number of other goals for the nation’s growth. The IRS officers develop appropriate direct tax policy interventions based on their experience in the field and other pertinent information from a variety of sources, which they then report to the government through the CBDT.
In order to prevent the abuse of international financial systems for tax avoidance and evasion, IRS employees are also responsible for negotiating international agreements with other tax jurisdictions. India has been actively participating, among other things, in the development of the new international standards for the automatic exchange of information, which would allow the tax authorities to automatically receive information about taxpayers who hide their money in tax havens and offshore financial centres through complex entities with opaque ownership.
An IRS officer’s primary responsibility in a field formation is to levy and collect taxes. Therefore, this role is carried out by the majority of officers in some capacity. Taxpayers are required to pay their taxes in accordance with the law’s mandates under the regime of voluntary compliance, which serves as the major driver of the tax collection process.
| Sl. No. | Cadre | Pay Scale |
|---|---|---|
| 1. | Principal Chief Commissioner of Income Tax | Rs. 80,000 (fixed) |
| 2. | Chief Commissioner of Income Tax | Rs. 75,500–80,000 |
| 3. | Principal Commissioner of Income Tax | Rs. 67,000–79,000 |
| 4. | Commissioner of Income Tax | Rs. 37,400–67,000 + grade pay of Rs. 10,000 |
| 5. | Additional/Joint Commissioner of Income Tax | Rs. 37,400–67,000 + grade pay of Rs. 8,700 / Rs. 15,600–39,100 + grade pay of Rs. 7,600 |
| 6. | Deputy Commissioner of Income Tax | Rs. 15,600–39,100 + grade pay of Rs. 6,600 |
| 7. | Assistant Commissioner of Income Tax | Rs. 15,600–39,100 + grade pay of Rs. 5,400 |
| 8. | Reserves (Group ‘A’) | Rs. 15,600–39,100 + grade pay of Rs. 5,400 |
Source :- Central Board of Direct Taxes, Government of India
| # | Pay Grade in the Government of India | Designations | Position in the Government of India |
|---|---|---|---|
| 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 |
Source :- Central Board of Direct Taxes, Government of India
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