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Complete Guide To Become An Income Tax Officer In India

Updated: Aug 18, 2022

An income tax officer (ITO) investigates all income tax issues and monitors the tax flow to guarantee proper income tax filing. Working as an income tax officer may be rewarding if you enjoy studying business and working with statistics. Understanding an ITO's job responsibilities and selection procedure might help you pursue a career as an income tax officer. In this post, we will look at how to become an income tax officer, the selection procedure, tasks, critical talents, and remuneration.

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What exactly is an income tax officer?

Income tax officers are tax specialists who work in the department of revenue. They are in charge of the Central Board Of Direct Taxes' Information Technology (CBDT). The income tax department is part of the ministry of finance, and an ITO is primarily responsible for income tax investigation and assessment.

How to Become a Income Tax Officer

There is no such thing as direct recruiting for this position. You start as an income tax inspector and then advance through the ranks to become an income tax officer following a departmental promotion. By passing the staff selection commission-combined graduate level (SSC CGL) test, you can become an income tax inspector. The processes to becoming an income tax officer through the SSC CGL test are outlined below.

1. Pursue a bachelor's degree

A bachelor's degree is the minimal educational requirement for CGL. To apply for the CGL exam, you must first get a bachelor's degree. You can earn your diploma in any field. After graduating, you must complete all of the qualifying requirements to take the test.

2. Meet the qualifying requirements

Before taking the CGL test, be sure you meet all of the qualifying conditions. A bachelor's degree from any recognised university is required for this test. The age range is 18 to 30 years. The following categories are exempt from the higher age limit:

Five years for SC/ST

Three years in the OBC category

Persons with Disabilities (PWD): 10 years (Unreserved)

13 years in the PWD (OBC) category

PWD (SC/ST) category: 15-year-old applicants who lived in Jammu and Kashmir between January 1, 1980, and December 31, 1989: 5 years of service

defence personnel impaired in operation during conflicts with any foreign nation or in a troubled region and dismissed as a result:

Defence personnel impaired in operation during hostilities with any foreign nation or in a troubled region and dismissed as a result: three years (SC/ST): eight years

3. The following are the citizenship criteria for this exam:

citizens of India,

or subjects of Nepal,

or subjects of Bhutan,

or a Tibetan refugee who came to India before January 1, 1962 with the intention of permanently settling in India,

or an individual of Indian origin who has moved to India permanently from Sri Lanka, Pakistan, Burma, East African countries of Kenya, Uganda, the United Republic of Tanzania, Zambia, Ethiopia, Malawi, Zaire, or Vietnam

Candidates with nationalities other than Indian require a certificate of eligibility granted by the Indian government.

Physical qualifications for the exam include the ability to run one mile in the allotted time. The height requirement ranges from 152 to 162 cm depending on the location, while the chest size need is 75 cm for applicants from the west plains region and 76 cm for those from the east plains region. Depending on the location, the weight requirement ranges from 47 to 50 kg.

4. Register for the SSC-CGL test.

You can apply for the CGL test online if you satisfy all of the eligibility requirements. The application cost is one hundred dollars. There is no application cost for those who are SC, ST, PWD, or ex-servicemen. The application form filling process is divided into two stages.

Part I consists of a one-time registration, while Part II consists of completing the application.

SSC conducts the exam in three tiers. The candidate can pass all three levels to become an income tax inspector.

5. Take the Tier I test.

Tier I exams are often known as prelims tests. It is a computer-based test with solely objective type, multiple-choice questions. It is a qualifying level test, and its results are not factored towards the overall ranking. Tier I examinations consist of four subjects: general intellect and reasoning, general awareness, numeric aptitude, and English comprehension. You must pass this test in order to sit for the tier II exam.

5. Write the tier II exam

The tier II exam is also called the mains exam. It is a computer-based examination and consists of objective type, multiple-choice questions like tier I. There are four papers in tier II in which paper I and paper II are compulsory for all posts. Paper III and IV are for candidates who apply for other posts. Paper I is of quantitative abilities of 200 marks, and paper II is of English language and comprehension of 200 marks. Marks of tier II exams is important for the final ranking.

6. Write the tier III exam

The tier III is a descriptive paper in English or Hindi. It is a pen-paper mode test. This paper consists of 100 marks, and its marks keep weight-age for the final ranking. There is no negative marking in this paper and the time allowed is an hour.

7. Complete document verification and medical examination

The commission shortlists candidates to appear in the document verification based on tier II and tier III performance. After document verification, shortlisted candidates undergo a medical fitness examination. The candidate who meets the physical requirements and passes the medical examination can become an inspector in the income tax department.

8. Qualify for the departmental exam for income tax officer

After serving as an inspector for three years, you can become an income tax officer. You can clear the departmental exam for confirmation and the income tax officer departmental exam for promotion to become an ITO. The ITO departmental exam comprises 100 questions of multiple choice. The paper is of 200 marks, and the time allowed is two hours. After clearing this exam, you can get a promotion to income tax officer depending on the number of vacancies and seniority.

What are the duties of an income tax officer?

Following are the prime responsibilities of an income tax officer:

  • assists in the collection of revenue for public welfare and the administration of government institutions by maintaining tax accounts from various departments

  • ensures that companies and citizens are paying taxes to the government

  • sends notices and making frequent checks for frauds and other unlawful actions are all part of the job of an income tax officer

  • looks into claims of failure to pay taxes

  • analyses court information for the status of claims, mortgages, financial statements or investigates assets of persons through third parties who do not pay taxes

Necessary skills for an income tax officer

Below are the skills that can help them succeed in their career as ITO:

  • Numeracy: An income tax officer evaluates the financial information of people, corporations, government and public officials. A career as an income tax officer entails strong arithmetic abilities.

  • Attention to detail: An income tax officer needs to pay attention to detail while researching, surveying, correcting and evaluating income tax during the job.

  • Communication: Interaction with accountants, businesses, attorneys and coworkers is a part of the job of an income tax officer.

  • Problem-solving: Looking into claims, such as being incapable of paying taxes and other tax-related problems, requires good problem-solving skills.

  • Time management: Working as an income tax officer sometimes requires long hours during the closing of the fiscal year. They are to ensure that assessors file correct ITRs and that there is no fraud or asset concealment.

What is the salary of an income tax officer?

The pay scale of an income tax officer is ₹9,300-34,800 + grade pay of ₹4,800/₹5,400.

Below are the pay scales of different posts in income tax departments:

  • Income tax officer: ₹9,300-34,800 + grade pay of ₹4,800/₹5,400

  • Posts in assessing officer cadre: ₹15,600-39,100 + grade pay of ₹6,600/₹9,300-34,800 + grade pay of ₹4,800/4,200

  • Posts in private secretary cadre: ₹9,300-34,800 + grade pay of ₹4,800/4,200

  • Inspector of income tax: ₹9,300-34,800 + grade pay of ₹4,600

  • Executive assistants: ₹9,300-34,800 + grade pay of ₹4,200/

  • Tax assistant/steno III/driver: ₹5,200-20,200 + grade pay ₹2,400

  • Notice server/lower divisional clerk/ driver: ₹5,200-20,200 + grade pay of ₹1,900

  • Group C: ₹5,200-20,200 + grade pay of ₹1,800