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 OFGROUP 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.