Introduction – Income Tax Return, Audit is normally filled online at income tax department website. Herein I would like to discuss some basic knowledge about the working of income tax department. Generally, after become CA, it is very hard to go to department for the work of assessee and meet with the official of department because in article life, usually article did office work and audit, their principle never sent him at department. So it makes embarrass new CA that he don’t know about the department.
Hierarchy of Income Tax Department –
Income Tax department is divided in Circle with specific Area. For example jaipur is divided in 7 Circle for the basis of area.
Principal CCIT – he is the supreme boss of Income Tax Department, Jaipur. Normally we don’t need to contact him as our work is mainly limited up to CIT level. He is administrative authority.
Commissioner of Income Tax – Commissioner of income Tax, work is divided among 2 or 3 CIT, in big city and single in case of district headquarter. They are having power to jurisdiction their respective circle. CIT has power of section 263 and 264 of income tax act 1961 mainly, further if we want to transfer the file of assessee from one Income Tax officer to another Income Tax officer, then we have to contact his staff office. They do that work. If he feels that any Income Tax officer or Joint Commissioner is harassment us, then we can contact CIT directly. His order is bound on JCIT and their juniors.
Joint Commissioner of Income Tax – Each circle has 1 JCIT. He can be deputy commissioner of income tax or joint commissioner of income tax. He is almost chief of his circle. Income Tax officer and Assistant commissioner of Income Tax work under him. He is mainly admin authority. We can file complain about ACIT or ITO to him.
Assistant Commissioner of Income Tax – each circle has 1 ACIT. Big file normally having more than 20 Lakh Income Tax Return is handled by him. ACIT is two type officers. One person who has selection in SSC and after promotion from Inspector to ITO to ACIT or second IRS officer of UPSC, which get first posting as ACIT. Each ACIT has 1 staff room in which 1 inspector and 3 -4 other clerk staff work under him.
Income Tax Officer – he is lowest authority in Income Tax in case of assessment order. ITO is divided in Wards based on the location of circle. It can be ward 1(1), 1(2) so and so. He is also supported by 1 inspector and 2-3 cleak staff. Staff room is generally near ITO office.
Inspector – he is lowest admin authority. He works under the JCIT, ACIT and ITO. Office day to day work is normally done by him along with field work. Field work mean to go to office of assessee, check and verification fact of the assessee, make assessment order on the instruction of Income Tax Officer, Serve assessment order to Assessee. An inspector is selection based on exam of SSC. After 5-7 year of working, he being promoted as ITO.
Others –
1. SSC pass out person Join Department as Inspector and Retire normally as Joint Commissioner of Income Tax.
2. UPSC pass officer join department as ACIT and Retire normally as Member of Central Board of Direct Tax.
Investigation Wing – it is wing which deal with search and Survey operation. Its main work in collection of information of tax evasion and assessment them. They can sent information to ITO or ACIT for their reference or if there is major tax evasion, they can search or survey to the assessee on the written order of Joint Commissioner of Income Tax of Investigation Wing. Further Investigation wing is also divided in JCTI, ACIT and ITO level. It is separate wing working under the CIT of Investing matters.
Conclusion – I think this article is helpful to CA article and New Chartered Accountant. If their assessee is having any work in income tax department via reply of any notice to income tax department, refund issue, reply of notice under section 143(2) and other matters.
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