Thursday, May 23, 2013

Cabinet approved Income Tax cadre review and restructure

Today, as expected, Union cabinet approved 20,751 additional posts for Income Tax dept. as a part of revamp, stated Finance Minister P. Chidambaram.

The Cabinet today approved a proposal to create additional 1,349 additional posts in the Indian Revnenue Services (IRS) cadre and 19,402 in the non-IRS cadres.

An additional expenditure of Rs 449.71 crore per annum is likely to be incurred on creation of additional posts and upgradation of some existing posts, Finance Minister P Chidambaram told reporters after the Cabinet meeting.

This additional expenditure would be more than compensated by the increased revenue of more than Rs. 25,000 crore per annum proposed to be generated as a result of this exercise, he said.

This means that extra employee would add to extra Rs 1.2 crore the tax kitty, while he will cost extra Rs 2 lakh to the government a year on an average.

The move will also helpe the Income Tax Department provide better tax payers services, the Finance Minister said.

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