How To Become An Income Tax Officer

If you want to know the step by step process to become an income tax officer (aka income tax inspector) then you’re on the right spot.

In this guide, we’ll be talking about the qualification requirements, perks, role, salary & of course the right path to become an income tax officer.

In short, if you were looking out for a detailed guide on an income tax inspector…then you’ll love this post.

Let’s get started. 🙂

Table Of Contents:

Who Is An Income Tax Officer?

An income tax officer (ITO) aka income tax inspector, is a professional who works in the Income Tax Department is responsible for assessing the financial documents, assets & liabilities of an individual.

He/she also takes care of all the tax-related matters of the Central Board Of Direct Taxes (CBDI) & ready to investigate suspected tax fraud in their circle of area.

How To Become An Income Tax Officer?

There are two routes to become an income tax officer in India:

Route 1: Through SSC CGL examination

The first way to become an income tax officer in India is by appearing for the SSC CGL examination.

Combined Graduate Level (CGL) is an exam conducted by the Staff Selection Commission (SSC) in order to recruit some aspirants in various government departments including the income tax department.

In other words, Grade C & Grade B inspectors are recruited through this examination.

So, if you want to achieve your goals then you can choose this route to fulfil your dream.

SSC CGL Syllabus

1. Preliminary Examination
SectionSubjectNo. Of QuestionsMaximum MarksTime
Part AGeneral Intelligence & General Awareness1001002 hrs
Part BArithmetic1001002 hrs
2. Main Examination
Written Exam SubjectMaximum MarksTime
General Studies (Reasoning & Awareness)2003 hrs
English Comprehension1002 hrs 20 mins
Arithmetic Abilities2004 hrs
Language1002 hrs 20 mins
Communication Skills & Writing2002 hrs 20 mins
3. Personality Test or Interview

The personality test or an interview is the final stage of the SSC CGL examination.

SSC CGL Selection Process

To increase the chances of getting selected for the income tax inspector post you need to perform well in each stage of the SSC CGL Exam.

There are a total of 4 stages in the SSC CGL Examination…the exact details are given in the table below:

TierTypeMode
Tier IMultiple-Choice QuestionsOnline
Tier IIMultiple-Choice QuestionsOnline
Tier IIIDescriptive Paper In English/HindiOffline
Tier IVSkill Test/Computer Proficiency TestOffline

SSC CGL Cut-Offs

In this section, we will talk about the cut-offs for the income tax inspector profile under the SSC CGL examination.

Being the income tax officer post is very lucrative…the cut-offs for this profile is higher than all other profiles that come under the SSC CGL examination.

Below you’ll get all the necessary information about SSC CGL cut-offs for this profile in India.

CategoryCut-Off (Out of 700)
General578.75
OBS557.75
ST511.50
SC515.25
OH489.50
HH473.00
Ex-Serviceman482.50

Route 2: Through UPSC examination

Another lucrative way to become an income tax inspector in India is by appearing for the civil services exam organised by the Union Public Service Commission (UPSC).

In this exam, you need to opt for Indian Revenue Services to achieve what you want.

Remember,

You need to clear all the stages of the examination conducted by the UPSC to become an Assistant Commissioner of Income Tax (Group A Post).

Eligibility Criteria Of An Income Tax Officer

You must adhere to the criteria set by the Staff Selection Commission to appear for the examination.

The eligibility requirements for becoming an income tax officer in India are as follows:

1. Age

For the general category, the age limit must not exceed 30 years.

The details of relaxation of age for other categories are given below:

S.r. No.CategoryAge Relaxation
1OBC3 years
2ST/SC5 years
3PH + Gen10 years
4PH + OBC13 years
5PH + ST/SC15 years
6Ex-Servicemen (Gen)3 years
7Ex-Servicemen (OBC)6 years
8Ex-Servicemen (ST/SC)8 years

2. Educational Qualifications

A bachelor’s degree from a recognized university or board is required.

3. Qualifying Exam

You need to crack the SSC CGL Examination.

Perks Of An Income Tax Officer

An income tax officer in India enjoys the benefits of various perks. Apart from a good salary, there are many more allowances that are offered like:

  • Dearness Allowance (DA) on total pay (approx. 107%)
  • Transport Allowance (TA)
  • House Rent Allowance (HRA)
  • 30 liters of petrol
  • Mobile Bill

Dearness Allowance (DA)

One of the major perks enjoyed by income tax officers is Dearness Allowance (DA).

DA is nothing but the cost of living & it is calculated on the basis of the basic salary of an income tax inspector.

Currently, the Da of an income tax officer in India is 17% of the basic pay under the Seventh Pay Commission.

Transport Allowance (TA)

Transport allowance is another major perk that will be available to you as soon as you become an income tax officer in India.

Here are the details for the transport allowances based on the classification of cities in India:

City ClassificationTravel Allowance
X (Only 8 urban cities – Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune)3,600
Y (Towns with a population over 5 lakh)1,800
Z (Rural areas)1,800

House Rent Allowance (HRA)

When an income tax inspector expenses incurred towards rented accommodation…then he/she also have the benefit of HRA.

The house rent differs according to the city:

City ClassificationHRA (in %)
X (Only 8 urban cities – Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune)24
Y (Towns with a population over 5 lakh)16
Z (Rural areas)8

30 Litres Of Petrol

An income tax officer also enjoys the benefit of getting 30 litres of petrol every month by the government. 

Mobile Bill

The government also provides reimbursement facilities for all the monthly mobile billing expenses.

Role Of An Income Tax Officer

You might think life as an income tax officer is very lucrative…but the reality is there are countless responsibilities on the head of an income tax inspector in India.

Well in this section we will throw some light on these responsibilities.

Here’s the deal:

  • He/she is responsible for gathering the revenue for public welfare.
  • He/she also helps government institutions who takes care about maintaining tax from different departments
  • He/she ensures that the tax is properly collected from the businesses & citizens.
  • He/she takes the responsibility to punish individuals or business organisations who have filed an incorrect ITR or did not file an ITR.
  • He/she is also responsible for assessing the correct income of those who have filed their income tax returns.
  • He/she takes care of conducting periodic checks & sending notices to the people who are involved in the illegal activities.

So, these are some of the major roles of income tax officers in India.

Although, I have missed a lot my whole point was to prove to you that…a career as an income tax officer comes with dozens of responsibilities.

Salary Of An Income Tax Officer

On average, the income tax officers get around Rs.55,000/- to Rs.65,000/- per month in India.

Check out the complete distribution of in-hand salary of an income tax inspector below:

Pay Level Of PostsCity 1City 2City 3
Basic PayRs. 44,900Rs. 44,900Rs. 44,900
HRARs. 10,776Rs. 7,184Rs. 3,592
TARs. 3,600Rs. 1,800Rs. 1,800
DARs. 7,633Rs. 7,633Rs. 7,633
DA on TARs. 612Rs. 306Rs. 306
NPS Deduction 10% (Basic + DA)Rs. 5253Rs. 5253Rs. 5253
Gross EarningsRs. 67521Rs. 63929Rs. 60337
CGEISRs. 30Rs. 30Rs. 30
CGHSRs. 350Rs. 350Rs. 350
Government ContributionRs. 7,355Rs. 7,355Rs. 7,355
Total DeductionRs. 5,633Rs. 5,633Rs. 5,633
Total SalaryRs. 61,888Rs. 58,296Rs. 57407

Frequently Asked Questions

1. Can I become an income tax officer after 12th?

You need to be graduate in order to become an income tax officer. In short, you can complete an undergraduate degree then opt for the SSC CGL exam or the UPSC exam for Indian Revenue Services.

2. Which subject is best for income tax officers?

Subjects such as business mathematics, financial accounting, income tax law procedure, Indian tax system etc…are best for income tax officers.

3. Can a science student become an income tax inspector?

The short answer is Yes, you can become an income tax inspector after 12th science by completing your graduation & then appearing for the SSC Combined Graduate Level Examination or the UPSC Civil Services examination.

4. Which stream is best for income tax officers?

Creating a bright future as an income tax inspector does not depend on any education streams. Despite being a commerce, arts or science student you can easily achieve your goals with little dedication & effort.

5. Is graduation necessary for income tax inspectors?

Yes, you have to do a minimum of graduation in any of the education streams like arts, commerce or science.

Conclusion

And, that’s it for my comprehensive guide on how to become an income tax officer (ITO).

I hope now you have got a clear path to become an income tax inspector.

Now, I’d like to hear from you.

From when are you going to start working for your goal or you might have any other questions.

Either way, let me know in the comments section below. 🙂

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