CBDT Advisory to improve Tax Administration for 2016-17

CBDT Advisory to PR CCsIT / DsGIT / CCsIT, PR CsIT / CsIT and ADDL CsIT/JCsIT

ADVISORY TO SUPERVISORY AUTHORITIES

1. PrCCsIT/DsGIT/CCsIT

The PrCCsIT/DsGIT/CCsIT are the leaders of their respective regional field formations that are entrusted to administer the tax policies and plans to achieve the objective of revenue augmentation. They are the pivots of tax administration and have a major role to play in bringing systematic and methodical improvement in tax administration considering the expanse of field formations. The following are the areas in which the PrCCsIT/DsGIT/CCsIT can make significant contribution to improve tax administration:

• The Pr. CCsIT/DsGIT/CCsIT are responsible for overall achievement of the target set, including the Budgetary target within their respective regions. To attain the same, they should also monitor and supervise each area of activity specified under the Central Action Plan. Quarterly/periodic targets should be prepared for assessment and recovery out of arrear demand. A ‘Model Plan for Assessment Units’ has been drafted and placed at APPENDIX as an aid to draw up such regional plans and strategies for their respective regions for the achievement of overall target.
• Rationalization of work-load on the principle of equitable distribution, so as to ensure optimal utilization of human resources, should be taken at the This equalization is necessary at the level of assessment units as well as appellate authorities. The workload at the appellate levels needs to be regularly monitored and reviewed, preferably on a quarterly basis, on the basis of achievements and task at hand and responded to administratively. Impact of cadre restructuring and subsequent jurisdictional changes should be carefully assessed and responded to.
• An institutional mechatnism should be put in place to improve the quality and to bring uniformity in decision making by subordinate officer. if necessary, contributions from other Regions may be solicited.

• TDS is an important contributor to the direct tax collection kitty. TDS matters also have assessment/processing related connotations. TDS awareness amongst deductors is a constant work-in-progress due to changes in law and procedures as well as factors related to deductors themselves. However, AOs (TDS) are not stationed in every district of the region. It should be a prime responsibility of all Pr. CCsIT/CsIT to ensure that such awareness programmes are conducted in their Regions covering its full expanse. This will require co-ordination between both the assessment and TDS units. In multi-district jurisdictions, a plan should be devised so that such programmes are conducted in maximum number of districts within their jurisdiction.
• The Pr. CCsIT/DsGIT/CCsIT should inspect the work as per Instruction No. 16 dated 04.11.2008 in respect of CsIT (Appeals), CsIT (TDS)/CsIT (Audit)/ CsIT (CO) working directly under them.
• Review of assessments should be done by Pr. CsIT/AddlCsIT/JCsIT in accordance with Instruction No. 15 dated 01.11.2008. Pr. CCsIT/DsGIT/ CCsIT should ensure that the task is completed within the timeline given.
• Constant upgradation of human skills is a sine-qua-non for an effective and efficient tax administration. The emotional connect of all strata of the personnel of Department’s objective and ownership of its responsibilities helps in team building. To achieve maximum output from the human resource, it is necessary to engage in capacity building of the officials of all the grades by periodically hosting in-house seminars on topics where it is considered necessary. These can be on issues of law, procedures and other facets of administration. If required, the experts in the area may be engaged/ co-opted. This process should be separate from the regular training by the Departmental Training Institutes/Units.
• The Aaykar Seva Kendra (ASK) represents a single window system for registration of all taxpayer applications/returns. The Pr. CCsIT/DsGIT/CCsIT should monitor:

♠ Work relating to setting up of ASK in their region as per the list communicated by the Pr. DGIT (Logistics)/DIT(O&MS) and ensure that the ASK is made functional by 29.02.2017;

♠ Action on the ASKs taken up for IS 15700:2005 certification for F.Y. 201 6-17

♠ Complete the Internal Audit and Management Review of ASKs identified by DOMS by 31.10.2016

♠ Removal of Non-conformities found during the Internal Audit and Management Review and drawing up certificate regarding correction and preventive action by 31.12.2016.

• The Aaykar Seva Kendra (ASK) represents a single window system for registration of al taxpayer applications/returns. The Pr. CCsIT/DsGIT/CCsIT should monitor:

♠ Submission of construction proposals on unencumbered land(s) in possession of the Department by 31.10.2016

♠ Submission of proposals for reduction of shortage of office space by 50% by 31.12.2016.

♠ Reduction of shortage of residential space by 20% by 31.03.2017.

2. Pr CsIT/CsIT

The following are the areas in which pro-active leadership and supervision of PrCsIT/CsIT can make significant contribution to improve tax administration:

• The Pr. CsIT/CsIT/DsIT (Int. Tax) are responsible for achievement of the target set, including the Budgetary target within their charges. To attain the same they should also monitor and supervise each area of activity specified under the Central Action Plan. Guidance to authorities below in matter of assessments and procedures should be pro-actively engaged in. Quarterly/ periodic target set by Pr. CCsIT/DsGIT/CCsIT should be monitored regularly for achievement and adequate timely response;
• Steps to rationalize work distribution amongst the Assessing Officers should be taken at the earliest;
• An institutional mechanism should be put in place to improve the quality of and bring uniformity in the decision making by subordinate officers. Regular guidance should be given to them for achieving this objective. Learning from best practices from other Charges will improve the output in this area of work;
• Action for capacity building as devised in consultation with superior authority should be executed and training need analysis be done to decide on the area where such training may be immediately required;
• Action on centralization of search cases is an important area of work of Pr. Orders under section 127 of the Act for the transfer of jurisdiction over Income-tax cases not involving change of station should be done within one month of receipt of request. In other cases such action must be taken within 3 months of receipt of request;
• Review of assessments done in accordance with Instruction No. 15 dated 11.2011 should be completed within the timeline given. Follow up on the reviews done in the preceding year(s) should be completed and remedial action required should be ensured in deserving cases by;
• The Pr. CsIT should complete the Inspection work of the AddlCsIT/JcsIT/DcsIT/AcsIT in accordance with the Instruction No. 16 dated 04.11.2008;

• With regard to TDS awareness programme, the CsIT(TDS) should execute the plans drawn up by the superior authorities. However, Pr. CsIT may assist the TDS units to conduct seminars in offices within their charges;
• CsIT(TDS) & CsIT(Intl. Tax) are responsible for the supervision and implementation of the Central Action Plan target/activities related to TDS matters within their jurisdiction.

3. AddlCsIT/JCsIT

Addl. CsIT/JCsIT are at the first level of control and management of the tasks assigned to Assessment/TDS units. Their responsibilities include:

• Responsible for achievement of the target set, including budgetary target of their Range. They are required not only to monitor and supervise the work of the AOs but also to guide them on a daily basis. Quarterly/periodic target set by Pr. CCsIT/DsGIT/CCsIT should be monitored regularly for achievement and timely response. Challenges should immediately be communicated to the higher authorities
• Approval of refunds above Rs. 1,00,000/- be granted within one week of receipt;
• Review of assessments done in accordance with Instruction No. 15 dated 04.11.2008 should be completed within the timeline given. Follow up on the reviews done in the preceding year(s) should be completed and remedial action required should be ensured in deserving cases by;
• CsIT/JCsIT should complete the Inspection work of the ITOs in accordance with the Instruction No. 16 dated 04.11.2008;
• Especial attention towards achievement of targets related to Grievances should be done regularly.

Source- CENTRAL ACTION PLAN 2016-17- Released by CBDT on 20.06.2016