CLOSE on the heels of the voluntary retirements of a dozen officers two months ago, another set of officers from the Indian Revenue Service (IRS), the finance ministry’s arm for collecting direct taxes, have put in their papers. Many of the officers, it is learnt, are likely to take up more lucrative posts with the private sector, sooner or later.
The erosion of IRS rank officers is paralleled by a number of high-level exits from the Income-tax Appellate Tribunal (ITAT), a quasi judicial body that decides on direct tax disputes, administered by the law ministry. Three members of the rank of additional secretary have resigned in a span of six weeks. Though these officers do not admit that they are leaving the service to join the private sector, sources close to them said many of them are set to take up lucrative posts with corporate majors, including the Indian arms of multinational companies.
Their predecessors who have prematurely left the service are now consultants to companies or big accounting firms. Those who have put in their papers now are also likely to tread the same path. Acting as consultants is the most commonly-resorted practice for veering around the government’s rule that bars civil servants from taking up jobs for up to a year after resigning.
Leading the pack now is AK Bal, currently commissioner, income-tax department, Surat. Mr Bal, a 1983 batch IRS officer with over 10 years to go before retirement, had an illustrious tenure with the IRS, spanning over 25 years. Mr Bal had also served two stints on deputation, first as special director, Enforcement Directorate and later as deputy chairman, Bombay Port Trust (BPT).
While at ED Mumbai, he presided over the transition of FERA into FEMA. The transition, which also featured a sunset clause, required registration of over 25,000 cases in a single year. BPT saw a turnaround during the time Mr Bal was serving as the deputy chairman there.
In the income-tax department, he was instrumental in unravelling the infamous “bogus sale and lease back” deals, a dubious accounting jugglery for claiming depreciation on nonexisting assets.
When asked about the reason for his exit, Mr Bal said: “Due to personal reasons”. But he added that the IRS is a prestigious service and that he had enjoyed his tenure. It is learnt that atleast half a dozen companies are currently wooing him. Nishi Nair, commissioner, income-tax, too, has resigned. Ms Nair is reportedly taking up an overseas project with the private sector.
A 2004 batch IRS officer, Saraswati Padmanabhan, currently a member of the investigation wing of the department, has put in her papers too. She is planning to join a non-government organisation. Her resignation has stirred a controversy as she has put in her papers immediately after sending a tax notice to a Hollywood megastar. However, both Ms Padmanabhan and her seniors in the department, have denied any link with her notice to the star and her resignation.
SSN Moorthy, chairman, CBDT, told: “We cannot stop officers from leaving the department. It is their choice.” As the erosion of IRS continues, the reports of resignations are coming in from ITAT, too. DR Shah, member ITAT, who has seven more years to go, resigned. He reasoned: “I want to live with my family. The ITAT rules don’t allow that.”
Wrong heading.The comment that the fault is with our system and with the irs leaving job is by me and not by Mr.Akhilesh. Plz.correct it.
i had leaved my company in 16th may 10 i had worked for 8.5 years in the same group now i am having 29 leaves in hand and my company is not incashing the same please guide me the procedure
My IAS Cousin left the Rank of Commissioner in a Central Department to join a Finance Company and says that earlier he used to bow down to the Ministers, whereas now the Ministers wait outside his cabin for his appointment …
Good lesson to our Politicians…
Dear Akhilesh,
I agree with u. It could be around 50k.My question is whether an irs is less capable than a MBA from reputed school.New comers have zeal to serve the nation,but in view of undignified situations faced like the one in ipl where pending investigation by the I.T.Dept.the opposition was demanding JPC,.These have demorilising effects.Many more may be stories inside,but I believe that the officer leaving may be fairer as mnc will not allow a corrupt officer to be in.Reasons behind leaving may be many including loss of respect
Dear, Shoaib, IRS getting lucrative salaries after sixth pay commission. Every IRS who initially appointed as ACIT in Bay Band – 3 gets Basic Pay 21000 + Grade Pay 5400 per month and further gets Dearness allowances 35%, HRA 20%, Transport Allowances 3200 + 35% DA. You can calculate the exact salary of newly recruited I.R.S.
Gone through upate comments.Could the the remuneration an irs gets i.e.20k 2 30k in the beginning be taken 2 b equal 2 what an MBA FROM reputed college gets i.e.50lacs and above in the beginning. Is an IRS is below in his ability to an MBA in MNC.The fault is in our system and not with an officer leaving the job.
Those officers have already done such things should be immediately catch by govt-not to protect but to nab -as perhaps the said officers ammesed such a huge unaccounted property which might be caught by the anti corruption branch because of strict action taken by our Hon’ble Finance Minister-which are now a days often comes on the headline news–to save their illegal assests etc they are escaping department before they are caught red handed !
There should be a law to be imposed to each sector-i.e. no officer/company employee should get a astronomical amount of salary/remuneration which is very much disproportinate to the Indian economical structure–this is the high time to raise voice by the businessmen/corporate entities.
Before the officers are allowed to go out there should be detailed inquiry into conduct of officer especially into (1) financial beginnings and present financial status (2) whether the official earlier involving in helping the company and associate/sister concerns. If yet seize all the assets, deprive all benefits etc. If the officer is honest the govt should make efforts to retain such people. The only philosophy the honest should be protected and rewarded; dishonest should be punished.
Why do they so, If we have joine to serve the government as a part of constitution then this is our moral duty that without any personal reason (directoly related to family)should not leave from there.
There are two folds for leaving the Government Job which gives such high esteemed post or place for work. If the Income tax officer or employee visit premises of any person even for his personal need the person will feels difficult to handle him. At such position Why these people are leaving such job is question for all. there are two reasons as said earlier one is he have ample money to survive without doing anything whole life and this money is by way of corruption and this person is thinking of getting trapped sometime in future like Sumitra Banerjee, or he is totally against the system means he is non corrupted which does not allow him to survive with these people. I request to the Government to make deep inquiry of these people and about their properties in and out side our country. If these people are having huge property which is not as per their income then there should be hard punishment for their wrongful act in the past while they are in service.
Besides the lure of big money in the private sector, honest officers find the atmosphere stiffling in the corruption ridden service. Hence they go.
Honesty and competence have never had any place in independent India’s bureaucracy, especially since the 1070’s. And, it must be accepted that, those who are honest and competent, but totally ‘unacceptable’ to the system, are compelled to seek greener pastures where at least competence is duly compensated for and honesty is NOT a requirement “in national interest” or as per any Conduct Rules. This was unthinkable for those civil servants, mostly-computer-illiterates, who had joined the Services till the late 1970’s.
This is a welcome change for the better perhaps, in view of the changed values.
Low pay package,higher accountability,fear of punishment,interference in working r important reasons.As far pay packages and perks are concerned,the 6th pay commission has failed 2 redress their grievances.The fault lies with the system they are in. It is no wonder they are leaving the jobs
To be clear, working with Government earns the name & fame but not money which may be the core requirement of many people. Many people working in Private sector is earning more than Government employees. In this point, Government should take necessary steps to withhold the Good officers by paying them in good manner. And my view is Government is making mistake.
Govt. should investigate, whether the officers leaving the revenue services are being rehabilitated for extending gratifications to their would be private employers or not? This should investigated by CBI not by senior revenue departmental officials.
Right people who does not come under pressure from higher ups, have to resign from the system.