The Salary and the Perks of an Income Tax Inspector (ITI).

The Salary and the Perks of an Income Tax Inspector (ITI).

In the 6th Pay commission, the salary structure was based on Grade Pay. The Grade Pay (GP) of an Income Tax Inspector was Rs 4600/-, one of the highest in the entire portfolio of jobs. In comparison, the grade pay of a CBI Sub-Inspector was Rs. 4200/-. But things have changed since the implementation of 7th Pay commission. [The net in-hand salary came out to be about 9 times the grade pay in an X grade city]

The old structure of Grade Pay has been removed with the 7th Pay commission and a new structure based on the predefined basic pay has been implemented. See full chart here (https://7thpaycommissionnews.in/7th-cpc-pay-matrix-chart-for-level-6-to-9-gp-4200-to-5400/)  

Salary Calculation:-

In 7th pay commission, GP of Rs. 4600/- translates to a Basic of Rs. 44900/-.

Dearness allowance at present (as of 25.07.2018) is 7% i.e. Rs. 3,143/-

Travelling allowance in Delhi (X grade city) is Rs. 3600 + DA i.e. TA = 3600 + 7% of 3600 = Rs. 3852/-

House Rent allowance in Delhi (city X) is 24% of the Basic i.e. 24% of 44900 = Rs. 10,776/-

Total: – Rs. 62,671/- per month.

Thus an inspector of Income Tax will fetch a gross salary of Rs. 62,671/- per month in any X grade city. [It means the net salary of Rs. 56,000/- approx.]

Notes:

  1. HRA in Y and Z grade city is 16% and 8% of the Basic salary respectively.
  2. TA in Y and Z grade cities is 1800 + DA.
  3. Only 8 cities i.e. Hyderabad, Delhi, Ahmedabad, Bengaluru, Greater Mumbai, Pune, Chennai, and Kolkata are in X grade category. (Population above 50 lakhs)
  4. Other capital cities like Jaipur, Lucknow, Bhopal, Patna, Raipur etc come in Y category. (Population between 5 lakhs and 50 lakhs)
  5. Rest of the cities are in the Z category. Check the entire list here. If your city is not listed here, it is a Z grade city. https://www.financialexpress.com/money/7th-pay-commission-hra-allowances-check-your-city-category-here-and-the-amount-of-hra-you-will-get-in-august-salary/760809/

Contrast this with Salary of CBI.

Other Perks:

Departmental CUG SIM card:Every Employee of the Income Tax Department (including TAs) is entitled to a departmental CUG SIM card from BSNL. It currently has unlimited incoming and outgoing between all BSNL and MTNL phones. 400 mins are free towards calls to other networks including 1 GB 3G data per month. It is likely to be upgraded to a 3 GB data per day plan with unlimited calls from the next financial year i.e. 01.04.2019.

Petrol Expenses: Inspectors are entitled to 30 liters of petrol reimbursements per month. This translates to about Rs. 2200/- per month. This can be claimed by all the Inspectors, even by the ones who are in a non-assessment posting.

Traveling allowance and Food allowance:If an employee has to go anywhere for the official work, he is entitled to claim the expenses from the department. Inspectors and above are entitled to 2AC tier journey in Railway. The hotel expenses can be claimed at Rs. 750/- per day and food expenses can be claimed at Rs. 800/- (Eight hundred) per day.  

Tax Assistants are entitled to AC3 tier journey. They can claim for a hotel charge of Rs. 450/- per day and Rs. 500/- per day as food charges.

No bills or vouchers are needed to be enclosed while claiming the bill.

Leave Travel Concession (LTC allowance): – Every government servant can claim the expenses of traveling to and fro his hometown from the place of posting every 2 years. If he doesn’t wish to claim the same, he can claim the travel expenses to anywhere in India with his family and he will be reimbursed for the same once every 4 years. For traveling to the North East or J&K, one is entitled to air travel.

This was largely a quick look at the perks of the job of an Income Tax Inspector.


Liked it? Read more on this subject:

  1. Transfer Policy of Income Tax Department: the best in SSC?
  2. Inter Charge Transfer (ICT) in the Income Tax Department: the Pros and the Cons?
  3. Should you go for Inspector of Income Tax or for Sub-inspector of CBI?

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