Clarification on grade pay of Rs.5400 to Income Tax Officers

Good News for Income Tax Officers who have completed 4 years of service in the grade of ITO as on 01.01.06, as HRD of Income Tax Department has decided to extend the grade pay of Rs.5400/- to these Officers also from 1.1.2006 irrespective of the fact that they have completed 4 years of service in the pay scale of Rs.7500-12000 only during 2008.

Earlier, Income Tax Officers who have completed 4 years of service as on 01.01.2006 have been fixed with the grade pay of Rs.5400/- only as on 21.04.08, on the notion that these Officers were placed in the pay scale of Rs.7500-12000 only from April 2004.

It’s a judicial interpretation and we hope that Central Board of Excise and Customs would follow suit as this analogy will also be squarely applicable to Officers such as Superintendent of Customs and Central Excise and Appraisers of Customs who were covered by the same portion of Government Notification dated 29.08.08 for implementation Sixth Pay Commission.

Download Income Tax Department’s clarification dated 06.03.09

31 Comments

  1. It Is good TO see that common sense prevailed atlast. The CBDT unlike the CBEC has given a valid and correct intepretation based on logic and equity.One hopes that CBEC follows suit as already the intended beneficiaries have been denied their due for more than six months

  2. Two Boards in same ministry taking diametrically opposite opinions. Amazing….. ? What is the status of Inspectors Grade Pay in new CPC as all the Inspectors except Ministry of Finance have been recommended to the Grade Pay of Rs. 4600 prior to the publication of the 6th CPC by their respective Ministries. Accordingly, they were granted the said Grade Pay of Rs. 4600. When our Ministry is going to do the same. Hope the better sense prevails akin to this clarification on grade pay of Rs. 5400, sooner rather than later in CBEC also. Wishing all a very Happy Holi.

  3. In cbdt the situtation of Inspectors are better placed as no Inspector have to wait for more than 12 year to get promotion to ITO. In central excise inspectors after 22 year of service are waiting for promotion. so as per cbec, they are not going to get 5400 gp whereas IT Inspector with less year of service with get the same. as they have already promoted to ITO. god knows when cbec will learn to help it’s poor staff.

  4. Granting grade pay of Rs.5400/- to group B officers only who have
    completed 4 years on 1.1.2006 is a grave injustice to the others who
    have got only ACP and not promotion to complete 4 years before
    1.1.2006. Grade pay of Rs.5400/- should be given to all Income Tax
    inspectors and Central Excise Inspectors also who got ACP and
    completed 4 years in the higher ACP scale. Not getting promotion in
    time is not the fault of them and giving only to actual promotees is
    giving double benefit of promotion as well as the 8000 scale after 4
    years, whereas their own collegues who got ACP 6 or 7 years before
    1.1.2006.

  5. It is great injustice to us. I joined Central Excise Department as Inspector in 1991. After 18 years of service I am still Inspector. My Colleague who joined with me in 1991 and belong to reseved category got promotion in year 2001. Now as per Govt decision he deserves for Grade pay 5400 w.e.f. 01.01.2006. But I deserve only for Grade pay 4800 in the year 2009. Even if I get promotion in year 2010 it will take more 4 years to be in Grade pay 5400 i.e. in year 2014. That is, my colleague get grade pay 5400 in 2006 and me in 2014. what a great policy formulated by our lords! Mutiny of BDR at Dhaka certainly has some reasons.

  6. Dear Tapan ji

    Is there a way we can change our board to CBDT. Our men at CBEC are hopeless ones.

    Had there been ACP Inspectors in Income Tax Department we all would have got 5400/- by this time.

  7. Even after 50 years of independence, the vestiges of British rule cannot be erased from the civilian bureaucracy. It is with great anguish we pour our feelings out, and hope that the highest level of the political leadership considers it sympathetically and avoid any inaction by vested bureacratic interests.
    The non-class 1 i.e the Group B,C are an aggrieved lot.
    The classification of the services under Gazetted-non-Gazetted , Group A, B and C has created a virtual Aparthied like situation wherein we come across cases of Group A officers having a disdainful and supercilious attitude towards their non UPSC, Non Class 1 subordinates bordering on hubris.What is so sacrosanct about this classification that it is leads
    to vested interests protecting their turfs and how can you have social justice in society when the civil service itself has such an inegalitarian hierarchal structure that it it in danger of falling apart if any other formation based on social justice platform like Mayawati comes to power at the centre. Before we go public on this issue, I suggest that the Govt.
    act on it and take some remedial measure before any social upheavel shakes up the very citadels of our bureaucracy.
    This has assumed such an Institutionalized setup that it almost mirrors the varna system in Hinduism.
    Everything is based strictly on hierarchy and not on value.The hiatus is too wide to bridge, given the sacrosanct nature of Group A.
    How sacrosanct the Class 1 scales in the sixth Pay Commission are, can be gauged by the substantial jump in some allowances and perks in the Grade Pay of Rs 5400/ and PB-3 and the virtual red letter highlights in PB-3
    as ‘Group A induction’.

    Lack of any lateral upward moves on the part of the lesser
    mortals to move up the Varna system, which euphemistically is
    referred to as Induction in group A, and which is tantamount to a lower varna person being baptised into a higher one, has created a deep resentment in many talented employees who by virtue of bad luck could not make through UPSC and had to opt for SSC instead.This system,like the caste system, is designed in such a way that it precludes any latent talent in the lower rungs.
    Probably no other Instituition has this kind of divergence
    wherein a certain class of people are condemneded to stagnation for the rest of their lives ,however talented they may be.
    As a first step towards alleviating this historical wrongs,
    the Govt can make towards abolishing this classification into A,B,C,D and gazetted. It is never too late in History to correct a wrong.
    Some of the privileges enjoyed by the higher echelons like
    unquestioned study leave, can also be extended to all sections
    as everyone can justify value addition after taking a
    sabbatical off for education. I dont see any reasons why
    a non -gazetted employee who has put in 20 years service
    should be denied permission for a 2 year study leave, on loss of pay. Why cant you frame rules on this.
    Secondly as the recommendations of the Chairman of the Commission do carry some weight, I suggest that keeping the egalitarian nature of our Constitution in mind kindly keep the ratio of the Highest vs the lowest pay at the ratio of the fourth pay Commission.
    Thirdly , there should be scope for lateral or upwardly induction of exceptionally talented staff from non group A ,who by virtue of mischance might not have fared well in the UPSC civil services examination and who are condemned to stagnation for the rest of their lives.This will address to
    a great extent the frustration and resentment in them.
    Start the process right away, or else the fight on this logic will be conducted in the next Administration and already some important social justice politicians are being sounded on it. Please do not take it lightly.
    Also I want to highlight another oddity in the various cadres of Govt. services.The Accountants recruited under the Civil Accounts Service by the SSC have a minimum qualification of Graduation and are recruited in the scale of Rs 4000/. After that there is virtually no promotion if one does not clear the Dept. examination, and are at best entitled to an upgradation without any promotion.Many of them stagnate in the same rank till etirement.Even Group “D’ peons in the organization get promoted and end up as senior Accountants . I am sure nowhere in the world you see such an outlandish and bizarre situation.
    Since many of the direct recruits as accountants are graduates, they can be given a promotion as JAO , when ACP is due and fixed at grade pay of Rs 4800/ and additional responsibility during their second ACP ,as many will be capable of handling additional responsibility if guided properly.
    They have instead been upgraded at grade pay of Rs 4600/ instead of the Rs 4800/ as the pay commission had clearly stated the merger of the erstwhile scales Rs 7450/ and Rs 7500/ . It is clear that the CGA has played mischief , and wants to protect its turf in the condcut of the departmental JAO exam and is loath to cede the the exam rights to the UPSC as would be the case if a JAO be designated as gazetted on passing the exam.
    Otherwise, many might end up drawing a grade pay of Rs 4800/ and enjoy a higher pay without any responsibility thus creating a peculiar HR problem in Corporate parlance.
    Also while finalising the final recommendations ,kindly collate the total
    figures under the head salaries, TA and OE. I am sure there is a lot of
    leeway for a drastic reduction in the expenditure of TA and a bit in OE.
    It is a well known fact that almost 90% of the expenditure under the head TA is accounted for infructuous expenditure for the various ‘tours’ of Group A officials. A drastic cut effected under these heads can facilitate a increase in the salaries head, which can benefit many more employess across various classes unlike a few who are are benefited from it.

  8. Since we are a group of retired employees , we have already sounded a few social justice parties like the BSP on this , who promised some significant action on this soon. This is going to be a political issue shortly.

  9. CBDT relates Direct Taxes, whereas the CBEC has to deal with indirect taxes.No wonder the bosses at the CBEC helm think indirectly on staff welfare matters . I fully appreciate the CBDT bosses for taking such a positive stand. I hope some good sense will prevail over the bosses in CBEC at least at this stage.

  10. Why dont you propose to bring down the entire edifice of the colonial bureaucracy instead which would go a long way in building our polity as a true modern democratic one where social justice in the true sense of the term would be achieved?

  11. Once a senior Officers becomes a member of the CBEC they make it convenient to get insulated from the realities faced by the subordinate staff, especially about the acute stagnation prevailing in the Inspectors and Superintendents cadre. Most of these officers have to stagnate upto 16-20 years in each grade. Some fortunate Inspectors in the twilight of their career get a prmomotion to Supdt, and most will have to leave the dept with just one promotion. Even a Reserved Category DR Inspectors have recently retired as Supdt!, fortunately such a situation does not prevail in the case of our brothers in the IT dept. No womder if the ITO who have completed 4 years as on 1 1 2006 get GP of 5400, this speaks volumes of the sincereity of the officials in CBDT in dealing with their subordinate staff and officers.

    1. Dear Friend,

      Is your back skin too tough?
      then why are u whipping it by talking about the organisms sitting at cbec. they are sultans of indirect taxation department which run on hapless taxpayers money. they have organised 4 promotions for the ldc recruits and for ac recruits within a span of 1995 to 2010 and not a single one for earthlings called insp who acually do the job on their behalf in all front so that they can collect the pay in peace.
      Dont clutter your mind whith the thought of those creatures let’s look at outside world and see the miseries of people all around and take consolation at least at the end of the day we have some thing to eat, something to wear and somewhere to sleep. sadhu

  12. Does anyone have any idea if any action has been initiated by the federation of C.Ex Inspector’s assn against CBEC letter dt 11.2.09. Our comrades at the Federation level should highlight the discrimination meted out to the inspectors’cadre.

  13. Though the CBDT has clarified the grade pay of Rs,. 5400/- to the Income Tax Officers but the Zonal Accounts Officer is still not passing the bills on the plea that Chief Controller of Accounts, Delhi has asked for further clarification from the Implementation Cell. Whether it is correct? If so the CCA, may be asked to see the clarification already issued by the Implementation Cell in a RTI case.

    In addition to this ZAO is not agree to give the benefit of scale by giving credit of one increment due to up-gradation of pay scale.

  14. eventhough the cbdt is generous enough for granting grade pay of 5400 for completion of 4 years service as ITO irrespective of date of implementation of 6cpc, some of the ZAOs are still not granting the same with an excuse that such clarificatiion shall be endorsed by their principle CCA which is rediculous. The ZAO in hyderabad is one of such officers who is waiting to give higher grade pay for want of endorsement from his principle CCA. It is injustice meted out to the ITOs in Hyderabad

  15. As per the new classification issued on 9th April’09, all officers drawing the grade pay of Rs. 4200, Rs. 4600, Rs. 4800 in the PB-2 pay scale are Group B officers. So now Incometax inspectors are also Gr.B officers which was not the case earlier. So the grade pay of Rs. 5400 should be given to Incometax inspectors also who were placed in the pre revised pay scale of Rs. 75000-13500 and who have completed 4 years of service. Please let know if there are any such cases and what action has been taken CBDT in such cases.

  16. cbec is shamelessly exploiting poor inspectors n supdts n not giving them their due promotions ,grade pay n salary! well done bdr!

  17. In some commissionerate in certain division have sanctioned the grade pay of s 5400/- to officers who have completed 4years regular services as Supdt. However it is learnt that the ZAO is taking objection.Let us hope that CBEC will issue necessary clarification at the earliest.

  18. It is not so as you people are thinking that all ITOs have been given Grade Pay of Rs.5,400/- as per the Clarification dt. 6.3.2009 from CBDT.(HRD) w.e.f.1.1.2006 having put in 4 years of service in the pre-revised scale of pay. In fact, the Zonal Accounts Officers are not respecting the clarification given by the Central Board of Direct Taxes. They need a clarification from the Implementation Cell. Is the ZAO not supposed to follow the CBDT’s (under whom the ZAO is placed) clarification? What more is required for him? Any one could explain?

  19. The Principal Chief Controller of Accounts, it is understod, is awaiting a clarification from the Implementation Cell for allowing the Grade Pay of Rs.5400/- to all ITOs those who have completed four years of service in the pre-revised scale of Rs.6500/- w.e.f.1.1.2006, in spite of the clear instructions from the CBDT(HRD) on 6.3.2009. The Implementation Cell, it appears, does not come out with a reply to the Chief Controller of Accounts, till to-day. As a result, the ZAOs at field Offices could not allow the GP of Rs.5400/- to those ITOs. It is not known whether the clarification issued by the CBDT(HRD) is not binding on ZAOs. The Ministry of Finance should interfere and persuade the Expenditure Ministry/Implementation Cell to clarify this issue at once. Otherwise, there will be a lot of revisions to be effected in Pension cases. May the concerned authorities look into this matter and issue directions to the Chief Controller of Accounts for allowing the Grade Pay of Rs.5400/- to Senior ITOs.

  20. On comparison of Inspector scale position in V as well as in VI pay Commission if no promotion is received is as under:

    V VI
    6500 on appointment ie. 4200 gp. 6500 on appointmentie. 4200 gp.
    7500 after 12 years 4800 gp after 10 years 7450 or 4600 gp
    8000 after 24 years 5400 gp after 20 years 7500 or 4800 gp
    after 30 years xxxx after 30 years 8000 or 5400 gp

    Noe kindly see the difference, while for getting 5400 gp it took only 24 years in V pay Commission it takes 30 years for getting the same gp of 5400 in VI pay commission. What the VI pay commission has done for Inspector cadre ? are we losers or gainers. why cant we fight on these lines. I think only the solution is to go to court we get justice. why should they tell that we are given three promotions/ up gradations in 30 years. Is it not a BETRAYAL BY GOVT.

    P.Vigneshwar Raju
    Hyderabad Customs

  21. Another issue is that , since the cbec has issued clarification that as on 1.1.2006 those supdts etc. sho have completed 4 years of regular service should be given 5400 gp. In pay commn resolution it is clear that “group B officers in the scale of 7500” now they have relaxed 7500 and say that that from the date of supdt. this is only to misguide the cadre. Once it is said that group B officers, why should they ignore Inspectors.
    Kindly think to take drastic action.

    P.Vigneshwar Raju

  22. As per the new classification issued on 9th April’09, all officers drawing the grade pay of Rs. 4200, Rs. 4600, Rs. 4800 in the PB-2 pay scale are Group B officers. So now Incometax inspectors are also Gr.B officers which was not the case earlier. So the grade pay of Rs. 5400 should be given to all under sme classification. when you are classify the cadre group A,B,C AND D you should be equally given 5400, why it is so exclussively Incometax inspectors and customs officers. all are in class B why disparity among us all are central govt. employees. there should not be discrimination. kindly review once again or implement to all employees who are classified as group B.also who have completed 4 years of service. Please let me know if there are any such cases and what action has been taken in other science and technolgy departments in such cases.

  23. Assistant Audit Officers working in Indian Audit and Accounts Department are placed in the PB 2 with the Grade pay of 4800. They get promotion as Audit Officer after a gap of 17 to 18 years. They scale is not upgraded in between. Though some of the officers get MACP after putting in the ten years of regular service as Section Officer/Assistant Audit Officer, they are not upgraded after four years of regular service as is being applied in the case of the ITOs, officers working in Railway Accounts, Postal Accounts, CBEC, Central Secretariat etc. Will the Department of Expenditure do consider the case of AAOs working in IA&AD? Can judicial interpretation be made in this case also?

  24. Consequent to the clarification given by CBEC, I have been placed in the Grade Pay of Rs. 5400/- with effect from 19.06.2007 and an increment @ 3% is also given simultaneously. The next increment dated was 01.07.2007. However, I have not been given the increment due on 01.07.2007, as a result the benefit of one increment attached to upgradation of Grade Pay, in my case, was only for 12 days. The net effect of the upgradation, in real sense, is that I have not got the benefit of the increment @ 3%. The purpose of the scheme of granting one increment alongwith the upgradation of grade pay from Rs. 4800/- to Rs. 5400/- is defeated if I am not given an additional increment of 3%. I request for clarification, considered opinion and the authority thereof.

    1. Dear Ramesh
      When the clarification states that the non fuctional grant of GP 5400 to Supdts completing 4 years will fetch 3% increment fixation, automatically Clarification 2 for fixation on promotion will play the role here also,hence we feel you may exercise Option to get your NFSG GP from the date of regular increment. But PAOs will require categorical clarification on this issue.

  25. Inspector in IT and Central Excise etc. department and Assistant Audit Officer/ Assistant Accounts officer in Indian Audit and Accounts Department who are getting next promotion after 17 to 20 years are passing the days in one post helplessly. 
    I have  suggestion.
    30% of total post of next stage (i.e. ITO, Supdt in central excise and Audit Officer/ Accounts Officer in indian audit and accounts department) should be reversed for the candidate who will be passed a departmental examination.  Authority should start a new departmental examination for this purpose.
    or
    the candidate who are waiting helplessly may appear in Civil Services Examination.
    For this purpose minimum age bar should be relaxed.

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