Income Tax career : Paths, Opportunities & Earnings

Professionals who work in the income tax division are called income tax officers. They deal with the IT matters of the central board of direct taxes (CBDT). An ITO is primarily in charge of the investigation and assessment of income tax, and the income tax department is a division of the ministry of finance.

WHY CHOOSE INCOME TAX?

Unavoidably, taxes are a part of our daily lives. Everyone wishes they could hire someone to handle all the paperwork for them as they hurry to get everything done before the deadline for filing tax returns.

The tax professionals enter the picture at this point. Following are a few of the prominent reasons that establish Income Tax as a compelling career option:

Demand

According to a report on Economic Times, the introduction of the GST in 2017 led to a demand for 1.3 million professionals. This is merely one illustration of the steadily rising demand for these specialists.

The business also requires a mix of skills, according to the Ernst & Young study on Tax Insights, including individuals with in-depth knowledge of local taxes and those who can work cooperatively and strategically to manage projects across borders. 

Excellent Compensation

A profession in taxation will enable you to earn a competitive wage. The pay may not seem much when you first start out as a trainee. But with a few years of expertise, you may definitely earn a substantial salary!

Depending on the job profile you select in this field and your employer, your wages may vary. An entry-level auditor may make more than INR 4,60,000 annually, according to Payscale.

Global Exposure

When people imagine tax professionals, they frequently picture someone shackled to a desk, pouring over financial documents while performing complicated calculations. Rarely does anyone picture this as a fast-paced profession with interesting prospects to work abroad.

You can work in some of the most intriguing locations in the world by choosing to work in this industry.

Career Progression

Abundant  career profiles are open to you after you acquire a diploma in taxation from a reputable institution. However, if you're interested in learning more about a certain field, there are courses available for that as well.

For instance, if you want to become an expert in GST, you may consider enrolling in the GST Practitioner Training and Certification Course.These programmesprogrammes are accessible throughout India. You only need to look at the programme outcomes, ratings, and reviews.

These decisions will provide you the chance to improve in your profession and develop into a specialist in particular sectors.

Work in Almost Every Industry

Finance experts play a crucial role in practically every business, from retail to entertainment, construction to non-profits. These are the individuals who advise the business on how to enhance its financial operations. 

You can apply the abilities you learn while becoming a tax expert to practically any field of your choice. This allows you to explore as much as you like without having to worry about getting stranded in just one or two fields.

TOP CAREERS IN INCOME TAX

Ensuring accuracy in financial papers and creating plans for clients to maximise their tax returns are frequent duties in the tax profession. Understanding your job opportunity is important if you're interested in a career in taxation. Finding a position that fits with your professional and financial objectives might be made easier by learning about some potential jobs in taxation. In this article, we present a comprehensive list of 8 tax-related careers, together with information on the national average pay and the main duties of each position.

Payroll Specialist

Primary duties: Payroll specialists oversee the whole payment process for a business, from time monitoring to issuing pay checks. These experts have a wide range of duties, including making sure that local, state, and federal tax laws are followed, including the payment of payroll taxes. To calculate wages, commissions, and deductions, they frequently gather, record, and verify employee attendance and hours worked. Resolving issues with improper payments and maintaining databases of staff data and accurate payroll records are examples of additional responsibilities.

Tax Preparer

Primary Duties: A tax preparer is in charge of handling the federal, state, and local income tax returns for an individual or business. Finding legal exceptions to lower tax obligations, disclosing tax liabilities, and informing clients of changes to tax laws are some of their additional responsibilities. These experts frequently gather relevant financial documents, such as pay stubs and income statements, and enter this information into a database or tax return software. They might fill out and submit tax forms to state and local governments as well as organisations like the IRS.

Auditor

Primary duties: Auditors provide assistance to individuals, businesses, and governmental agencies in analysing financial processes and records to determine compliance with tax laws. These experts investigate auditing procedures, create tax audit reports, and gather outstanding taxes using tax laws. Other duties frequently involve assessing tax returns, suggesting tax management strategies, and learning about tax regulations and auditing procedures. The amount of taxable income, appropriate tax deductions, and nontaxable costs may all be calculated by them.

Tax Specialist

Primary duties: Tax Specialists oversee quarterly, yearly, and international tax compliance. These people normally create, handle, and preserve all paperwork associated with the accounting cycle. Researching tax laws, educating clients about best practices, and assisting with state and federal audits are among additional responsibilities. They could verify the accuracy of documents and deposits for the purpose of filing and preparing taxes. Records of written and verbal correspondence between a company, the IRS, and any relevant outside regulatory bodies and vendors may be kept by a tax specialist.

Tax Associate

Primary duties: To make sure financial records are in accordance with IRS rules and tax laws, tax associates examine them. They could be responsible for organising tax files, authenticating tax paperwork, and filing taxes using software. They frequently collaborate with groups of other financial experts, such as accountants, to discover and reduce tax liabilities by putting tax reduction plans into place. These experts may conduct tax-related research, support tax audits, and meet with customers to check their tax records and handle any queries or concerns. A tax associate gives employers guidance on employee salary, benefits, and accounting procedures.

Tax Analyst

Primary Duties: For both individual clients and businesses, a tax analyst prepares, examines, and submits tax returns and forms. These experts are responsible for a wide range of tasks, including creating tax credit forecasts, monitoring tax general ledger accounts, and completing necessary documentation. They frequently review work documents, accounting, and tax data to ensure accuracy and adherence to applicable laws. Maintaining transaction records for company difficulties and responding to tax irregularities for property acquisitions and portfolio investments are examples of additional responsibilities.

Tax Accountant

Primary duties: A tax accountant is in charge of assisting both people and businesses in filing their taxes in accordance with the relevant legal requirements. These specialists are responsible for a wide range of tasks, including maintenance of a company's tax database, management of tax problems resulting from improper files, and discovery of legitimate tax savings. Schedules for tax provisions, returns, payments, and reports are frequently prepared by them. Tax accountants guarantee that their clients abide by all applicable federal, state, and local tax regulations. .Tax accountants make sure their customers follow federal, state and local tax laws.

Financial Planner

Primary duties: Financial planners assist clients in developing plans for managing their present and future money. They frequently have to work with customers on particular tax difficulties, prepare tax reports, maximise tax returns, and minimise the impact of taxes on balance sheets. To develop a plan for saving and investing, these experts may examine a person's financial situation and objectives. A financial planner can design personal budgets, manage spending, and come up with wealth-building plans.

INCOME TAX SCOPE IN INDIA 

Income tax field is constantly on the search for creative, competent, and faster professionals. It is a sector that is constantly growing, and every day, several new services are launched. In India today, working in the financial sector is just as demanding as working as a doctor or engineer. Therefore, enrolling in a taxation school in India will help you acquire a well-paying career.

Depending on your educational background and professional experience, you can find employment. You can work in a variety of industries, including public and private organisations, the business banking industry, colleges, universities, and economic firms, etc.

Below are some job titles in these fields:

• Accountant
• Tax policy Analyst
• Financial Analyst
• Internal Analyst
• External analyst
• Employment Tax Specialist
• Personal Financial Consultant

AVERAGE SALARY BASED ON JOB POSITION

Average annual salary in Income Tax Department India is INR 3.1 lakhs. Once they gain enough experience they might be even able to earn up to INR 50 lakhs.

The average salary based on different job titles are shown below in the following table:

Job Tittle	Salary (in INR)
Financial analyst	10 lakh
Accountant	10.3 lakhs
Senior fund administrator	13.6 lakhs
Finance Controller	22 lakh
Manager finance controller	22 lakh
Finance manager(finance head)	15.9 lakh
Manager	12 lakh
Assistant Manager	18 lakh
Sole Proprietor	30 lakh
Senior management finance	23 lakh

Average salary in major firms and organisations that recruit income tax graduates:

Company Name	Average Salary (in INR)
Medline Industries	10 lakh
Invesco Ltd.	13.6 lakhs
Quess Corp	22 lakh
A.K. Lunawath and Associates	12 lakh
Mukesh Kumar Choudhary	30 lakh
Gleneagles Global Hospital	15.9 lakhs
NTPC	18 lakhs
My home Group	23 lakh

TOP RECRUITERS FOR INCOME TAX GRADUATES

Income tax is a constantly developing field. The pupils now have a wide range of opportunities because of the constantly changing financial environment. The market was dominated by government organisations before the emergence of numerous private companies, but now opportunities are growing quickly. Below is a list of companies that work with Tax graduates in various capacities.

• EY
• PwC
• Deloitte
• KPMG
• Amazon
• Accenture
• H&R Block
• EYGBS
• Ernst & Young
• CohnReznick
• Infosys
• P Morgan
• Grant Thornton
• ADP
• Ford Motor Company
• Thomson Reuters
• Wipro
• Invesco
• Speridian Technology

TOP INCOME TAX COLLEGES FOR PLACEMENTS

In recent years, taxation courses- have become extremely popular. Income tax careers offer rich employment options with high compensation. In India, there are plenty of colleges which offer income tax courses. There are both privately owned colleges as well as government owned colleges to pursue this course. However,  the number of private colleges for the course is much higher as compared to Government owned colleges.

The following are the top colleges in India ranked based on their yearly placement statistics.

• Joseph’s College of Commerce, Bangalore
• Kristu Jayanti College, Bangalore
• Sacred Heart College, Kochi
• GITAM School of business, Visakhapatnam
• Presidency College, Bangalore
• Jain Deemed-to-be University, Bangalore
• S Jain Subodh PG College, Jaipur
• Bishop Heber College, Tiruchirapalli
• Chandigarh University, Chandigarh
• The Oxford College of Business Management, Bangalore
• Women’s Christian College Chennai
• Parul University, Vadodara
• NMKRV College for Women, Bangalore

HOW TO GET A JOB AFTER INCOME TAX COURSE

Once the candidate graduates and has an Income Tax Degree, these are the steps that he/she needs to follow if they want a career in the tax field:

• Meet the eligibility criteria

A bachelor's degree is the bare minimum requirement for CGL. To sit for the CGL exam, obtain a bachelor's degree in any disciplineAfter this, , ensure that you meet all other qualifying conditions. The age range is from 18 to 30. There is also age relaxation for few reserved categories:

• • SC/ST: 5 Years
  • OBC Category: 3 Years
  • Person with disability: 10 years
  • PWD(OBC) Category: 13 Years
  • PWD(SC/ST) Category: 15 Years
  • Candidates who were an ordinarily resident in the state of Jammu and Kashmir between January 1, 1980, and December 31, 1989.
  • Defence personnel impaired in operation during hostilities with any foreign country or in a disturbed area and discharged because of that (SC/ST): 8 years

 

• Apply for the SSC-CGL exam

You can apply online for the CGL exam after ensuring that you meet all the eligibility requirements. There is an INR 100 application fee. For those who fall under the SC, ST, PWD, and ex-serviceman categories, there is no application cost. There are two steps involved in completing the application form. Part I involves one-time registration, and Part II involves completing the exam application. The exam is given by SSC in three levels. To become an income tax inspector, the candidate must pass each of the three levels.

• Write the tier 1 exam

The prelims test is another name for the tier I exam. The test is computer-based and solely includes multiple-choice, objective-type questions. Since it is a qualifying exam, the results do not contribute to the final ranking. General intelligence and reasoning, general awareness, quantitative aptitude, and English comprehension are the four areas that make up the Tier I exam. If you do well on this test, you can take the tier II exam.

• Write the tier 2 exam

The mains exam is another name for the tier II exam. It is a computer-based test with multiple-choice questions of the same objective nature as tier I. Tier II consists of four papers, with papers I and II being required for all positions. For applicants who apply for other posts, Papers III and IV are required. Paper I is worth 200 points for quantitative skills, and Paper II is worth 200 points for English language and comprehension. For the final ranking, tier II exam scores are significant.

• Write the tier 3 exam

A descriptive paper in Hindi or English is required for Tier III. It's a test in pen-and-paper mode. There are 100 marks on this paper, and those points go toward your final grade. The time allotted for this paper is one hour, and there are no deducted points.

• Complete document verification and Medical examination

Based on tier II and tier III performance, the commission shortlists individuals to appear in the document verification. Shortlisted candidates go through a medical fitness assessment after document verification. Anyone who can pass a medical exam and meets the physical standards can work as an inspector in the income tax division

• Qualify for the Departmental exam for income tax officers

You can advance to the position of income tax officer after three years of service as an inspector. You can pass both the income tax officer departmental test for promotion to ITO and the departmental exam for confirmation. The ITO departmental exam consists of 100 multiple-choice questions. There are 200 marks in the exam, and there is a two-hour time limit. Depending on the number of openings and seniority, you may be promoted to income tax officer after passing this exam.

TOP INDIAN CITIES TO GET A LUCRATIVE JOB AFTER INCOME TAX

The location of the job plays a very important role in the job. The value of a certain occupation depends upon the demand for the same profession that exists in the city itself. The average salary also depends of the area of work, the following are the top cities in India for income tax graduates:

Location	Average Annual Salary (in INR)
Mumbai	5-12 Lakhs
Gurgaon	7-8 Lakhs
Delhi	6-7 Lakhs
Bangalore	7-8 Lakhs
Hyderabad	5-7 Lakhs
Chennai	4-7 Lakhs
Kolkata	5-10 Lakhs
Coimbatore	5-6 Lakhs
Pune	6-7 Lakhs
Ahmedabad	7-12 Lakhs

LIFE AFTER INCOME TAX

Career opportunities for tax employees are no less. There are plenty of job opportunities in India and also abroad. Once they have graduated with income tax as a degree and landed themselves a job, life is almost set. The average starting salary of an income tax officer is higher than most of the average starting salary in the finance field. Taxation is fun when the person doing it enjoys it and he also gets paid well. If they are good at what they do and manage their way to the top, they can make almost INR 30-40 Lakhs annually.

Along with the name of colleges, there should be an additional column with the Highest CTC offered during the placements in these colleges. Name of 10 colleges is sufficient.

FAQs Regarding Income Tax Careers

Following are the most popular Income Tax Colleges in India. Learn more about these Income Tax colleges (Courses, Reviews, Answers & more) by downloading the Brochure.

Following are the most popular Income Tax UG Courses . You can explore the top Colleges offering these UG Courses by clicking the links below.

Following are the most popular Income Tax PG Courses . You can explore the top Colleges offering these PG Courses by clicking the links below.

Following are the top exams for Income Tax. Students interested in pursuing a career on Income Tax, generally take these important exams.You can also download the exam guide to get more insights.