The IRS full form is Indian Revenue Service which is considered as an essential job role for the management and enforcement of the taxation system (collecting and handling the direct and indirect taxes), compliance monitoring and preventing the tax evasion of India. The IRS exam posts is conducted by the UPSC (Union Public Service Commission).
The IRS exam is conducted in three stages, the preliminary exam, the main exam, and the interview. All the IRS exam details for the IRS Exam job post come under the UPSC CSE.
After completing or passing the UPSC CSE examination, selected candidates for the IRS officer post will undergo training at the National Academy of Direct Taxes (NADT) in Nagpur.
The IRS comprises two branches, Indian Revenue Service (income tax or direct taxes) and Indian Revenue Service (customs & indirect taxes), managed and overseen by two separate authorized bodies, the CBDT (Central Board of Direct Taxes) and the Central Board of Indirect Taxes and Customs (CBIC).
Roles and Responsibilities
The roles and responsibilities of the IRS officers vary as per their specific departments.
CBDT
The Central Board of Direct Taxes (CBDT) takes charge of the income tax, wealth tax, and corporate tax. The key responsibilities and work of the CBDT are as mentioned below.
- Tax Assessment and Collection: gathering and assessing corporate, business, and individual income taxes.
- Ensure that taxes are accurately computed and paid on schedule.
- Follow the Central Board of Direct Taxes’ (CBDT) guidelines and policies, and ensure that tax laws and regulations are followed.
- Conducting the research, seizures, and surveys to find the tax evasion.
- Investigate the issues related to the financial irregularities, false tax returns, and unreported income.
- Providing and helping the taxpayer’s support, so they can understand and follow the tax laws.
- Managing the income tax-related issues and complaints. Also tracking and resolving the issues with transfer pricing and cross-border tax evasion.
- Act as the Income Tax Department’s representative in courts and administrative bodies to resolve disputes.
CBIC (Customs & Indirect Taxes)
The primary goal of the CBIC officers is to manage the Customs, Excise Duties, Goods & Services Tax (GST), and more related requirements.
- To enforce customs regulations and stop illegal activities like smuggling, undervaluation, and other trade-related wrongdoings, import and export monitoring is necessary.
- Regulating the excise taxes on products made in India as well as the manufacturing units’ compliance and registration.
- Implementation and monitoring of policies and GST-related issues such as GST fraud and evasion.
- The Customs Department of the Indian Revenue Services works with agencies like the Border Security Force (BSF) to stop or prevent illegal trade and to conduct the raids and seizures at ports, airports, and border checkpoints.
- Investing in the smuggling of goods, drugs, and other illegal trades.
- Works as the adviser to the Central Board of Indirect Taxes and Customs (CBIC) on customs and GST policies.
Importance of IRS Exam in Governance
IRS officers are essential to economic governance because they maintain fiscal accountability and use effective tax administration to advance national development. They serve as an intermediary between the taxpayer and the government, upholding the rule of law and preserving trust.
The IRS officers are majorly responsible for collecting the taxes, the application and enforcement of the tax laws, and the management of the revenue collected.
- Collecting tax and ensuring that the tax laws are implemented perfectly. They are also responsible for taking action against the tax evasion.
- Fair practices of change in income and taxes are investigated.
- Cooperating with the international tax authority or revenue department to manage the cross-border tax evasion.
- Manages the tax audits and investigations so that the returns are filled on time and correctly.
- Managing corruption and collecting the exchange of black money.
- The IRS officers ensure the financial stability and growth of the country.
- Implementing and creating the policies is the key role of the officer in revenue services.
- Developing the welfare schemes for the interest of the public.
- Conducting various programs for educating the people about the new policies and the schemes and the benefit of the tax payments.
- Creating a budget that will help to make the policies and decisions for different departments of the government.
- The IRS’s involvement in indirect taxes and customs is essential to India’s economic integration with the rest of the world.
- Enforcing laws pertaining to the movement of goods and services across India’s borders is the responsibility of the IRS’s Indian Revenue Service (Customs) division. It ensures that the country’s customs laws are followed, including the imposition of customs duties on imported goods and services.
FAQS
What does IRS do in India?
According to the financial department, IRS officers fulfill a variety of duties and responsibilities for the Indian government. Administering direct taxes, developing and enforcing policies for the nation’s and the people’s well-being, acting as a quasi-judicial body, prosecuting cases, negotiating international agreements, etc.
Is IRS equal to IAS?
The IAS officer handles the administrative, and they are responsible for creating the policies and implementing them according to the finances and the requirements of the government. Whereas the IRS officers are responsible for the finance-related policies and requirements of the government.
How can I become an IRS officer in India?
The UPSC CSE Exam (IRS Exam), which is administered by UPSC every year, is used to select IRS officers. Indian Revenue Service exam comprises three stages: prelims, mains, and interview.
