The Income Tax Department is currently facing a significant staffing shortage of 26,997 officers and support staff as of January 1, 2026, according to Parliamentary information provided by Minister of State for Finance Pankaj Chaudhary. As reported by PTI, this shortage encompasses vacancies across Group A, B and C categories within the department. The minister emphasized that "occurrence and filling up of vacancies is a continuous process," indicating ongoing efforts to address the staffing gap. As and when vacancies arise, such vacancies are filled regularly in accordance with the terms of the mode of recruitment prescribed in the relevant recruitment rules, namely direct recruitment through UPSC/SSC or through promotion as applicable.
Despite the staffing shortage, the government has emphasized that technology and process reforms are strengthening tax administration. According to the minister's written response to the Lok Sabha, the department has implemented measures to strengthen and modernize tax administration by leveraging information and digital technology for ease of filing, faster processing of returns, data analytics and faceless assessments. The minister highlighted that "measures have been taken to strengthen and modernise the tax administration by leveraging information and digital technology for ease of filing, faster processing of returns, data analytics and faceless assessments." The government's response indicates that the Income Tax Department is increasingly relying on technology for services such as return filing and processing, though specific details on the impact of vacancies on taxpayer services were not provided.
Minister Chaudhary provided updates on the Fugitive Economic Offenders Act, 2018, reporting that 11 individuals have been declared as fugitive economic offenders since 2024. According to PTI, properties worth ₹1,303.16 crore have been confiscated from such offenders since 2024, with Red Notices published against 8 individuals and extradition requests sent for 4 individuals. The government has successfully restored properties valued at approximately ₹73,015.03 crore to legitimate victims, resulting in restitution of ₹15,262.30 crore in FY 2024-25 and ₹32,677.97 crore in FY 2025-26. Notably, ₹9,873.11 crore has been restituted during FY 2026-27 till date, as reported by the minister. Additionally, 12 Mutual Legal Assistance Requests (MLAR) have been sent to international authorities for cooperation in tracking down these economic offenders.
According to the minister's written response to the Lok Sabha, vacancies are filled regularly through established recruitment channels including direct recruitment through UPSC/SSC or promotion as applicable. The department has also introduced the New Income Tax Act, 2025, which has resulted in significant simplification of language, removal of obsolete provisions, and consolidation of provisions. As reported by PTI, the New Income Tax Act, 2025, has resulted in a landmark development to simplify language, remove obsolete provisions and consolidate & restructure provisions. The government's response indicates that the Income Tax Department is increasingly relying on technology for services such as return filing and processing, though specific details on the impact of vacancies on taxpayer services were not provided.
