Human Resource Management

1
Human Resource Management

• Strengthening of Training and upgradation of
  skills of existing manpower
• Capacity Building in Transfer Pricing and
  International taxation

2
Our Fiscal Scenario

• Indian economy growing at gt 9
• By 2025 Indian economy projected to be 60 the
  size of US economy
• Tax- GDP ratio increased from 8.2 in 01-02 to
  11.4 in 06-07
• Growth in direct tax revenue 39 in 06-07 as
  against 1.31 in 01-02 and 20.07 in 02-03
• Share of direct taxes in total revenue grew from
  37 in 01-02 to 47.6 in 06-07
• India China to emerge as economic superpowers

3
Challenges thrown by globalised Economy

• Globalized economy generates tax competition
  among the countries
• Hence the need to reduce cost of compliance,
  improve tax payer service delivery, and make
  evasion difficult
• Need to develop technical expertise upgrade
  skills of our manpower
• Special need for capacity building in
  international taxation and transfer pricing

4
Transformations in the IT dept

• Complete shift to networked computerized work
  environment
• Re-engineering of our business processes
• Focus on core areas of competence with
  outsourcing of other works
• Specialized skills needed for handling
• E-filing of returns,
• On-line processing
• Data mining and Data security
• E- governance initiatives
• Enhanced focus on tax payer services

5
Need for Capacity Building

• These challenges and transformations have
  generated the need for capacity building in the
  form of
• Intensive training for officers and staff
• Exposure to best international practices
• Developing specialization in specific areas
• Participation in international seminars and
  conferences

6
Need for Capacity Building contd.

• Creation of vibrant and user friendly internal
  database
• Access to all important database, and relevant
  resource material
• Continued research in crucial areas for policy
  development
• Providing infra structure support like Laptops,
  access to internet, etc
• For TP Directorate, we need to create foreign and
  domestic database for comparable analysis

7
Need for Capacity Building contd.

• SWOT analysis done by NADT has revealed
• Our manpower productivity is high, cost is low,
  and corruption level is comparatively lower (ORG
  MARG Survey Transparency International)
• Deficient managerial capabilities, lack of
  exposure to international best practices and lack
  of training in areas of super specialization
• Dept. has to play major role in responding to
  global fiscal policy changes for augmenting
  direct tax collections and in taking
  e-governance initiatives
• Need for proper HRD policy and to upgrade
  standards of training so that these match the
  best in the world

8
Need for Capacity Building contd

• A broad exercise of TNA has indicated the need
  for
• Making Training an integral part of Human
  Resource Management and Development Policy.
• Strengthening of training by augmenting human
  resource and infrastructure facilities
• Having Advanced mid career training programmes
  for the capacity building of officers at
  different levels i.e JCs/Commissioners/CCs-
• By having training tie-ups with institutions of
  excellence like IIMs ,MDI
• For specialized inputs foreign institutions of
  repute to be taken as partners

9
Strengthening of training - Need for
Manpower augmentation

• The present strength of 7 AD/DD and 7 Addl/JD
  level officers has not changed since 1974, but
  the work load has increased at least ten times
• There is no permanent faculty to impart inputs on
  Accountancy, Information technology, Management,
  etc.
• Large number of sanctioned posts also lying
  vacant in NADT and RTIs
• Hence, there is an urgent need to fill up
  existing vacancies and to create additional posts
  
• Regular Professors for Accountancy,
  Management, Information Technology and Law to be
  appointed as recommended by DOPT

10
Strengthening of training - Need for
Manpower augmentation

• Acute shortage of supporting staff
• Only 15 encadred posts of group C employees which
  mainly include Hindi translators and drivers
• Not a single encadred post in the rank of
  inspectors, stenographers, and TAs
• There are only 9 stenographers sent on deputation
  by local CC
• Hence, there is an urgent need to post 10
  inspectors, 9 stenographers, and 15 TAs (15
  Gr.D posts can be upgraded to Gr.C)

11
Strengthening of training Improving
infrastructure relating to computerization

• ISSUES to be addressed
• NADT and RTIs are not networked to the three tier
  Architecture (BCP and NDC site)
• NADT not networked to its RTIs
• Lack of advanced computer equipments and modern
  training aids to impart training in networked
  environment
• No manpower for maintaining hardware and software
• Absence of regular trainer to impart training in
  basic computer skills, ITD application software
  and information technology
• Handicapped in imparting training in the new
  technological skills and in associating with CMT
  initiatives

12
Strengthening of training Improving
infrastructure relating to computerization

• Solutions Offered
• NADT and RTIs to be immediately networked to the
  three tier BCP and NDC site
• One more computer lab to be set up for imparting
  training to in-service officers
• Existing computers to be updgraded
• Additional computers and modern training aids to
  be provided
• Hardware and software personnel to look after the
  computerization needs to be posted
• Regular trainers to be posted for imparting
  training in basic computer skills, ITD
  application software and information technology

13
Strengthening of training Granting
Administrative and financial powers

• Need for vesting authority in NADT for
  getting printed the training materials,
  brochures, booklets and training calendars
  without going through the Directorate of
  Printing
• Under item No.14 of Annexure to Schedule V of
  Delegation of Financial Power Rules, any printing
  is to be done through Directorate of Printing
  and/or in accordance with the rules prescribed by
  them for expenditure exceeding Rs.20,000/- Since
  the type of printing jobs required by NADT are
  not being done by government presses under DOP,
  this condition should not be made applicable to
  NADT

14
Strengthening of training Granting
Administrative and financial powers

• Payment of honorarium to guest faculty
• The present rate of honorarium is merely Rs.400/
  per session of 75 minutes and fails to attract
  the services of eminent resource persons. The
  rates may be revised to Rs.1,400/ per session of
  75 minutes for eminent speakers and Rs.700/- for
  govt. officials which are being paid by LBSNAA,
  Mussorie
• This request has been pending with CBDT for more
  than 2 years In fact rates need to be revised
  to Rs.2000/- and Rs.1000/- respectively for above
  categories.

15
Capacity Building through training Advanced
Mid-career trg. programmes

• With augmentation of manpower infrastructural
  facilities NADT will be able to upgrade the
  standards of training and will continue to run
  training programmes including
• Induction Training for two batches of OTs
• Regular Orientation and training programmes
• Specialized courses on various subjects
• Need based courses including TDS training to
  Govt. employees
• Mid-career training programmes will be imparted
  in coordination with the best in the world

16
Proposed Scheme for Advanced Mid career training
programme

• Discussions initiated with IIMs, and MDI
• Discussions at advanced stage with MDI for
  training programme for JCs and with IIM Bangalore
  for training programme for Commissioners
• IIM Ahmedabad and IIM Kolkata have been requested
  to design programme for Chief Commissioners
• Tie-up with select foreign institutional partners
  through the Indian institutes

17
Proposed Scheme for Advanced Mid career training
programme

• MDI Gurgaon and IIM Bangalore have
  broadly suggested following set of skills for JCs
  and commissioners
• 1. Soft skills aimed at improving
  administrative and managerial skills for
  effectively handling the issues arising out of
  transition process
• 2.Technical skills aimed to impart technical
  knowledge required to handle the complex issues
  and challenges thrown by globalized economy and
  the networked environment so that IRS officers
  are able to substantially augment the revenue
  collections

18
Proposed Scheme for Advanced Mid career training
programme

• 3.Developing global mindset aimed to influence
  attitude and change the mindset for meeting the
  global challenges of reducing cost of compliance
  and improving taxpayer services so that MNCs/Big
  taxpayers are attracted to pay their taxes in
  India in this era of global tax competition
• 4.Specialized skills aimed to develop expertise
  in highly specialized areas, which should be of
  global standards, and to develop knowledge and
  skills by looking at the international best
  practices

19
Proposed Scheme for Advanced Mid career training
programme

• Detailed TNA and Aptitude test to be done for
  each participant by the Institutional partner
  before the programme.
• Soft skills, technical skills and developing
  global mindset would be broadly imparted to all
  the participants
• Specialized skills to be imparted taking into
  account the level of officers trained, their
  functional roles and the organizational
  requirements
• The knowledge, experience and aptitude of the
  participant to be considered for selecting the
  area of specialization
• Focus on specializations in International
  taxation and Transfer Pricing

20
Proposed Scheme for Advanced Mid career training
programme

• For the CCs, the programme will be specially
  designed and content would be tailor-made
• to enhance their leadership and managerial
  capabilities
• to drive organizational change and visualize the
  future roadmap for the department in the global
  scenario
• For the Commissioners, the emphasis will be more
  on policy related subjects, managerial techniques
  and specialized subjects
• For the JCs, the emphasis will be more on
  technical inputs and specialized subject areas

21
Proposed Advanced Mid career training - Training
Contents

• Soft skills
• Managing subordinates, self and superiors
• Building high performance work culture
• Managing change and building teams
• Honing effective communication skills
• Orientation towards technology
• Business and Meeting etiquettes
• Managing information system
• Human Resource Management
• Crisis management

22
Proposed Advanced Mid career training - Training
Contents

• Technical skills
• Capital Markets in India and in the global
  scenario
• E-commerce
• International Accounting standards and tax
  implications
• Macro economic trends and Contemporary issues in
  fiscal policy
• Information technology
• Corporate restructuring and taxation (Merger,
  Acquisition, de-merger, etc)

23
Proposed Advanced Mid career training - Training
Contents

• Technical skills( contd.)
• Techniques of conducting surveys to determine
  needs, requirements, complaints and comfort level
  of taxpayers
• Learning statistical tools for data analysis
• Mastering spreadsheets, and working comfortably
  with large databases
• Understanding and using data mining tools
• Basic principles of International taxation and
  transfer pricing
• Cyber crimes and money laundering

24
Proposed Advanced Mid career training - Training
Contents

• Developing global mindset
• Study of taxation systems of different countries
• Study of fiscal management and admn. with
  international perspectives
• Study of international best practices in tax
  administration in different countries 
• Participation in international conferences and
  seminars on taxation

25
Proposed Advanced Mid career training - Training
Contents

• Specialized skills for Intl taxation and
  Transfer Pricing
• The participants to be broadly categorized
  into
• Policy Makers
• Personnel manning international taxation
  directorate
• Personnel manning transfer pricing directorate
• (1)Inputs for Policy makers
• Negotiation of tax treaties
• Drafting double taxation avoidance agreements
• Dispute resolution mechanism
• Information management

26
Proposed Advanced Mid career training - Training
Contents

• Inputs for Policy makers (contd.)
• Risk analysis and management
• Exchange of information
• Tax credit
• Study of taxation system of important countries
• Comparative study of tax policies
• Revenue forecasting

27
Proposed Advanced Mid career training - Training
Contents

• (ii) Inputs for International Taxation
• Taxation of cross-border transaction
• Taxation of services particularly financial
  services
• Taxation of financial products
• Offshore havens and tax shelter
• Interpretation of tax treaties
• International tax avoidance and evasion
• Taxation of e-commerce

28
Proposed Advanced Mid career training - Training
Contents

• Inputs for International Taxation (contd.)
• Tax arbitration
• Mergers and acquisitions
• Thin capitalization
• Permanent establishment
• Handling accounting software, computer skills and
  data management
• Computer skills and
• Data mining and data management

29
Proposed Advanced Mid career training - Training
Contents

• (iii) Inputs for Transfer Pricing
• Transfer Pricing Principles and methods
• Thin Capitalization
• Taxation of Intangibles
• Advance Pricing Arrangements
• Risk assessment
• Analysis of financial statements
• Skills for comparative economic analysis
• Data mining and data analysis
• Accounting software
• Best International practices, etc

30
Proposed Advanced Mid career training - Training
Contents

• Specialized skills- In areas other than Intl
  taxation and TP
• (iv) Information Technology covering topics like
  Data mining Data management, Information
  security management, Networking and Network
  management, Computerized accounting system, etc
• (v) Taxpayer Services covering topics like
  e-governance, Automation of systems for improving
  taxpayer services, Data security, Large Taxpayer
  Units and reducing compliance cost, etc

31
Proposed Advanced Mid career training - Training
Contents

• Specialized skills-In other areas (contd.)
• (vi) Corporate taxation covering topics like
  International Accounting standards, Corporate
  restructuring, Taxation of I.T.enabled services,
  Taxation of financial markets and financial
  products, Capital markets, Money markets,
  Commodity markets, Assessment of MNCs, etc
• (vii) Investigation of cases and making evasion
  difficult covering topics like Gathering
  information and intelligence, e-Investigation,
  Data mining, Data retrieval and Seizure of
  digital evidence, Information Technology Act,
  Money laundering and cyber crimes, etc

32
Proposed Advanced Mid career training - Training
Contents

• Specialized skills-In other areas (contd.)
• (viii) Human Resource Management covering topics
  like Formulating integrated HRM policies
  including training and placement, Human capital
  formation, Performance evaluation methods, etc
• (ix) Specialization in Administration covering
  topics like Infrastructure development, Manpower
  management, Setting up and running return
  processing centres, Lowering compliance cost and
  improving tax payer services, etc
• (x) Specialization in Imparting Training
  covering topics like Training methodology,
  Management of training through planning,
  designing, execution and evaluation, Knowledge
  Management, Developing On line training
  programmes for continuous learning, etc

33
Proposed Advanced Mid career training -
Foreign Institutes recommended for tie-ups
34
Proposed Advanced Mid career training - Foreign
Institutes recommended for tie-ups
35
Proposed Advanced Mid career training - Foreign
Institutes recommended for tie-ups
36
Proposed Advanced Mid career training - Training
population duration
Officers likely to be promoted within three to
four years are also included. Two years
relaxation to cover the larger population
initially
37
Proposed Advanced Mid career training -
Tentative cost estimates

• To be utilized in five years Appr. 4 programmes
  each in a year, for JCs and for CITs and 1-2 for
  CCs

38
Proposed Advanced Mid career training -
Tentative cost estimates

• An expenditure of Rs.58.65 crores over a period
  of five years is a good investment which would
  give many fold returns in the form of revenue
  augmentation
• Where efficiency means more money, outlay on
  personnel should rightly be considered an
  investment and not expenditure Wanchoo
  Committee

39
Proposed Study tour to Singapore for OTs of 60 th
Batch of IRS

• A seven day Study tour to Singapore is
  proposed for the OTs of the 60 th Batch of IRS
  (also recommended by the PM)
• To enable the young officers to look at
  international best practices and appreciate
  various implications of the globalization
• To give them a first-hand knowledge of the impact
  of the information technology and its utilization
  to improve tax administration and taxpayer
  service delivery mechanism
• To enable them to visualize building an efficient
  and modern tax system for our country
• To enable them to develop the mind-set to reach
  global standards in their functioning
• Study tour to other modern tax
  administrations like Canada, Australia, etc can
  be planned in the coming yrs

40
Proposed Study tour to Singapore for OTs of 60 th
Batch of IRS

• The study tour to Singapore envisages
• Study of their modern tax system
• Visit to their Tax policy office, Singapore
• Visit to IMF Regional Training Institute for
  interactive session on Money Laundering and
  fiscal policy developments
• Visit to the Lee Kuan Yew School of Public
  policy, to understand the comparative tax
  policies particularly of Asian countries

• Visit to Singapore can be in place of visit to
  Andamans or Lakshadeep and the difference in
  airfare is only Rs.9,063 per head and there are
  only 50 OTs

41
Proposed Advanced Mid career training -
Immediate requirements

• A sum of Rs. 40 lakh needs to be sanctioned and
  allotted to NADT, so that IIMs and MDI can start
  with training needs and aptitude analysis
  immediately
• A sum of Rs.58.25 crores is recommended to be
  placed in a separate fund called Capacity
  building fund of the Income tax Department, for
  the purpose of proposed training tie-ups and for
  being spent over a period of 5 years
• Administrative approval deserves to be granted
  for including visit to Singapore as part of
  study tour of OTs of the 60 th batch and make
  budget allocation of Rs.31,72,000/- for incurring
  of foreign travel expenses

42
CAPACITY BUILDING THROUGH TRAINING

• By building the capacity of our officers in the
  proposed manner, Income Tax department can be
  transformed into a world class organisation and
  officers of the department can be enabled to
  protect and promote the revenue interests of
  India in this era of global tax competition by
• improving tax payers services
• reducing cost of compliance
• making evasion difficult
• putting in place dispute resolution mechanism
• ( Thankyou )