The High Power Committee (HPC) on Government Performance chaired by the Cabinet Secretary in its meeting held on March, 11,
2011, decided to include the responsibility centers (RCs) under the
Department of Revenue in phase III of the Results Framework Document
(RFD) System. Accordingly, ITD is required to prepare its RFD for the year 2012-2013 by 5 th March, 2012. Various Committees have been set up to facilitate the process of preparation of the document. Letters have been issued to all the Chief Commissioners/Director Generals of
Income Tax, Officers/Staff Associations, soliciting suggestions for preparation of RFD by 20 th December 2011. Copy of the letters along with all the relevant documents have been uploaded here. Suggestions may kindly be sent to this office through e-mail at ditdoms.km@gmail.com
 OM dated 21-11-2011
 Letters addressed to CCIT/DGIT/Officers & Staff Associations soliciting suggestions
 Letters addressed to the Conveners of various committees
 RFD Background note
 Vision 2020 & Strategic Plan 2011-15
 Project Sponsor – wise mapping of strategic objectives, sub-goals, action points and functional committees
 Project Sponsor wise Committees
 RFD Guidelines 2012-13
 RFD of ITD for 2010-11 DIT (O&MS)

NILIMESH BARUAH, IRS
F. No. 22/01/2011/AP/DOMS
Government of India
Ministry of Finance, Department of Revenue
DIRECTORATE OF INCOME TAX
(ORGANISATION & MANAGEMENT SERVICES)
LEVEL-5, EAST BLOCK-2,
R.K. PURAM, NEW DELHI - 110066.
Tel. No. : 011 – 26197238;
Fax No. : 011 – 26185607;
Dated 21st November,2011
To
The Convener
Functional Committee on RFD
Sir,
Subject: Preparation of “Results Framework Document” for the Income-tax
Department for the financial year 2012-13 – Regarding.
Kindly find enclosed a copy of the Office Memorandum on preparation of Results
Framework Document for Income Tax Department dated 21-11-2011 for your reference.
2. I have the pleasure to inform you that CBDT has nominated you as the convener of the Functional Committee on RFD. The list of officers of the committee headed by you is enclosed herewith. The terms of reference of the committee are given in the OM dated 21-11-
2011. The committee is to submit its report through the project sponsor by 31 st December
2011.
3. All the relevant documents have been uploaded to irsofficersonline.gov.in
in a separate folder on “RFD Documents” . It is requested that print out of all the documents may kindly be taken. The list of documents uploaded on irsofficersonline.gov.in is contained in the covering note put on the website, a copy of which is enclosed herewith.
This issues with the approval of Chairman, CBDT.
Yours faithfully,

Copy to:
1.
Chairman, CBDT
2.
All the Members of the functional committee.
(Nilimesh Baruah)
Director of Income Tax (O&MS)
(Nilimesh Baruah)
Director of Income Tax (O&MS)

NILIMESH BARUAH, IRS
F. No. 22/01/2011/AP/DOMS
Government of India
Ministry of Finance, Department of Revenue
DIRECTORATE OF INCOME TAX
(ORGANISATION & MANAGEMENT SERVICES)
LEVEL-5, EAST BLOCK-2,
R.K. PURAM, NEW DELHI - 110066.
Tel. No. : 011 – 26197238;
Fax No. : 011 – 26185607;
Dated 17th November,2011
To
Shri S. P. Swain,
President,
All India IRS Association
New Delhi.
Madam/Sir,
Subject: Preparation of “Results Framework Document” for the Income-tax
Department for the financial year 2012-13 -
The Prime Minister had approved in September, 2009 a new mechanism for
“Performance Monitoring and Evaluation System” (PMES) for all Government
Ministries/Departments in India. Under this system, each Central Government
Department is required to prepare a Results Framework Document ( RFD ) as per a set of Guidelines issued for this purpose. The High Power Committee (HPC) on Government
Performance chaired by the Cabinet Secretary in its meeting held on March, 11, 2011, decided to include the Income Tax Department in the Results Framework Document
(RFD) System. Accordingly, ITD is required to prepare its RFD for the year 2012-2013 by 5 th
March, 2012.
2. A detailed background note has been prepared for the guidance of the departmental officers. All the relevant documents have been uploaded to irsofficersonline.gov.in
in a separate folder on “RFD Documents” . It is requested that print out of all the documents may kindly be taken and the following broad issues relating to RFD be discussed with the officers & staff in your region:


What are the objectives to be put on the RFD within the framework of the
Strategic Plan 2011-15?

What operational goals to be determined from the 3 strategic objectives?

What relative weights to be put for each of these objectives?

How do we align the RFD document with the ‘Annual Action Plan’ within the overall framework of the five year ‘Strategic Plan ‘ ?

Do we draw up separate RFDs for the Chief Commissioners at the cadrecontrolling levels for the goals to be achieved by the field officers to facilitate monitoring at apex level?

How do we select Success Indicators and milestones for measuring success within the framework of suggested guidelines?

What mechanism do we put in place for monitoring and evaluating performance under the RFD process?

Identification of Project Implementation teams
3. I take this opportunity to solicit your valuable suggestions for preparation of the
RFD after wide consultations with all the stakeholders. Suggestions may kindly be sent latest by 20 th
December, 2011 through e-mail at ditdoms.km@gmail.com
.
This issues with the approval of Chairman, CBDT.
Yours faithfully,
Enclosed: Copy of O.M.
(Nilimesh Baruah)
Director of Income Tax (O&MS)

F. No. 22/1/2011/AP/DOMS
Directorate of Income Tax (O&MS)
East Block-II, Level-V
R. K. Puram, New Delhi
OFFICE MEMORANDUM
Dated: 21 st
November, 2011
Subject: Preparation of Results Framework Document for Income tax Department for F. Y. 2012-13
Background:
1.
The Prime Minister had approved in September, 2009 a new mechanism for
“Performance Monitoring and Evaluation System” (PMES)
for all Government
Ministries/Departments in India. Under this system, each Central Government
Department is required to prepare a Results Framework Document ( RFD ) as per a set of Guidelines issued for this purpose.
2.
The High Power Committee (HPC) on Government Performance chaired by the Cabinet
Secretary in its meting held on March, 11, 2011, decided to include the responsibility centres (RCs) under Department of Revenue in phase III of the RFD System.
Accordingly, the Income Tax Department (ITD) is required to prepare its RFD by 5 th
March, 2012 for the year 2012-2013.
3.
DGIT (Admn) had prepared the RFD of ITD for the financial year 2010-11. However, the preparation of RFD for ITD was not mandatory. But with effect from the financial year
2012-13, it is mandatory and the formal procedure laid down by the guidelines is to be followed in its preparations.
Coordinator for RFD:
4.
Chairman, CBDT has nominated DIT (O&MS) as the coordinator for preparing the Results Framework Document (RFD). The coordinator is to perform the following functions as per the Guidelines:
•
Repository of all Information and Knowledge on Performance
Management & Evaluation System (PMES) and RFD
•
Departmental Link with the Cabinet Secretariat
•
Monitor key deadlines including Mandatory Indicators
•
Share knowledge and experience
•
Lead work on RFD
•
Select proper teams for preparation of RFD

RFD, PRIS and Quantum Improvement:
5.
RFD emphasizes thrust on ultimate deliverables and outcomes and takes a comprehensive view of an organizational performance. It is supposed to incorporate all expected deliverables of the Department, namely, physical, quantitative, qualitative, static efficiency (Short-term) and dynamic efficiency (long-term). Accordingly performance measurements include long-term outcome and strategic goals, intermediate and short term outcomes. The performance under this system is to be reduced to a composite score giving a single unified view of the organizational performance.
The RFD process is aimed at making quantum improvement in the Departmental performance which is to be ultimately to be linked to the Performance Related Incentive
Scheme (PRIS) as suggested by the 6 th Pay Commission. The aim of this exercise is to develop a system which is a win-win situation for all the stakeholders, namely, the
‘Nation must win’, ‘Taxpayers must win’ and Employees must win’ .
RFD envisages shift in accountability framework from emphasis on process compliance and input control to effective and responsive delivery of results and services.
Accountability is seen as the ability of the system to deliver results and services effectively and in a responsive manner of the appropriate quality and at the right time.
In order to achieve all these objectives, creative and innovative potential of all the personnel of the Department is to be unleashed so that ITD can be made one of the best tax administrations in the world. RFD process would require a lot of coordination across functional areas. Hence suggestions are being solicited from personnel at all levels and all functional areas of the department.
Board Decision on RFD
6. A Road Map for preparation of RFD was submitted before the full Board on
26-09-2011. The following decisions were taken as per the minutes of the meeting dated 4-10-11:
(i) Appropriate number of Committees may be formed to identify the key objectives and the inter-se priorities along with assignment of weights.
[Action: DIT (O&MS)]
(ii) In order to create awareness amongst officers/officials of the Department, a background note regarding RFD may be uploaded on the irsofficersonline.gov.in.
[Action: DIT (O&MS)]
(iii) Each Zonal Member should have a Zonal Conference on the subject during which the DIT (O&MS) may make a presentation, so that the importance of this issue is underlined.

[Action: All Members of CBDT/DIT (O&MS)]

Roadmap for preparation of RFD
7.
The following course of actions and the time lines has been finalized for the preparation of RFD:
Soliciting suggestions from field officers and the CBDT’s attached Directorates
Inviting suggestions from Staff & Officers associations
Preparation of RFD Holding of Zonal Conferences by the concerned Zonal Members to sensitize filed officers
To be received latest by 20 th
December, 2011
To be received latest by 20 th
December, 2011
November – 2 nd Week of
December, 2011
Setting up various committees with representations from field officers from different geographical locations to come up with recommendations on the content of the RFD after department-wide consultations
Recommendations to be, received from functional committees latest by 31 st
December, 2011
Organizing a two-day workshop before finalization of RFD Sometime in the 2 nd Week of
Preparation of Final Draft by Core drafting committee
January, 2012
Latest by 25 th January, 2012
Inclusion of suggestion and preparation of revised Draft
RFD Document based on the deliberation of two days workshop
Full Board meeting on Draft RFD Document
Latest by 31 st of January, 2012
Sometime in the 1 st Week of
February, 2012
Submission of Final Draft of RFD Document to concerned
Administrative Ministry/ Department
2 nd week of February, 2012
7.1 Letters soliciting suggestions on the following broad issues have been sent to all the cadre-controlling CCsIT & DGsIT/ Officers and Staff associations with the request to respond by 20 th December 2011 (Copy of the letter is available in the RFD folder in irsofficersonline.gov.in) :

What are the objectives to be put on the RFD within the framework of the
Strategic Plan 2011-15?

What operational goals to be determined from the 3 strategic objectives?

What relative weights to be put for each of these objectives?

How do we align the RFD document with the ‘Annual Action Plan’ within the overall framework of the five year ‘Strategic Plan ‘ ?

Do we draw up separate RFDs for the Chief Commissioners at the cadrecontrolling levels for the goals to be achieved by the field officers to facilitate monitoring at the apex level?

How do we select Success Indicators and milestones for measuring success within the framework of suggested guidelines?


What mechanism do we put in place for monitoring and evaluating performance under the RFD process?

Identification of Project Implementation teams
RFD and the Strategic Plan:
7.2 The following 11 functional committees have been set up after clubbing various
Action Points linked to 3 strategic objectives contained in the Strategic Plan 2111-
15 on the basis of work allocation of Members of CBDT:
Functional Committees
Sponsor
1.
Committee on International tax & Transfer Pricing Initiatives
Project
Chairman, CBDT
2.
Committee on taxpayer service Initiatives
3.
Committee on Infrastructure & Financial Management Initiatives
4.
Committee on Strategic Technology Initiatives
5.
Committee on Enforcement Initiatives
Member (L&C)
Member (Inv)
6.
Committee on Research Initiatives & Knowledge Management Member (P&V)
7.
Committee on Ethical Standards
8.
Committee on Human Resource Development Initiatives
Chairman, CBDT
Chairman, CBDT
Member (P&V)
Member (P&V)
9.
Committee on Tax-exempt Entities
10.
Committee on Collection Strategy Initiatives
11.
Committee on Litigation Management Initiatives
Member (IT)
Member (R)
Member (A &J)
The terms of reference for the functional committees are as under:

Consult field officers, Officers & Staff Associations

Making Recommendations on aligning Annual Action Plan with the Strategic
Plan 2011-15
 Which ‘Action Points’ should be included in the RFD document and which are to be made part of the Annual Action Plan?

Operationalization of Strategic Objectives with measurable goals in respect of the various ‘Action Points’

Recommendations in respect of the weightage to be assigned to the objectives in a given functional area
 Coming up with implementation plans for the ‘Action Points’

Identification of Project Implementation teams

Development of success indicators and specific milestones for measuring progress
The functional committees are to submit their reports for the respective functional areas through the project sponsor by 31 st December 2011.
The list of committees and their constitution is available in the RFD folder in irsofficersonline.gov.in)

7.3 The core drafting committee under the guidance of Member P&V will put together the draft RFD document incorporating recommendations from various functional committees and field formations. Prior to finalization of the final draft, there will be a two-day workshop on RFD in the 2 nd
week of January, 2012. The core committee will submit the final draft by 25 th January 2012 so that the final draft could be presented before the full Board in the first week of February, 2012.
7.4 The dates for the Zonal conferences will be intimated after consultation with the concerned Chief Commissioners.
8. Mr. Sanjay Bhargava, an alumnus from IIT, Mumbai & IIM (A) has been appointed as an honorary consultant to help preparing the RFD document. His contact details are: email id: sanjaybhargava@yahoo.com
, cell: 09999994086
9. The following documents are to be jointly read with this OM and are available in the RFD folder in irsofficersonline.gov.in
:

Letters addressed to CCIT/DGIT soliciting suggestions

Letters addressed to the Conveners of Functional Committees

Letters addressed to Officers/Staff Associations

RFD Background note

Vision 2020 & Strategic Plan 2011-15
 Project Sponsor – wise mapping of strategic objectives, sub-goals, action points and functional committees
 Project Sponsor wise Committees

RFD Guidelines 2012-13
 RFD of ITD for 2010-11
Inputs/Suggestions pertaining to RFD may kindly be sent to this Directorate latest by 20 th
December, 2011 through e-mail at ditdoms.km@gmail.com
.
(Nilimesh Baruah)
Director of Income-tax (O&MS)
Encl: As above
Copy to:
1.
PS to the Chairman, CBDT
2.
PS to All Members, CBDT
3.
All CCsIT/DGsIT

4.
All the Members of the functional committees
5.
To the DBC, to be uploaded on the website

PROJECT SPONSOR – WISE MAPPING OF STRATEGIC OBJECTIVES, SUB-
GOALS, ACTION POINTS AND FUNCTIONAL COMMITTEES
F/C
Project Sponsor: Chairman, CBDT
Objectives
To provide efficient and effective administration
To Promote
Voluntary
Compliance
Sub – Goals
1. Meeting the challenges of International tax
administration
2. Incorporating taxpayer perspectives to improve service delivery
4. Single window facility for taxpayers
3. Create a channel strategy for taxpayer services
Action Points

Expand knowledge base of employees on the latest trends in international taxation issues

Capacity building in complex areas of transfer pricing and international taxation

Enhance cooperation with the treaty partners and other international organizations and work towards raising its international profile

Exchange and sharing of information with other tax administrations

Set up overseas units for facilitating exchange of information

Set up good administrative practices for quicker disposal of disputes through mutual agreement procedure

Make dispute resolution panel work efficiently and effectively with proper administrative support and consider expanding its scope

Finalize Advanced Pricing Agreement procedure for transfer pricing

Take operational decisions after incorporating the views of the affected parties

Facilitate participation in the tax system by all segments of taxpayers

Institute a study on barriers of compliance as on ongoing program

Institute a study on compliance cost of different categories of taxpayers
on a periodic basis

Segmentation of taxpayers to develop appropriate channel strategy for communication and tax payer services for providing targeted and timely guidance

Make ASK the flagship project of ITD for excellence in taxpayer service delivery and Set up ASK at all buildings of ITD on fast track

Build capacity to meet the service standards by developing integrated service delivery mechanism cutting across functional areas of ITD

Make all ASK centers of excellence and IS: 15700 compliant

Display Citizen’s Charter of ITD prominently at all buildings of ITD and

 monitor implementation of Citizen’s charter

Communicate service standards contained in the Citizen’s charter to all taxpayers through different channels
Implement scientific record management for improving service delivery
Develop a mechanism for taking feedback from taxpayers and conduct periodic surveys through independent agencies to measure taxpayer satisfaction

Expand the bundle of services to be provided at ASK by providing facilities for online filing of applications including grievances, acknowledging all applications from taxpayers on real time basis, providing facility for online checking of status of all applications and making all relevant information materials available to taxpayers online
Functional Committees
1.
Committee on
International tax &
Transfer Pricing
Initiatives
2.
Committee on taxpayer service Initiatives

Essential Prerequisites for realization of
Vision of ITD
5. Up-gradation of
Infrastructure
6. Effective Financial
Management

Set up Integrated Call Centre facility to check status of applications filed at ASK centers across the country

Develop FAQs for taxpayers centrally for use across the country

Up-gradation of physical & technological infrastructure for the employees as well for the taxpayers to achieve excellence in service delivery

Providing adequate financial resources and a mechanism for the management of the same in the Department so that strategic projects are executed within specified time frame
3.
Committee on
Infrastructure & Financial
Management Initiatives

Objectives
To provide efficient and effective administration
Sub – Goals
1. Developing a robust management information
system
Project Sponsor: Member (L & C)
2. Developing Data warehouse & Business
Intelligence solution
3. STRATEGIC
TECHNOLOGY INITIATIVE i.
Developing strategic technology plan: ii.
Developing
Integrated
Technology Platform:
Making the transition for new
DTC smooth
Action Points

Make provision for a robust Management Information System (MIS) for effective decision making in the plan to reduce reporting requirements by personnel

Bring all data of ITD under a single custodian for formulating progressive tax policy

Create a single data center under a single custodian for storing all taxpayer and third party data

Bring all data of ITD under a single custodian for deploying effective
data mining tools

Upgrade current data mining and other initiatives for Data Warehousing
Solutions for developing Comprehensive Business Intelligence for just in
time enforcement capability

Use Risk Management methodology to identify high risk taxpayers by
continuously revising and enhancing case selection process

Extend unit of risk assessment from individuals to group of taxpayers

Create a Directorate of Risk Management for dedicated attention to management of risk

Formulate Strategic Technology Plan

Augment computational capacity and network connectivity for handling huge data volumes in an environment of dynamic computing paradigms

Plan to remain cost effective and avoid technology obsolescence

Resolve multiplicity of platforms in favor of uniform holistic rule-based application matrix that can optimally run on the state of the art hardware and networks

Integrate all the elements of tax collection process through technology with information seamlessly flowing to the users for informed decision making

Ensure security of all information assets and database through a systemic implementation of periodic vulnerability testing, security & forensic audits to prevent frauds

Make business intelligence out of processed data and make it available
to the actual users almost on real time basis

Upgrade skills of the ITD personnel on a continuous basis

Plan to reduce carbon footprint through green technology

Devise a detailed transition plan for e-governance initiatives

Consider setting up of Special Purpose Vehicle for quick and effective response to the Technology challenge

Integrate the compliance process chain through a common technology platform

Make use of the opportunity to move towards a fully automated technology-driven system

Prepare for the transition with a detailed outreach program both for the taxpayers and departmental personnel
Functional Committees
4.
Committee on Strategic
Technology Initiatives

Objectives
To formulate progressive tax policy
To provide efficient and effective administration
Project Sponsor: Member (Inv.)
Sub – Goals
1. Instituting Study on
Plugging of Tax Leakages.
2. Develop Cyber forensic
Best Practices
3. Ensuring surveillance of fund flow that impact the physical and economic
Security of the country
Action Points

Constitute an expert group for conducting a study on tax leakages and
suggesting measures to plug such leakages

Constitution of the Expert Group to be done before the end of the
financial year 2010-11

Ensure integrity / evidentiary value of digital data by following cyber
forensic best practices

Make standard operating practices (SOP) in respect of cyber forensic best practices for acquiring, analyzing and archiving digital data flowing into the system

To develop a robust system of criminal investigation with focus on fund flows that impact national security

To develop an outreach program to sensitize stakeholders about economic and financial security

To keep tabs on fund flow relating to money laundering, narcotics and terror
To ensure exemplary enforcement against abusive schemes and
corporate tax frauds
Functional Committees
5.
Committee on Enforcement
Initiatives

Project Sponsor: Member (P & V)
Objectives
To formulate progressive tax policy& efficient and effective administration
To provide efficient and effective administration
Sub – Goals
1. Making a multi-year commitment to research program
2. REAL TIME KNOWLEDGE
MANAGEMENT
Action Points

Make a multi-year commitment to research program to transform ITD
into a research driven organization

Set up a research unit having a multi-disciplinary team coordinating
efforts on tax research as an ongoing program

Set up Revenue Services Research Institute with physical and digital
library and dedicated bandwidth

Develop research-driven methods to detect non-compliance and other
aspects of tax administration

Encourage research relevant for tax administration by trainee officers at
National Academy of Direct Taxes and other officers pursuing study
leave

Identify knowledge gap and ascertain knowledge requirements across functional areas of ITD

Identify sources of knowledge creation

Encourage the process of co-creation

Develop institutional memory i.
Ascertaining knowledge requirements of ITD ii.
Developing mechanism for real time knowledge sharing
3. Ensuring that tax practitioners and departmental personnel adhere to professional standards

Provide facility for online learning management system with facility for transmitting and storing webcasts and VOIP

Set up online discussion forum to discuss issues relating to tax administration

Set up mechanism of knowledge sharing through formal & informal channel

Provide for corporate subscription of judicial referencing system and
economic data bases

Administer effective system of sanctions for those who fail to follow the law

Make departmental personnel demonstrate exemplary ethical standards while implementing the tax laws
Functional Committees
6.
Committee on Research
Initiatives & Knowledge
Management
7.
Committee on Ethical
Standards

4. Aligning HR Strategy to
Goals

Formulate a comprehensive HR strategy encompassing all aspects of personnel requirements and development with a sound structure for HR
Directorate

Conduct training needs analysis and invest in high quality training for overall development of personnel

Match job requirements with skill sets of employees for placements by developing Human Resource Information System (HRIS)

Conduct a detailed analysis of shortages of manpower and reasons thereof and come up with possible solutions

Consider a separate recruitment board for expeditious recruitment of staff

Expedite processing of cadre restructuring proposal and develop automatic mechanism for timely periodic evaluation

Create motivational climate for employees to excel by designing a career progression path

Encourage innovations at work

Conduct an employee satisfaction survey through an independent agency for ascertaining satisfaction level of departmental employees
8.
Committee on Human
Resource Development
Initiatives

Objectives
To provide efficient and effective administration
Project Sponsor: Member (IT)
Sub – Goals
1. Developing mechanism for monitoring tax-exempt sector
Action Points

Develop a national data base of tax-exempt entities and list out their activities

Extend facilities for timely registration of the tax-exempt entities

Proactively address misuse of tax-exempt status
Functional Committees
9.
Committee on Tax-exempt
Entities

Project Sponsor: Member (R)
Objectives
To formulate progressive tax policy& efficient and effective administration
To Promote
Voluntary
Compliance
Sub – Goals
1. Developing a Revenue
Base and Forecasting
model.
2. Developing a Tax
Collection strategy
3. Strengthening partnership with tax practitioners; tax deductors; and third party partners


Action Points
Constitute an expert group for developing a revenue forecasting model
Constitution of the Expert Group to be done before the end of the financial year 2010-11

Develop an annual collection plan that would set targets and time standards for both current and arrear demand to be collected on the following basis: a) Analysis of the nature of current and arrears demand to identify collection pattern b) Analysis of the tax records of taxpayers c) Use of risk scoring techniques to create risk profiles of debtors

Develop effective procedures for writing off uncollectable tax arrears

Consider separation of assessment and collection function

Constitute central and zonal Direct Tax Advisory Councils and make these fora effective through regular interaction

Disseminate information through tax practitioners and extend services to them

Strengthen partnership with tax deductors with proper handholding and education programs

Strengthen partnership with third party information providers with guidance

Devise standardized format for supply of third party data and create facility for electronic submission of data
Functional Committees
10.
Committee on Collection
Strategy Initiatives

Objectives
To Promote
Voluntary
Compliance
Project Sponsor: Member (A & J)
Sub – Goals Action Points
1. Litigation Management 
Set up mechanism for putting an end to unproductive litigation

Implement appeal registry and strengthen appellate commissioner machinery for quicker disposal of appeals

Issue revenue rulings on important legal issues having wider ramifications

Complete work on the Judicial Referencing system on fast track and make it available to all personnel
Functional Committees
11.
Committee on Litigation
Management Initiatives

Strategic Objective
To provide efficient and effective admnistration
Committees for preparation of RFD document
Project Sponsor: Chairman, CBDT
Functional Committee No 1: Committee on International tax & Transfer Pricing
Initiatives
Sub – Goals
Meeting the challenges of
International tax
administration
Action Points

Expand knowledge base of employees on the latest trends in international taxation issues

Capacity building in complex areas of transfer pricing and international taxation

Enhance cooperation with the treaty partners and other international organizations and work towards raising its international profile

Exchange and sharing of information with other tax administrations

Set up overseas units for facilitating exchange of information

Set up good administrative practices for quicker disposal of disputes through mutual agreement procedure

Make dispute resolution panel work efficiently and effectively with proper administrative support and consider expanding its scope

Finalize Advanced Pricing Agreement procedure for transfer pricing
Names of the
Officers
1.
R. N. Dash
2. Sunil Gupta
3. L. N. Pant
4. Sanjay Kumar
5. Rahul Naveen
6. D. K. Gupta
Designation
DGIT, International
Taxation
JS (TPL) – II, CBDT
DIT (Intl. Tax),
Mumbai
DIT (Intl. Tax), Kolkata
Director, FT & TR – III,
CBDT
DIT (TP), Delhi
Role in the
Committee
Convener
Member
Member
Member
Member
Member -
Secretary

Project Sponsor: Chairman, CBDT
Functional Committee No 2: Committee on Taxpayer service Initiatives
Strategic Objective
To promote voluntary compliance
Sub – Goals
Incorporating taxpayer perspectives to improve service delivery
Action Points

Take operational decisions after incorporating the views of the affected parties

Facilitate participation in the tax system by all segments of taxpayers

Institute a study on barriers of compliance as on ongoing program

Institute a study on compliance cost of different categories of taxpayers on a periodic basis
Names of the
Officers
Designation
1.Pomela Bali Prasad DGIT, Logistics
2. K. K. Tiwari CIT IX, Mumbai
3. Ashutosh Chandra DIT (Inv), Bangalore
4.Mahendra Singh
5. Jahanzeb Akhtar
6. Neena Kumar
CIT – III, Chennai
DIT (RTI), Bangalore
CIT, Delhi
7. K. L. Maheshwari
8. Navneet Manohar
9. Nilimesh Baruah
CIT, Gandhinagar
Addl DIT, (PR,PP & OL)
DIT (O&MS)
Create a channel strategy for taxpayer services
Single window facility for taxpayers

Segmentation of taxpayers to develop appropriate channel strategy for communication and tax payer services for providing targeted and timely guidance

Make ASK the flagship project of ITD for excellence in taxpayer service delivery and Set up ASK at all buildings of ITD on fast track

Build capacity to meet the service standards by developing integrated service delivery mechanism cutting across functional areas of ITD

Make all ASK centers of excellence and
IS: 15700 compliant

Display Citizen’s Charter of ITD prominently at all buildings of ITD and monitor implementation of Citizen’s
 charter
Communicate service standards contained in the Citizen’s charter to all taxpayers through different channels

Implement scientific record
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Member
Member
Member-
Secretary

management for improving service delivery

Develop a mechanism for taking feedback from taxpayers and conduct periodic surveys through independent agencies to measure taxpayer satisfaction

Expand the bundle of services to be provided at ASK by providing facilities for online filing of applications including grievances, acknowledging all applications from taxpayers on real time basis, providing facility for online checking of status of all applications and making all relevant information materials available to taxpayers online

Set up Integrated Call Centre facility to check status of applications filed at ASK centers across the country

Develop FAQs for taxpayers centrally for use across the country

Project Sponsor: Chairman, CBDT
Functional Committee No 3: Committee on Infrastructure & Financial Management
Initiatives
Strategic Objective Sub – Goals
Essential Pre- requisites of realization of
Vision of ITD
Up-gradation of
Infrastructure
Effective Financial
Management
Action Points Names of the
Officers

Up-gradation of Physical & technological infrastructure for the employees as well for the taxpayers to achieve excellence in service delivery

Providing adequate financial resources and a mechanism for the management of the same in the Department so that strategic projects are executed within
specified time frame
1.
Sunil Verma
2.
K. C. Jain
3.
Shefali Shah
4.
D. N. Mishra
5.
Neeraj Singh
6.
Govind Singhal
7.
Ramesh Chander
Dande
8.
R. K. Gupta
Designation
CCIT, Delhi
CIT – XI, Delhi
DIT (Infra) – II
CIT, Varanasi
Addl CIT (Hq), Kolkata
Addl DIT (Infra)
Addl. DIT (Exp Budget)
DIT (Exp. Budget)
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Member
Member Secretary

Objectives
To provide
Efficient and
Effective tax administration
Project Sponsor: Member (L&C)
Functional Committee No 4: Committee on Strategic Technology Initiatives
Sub – Goals
Developing a robust management information system
Action Points

Make provision for a robust
Management Information System (MIS) for effective decision making in the plan to reduce reporting requirements by personnel

Bring all data of ITD under a single custodian for formulating progressive tax policy

Create a single data center under a single custodian for storing all taxpayer
and third party data
Names of the
Officers
1.
M. K. Mirani
2.
Harish Kumar
3.
Lekha Kumar
4.
D. S. Chawla
5.
Rajiv Mehrotra
6.
Parneet
Sachdeva
Singh
7.
Suresh Kumar
Developing Data warehouse & Business
Intelligence solution

Bring all data of ITD under a single custodian for deploying effective data
mining tools

Upgrade current data mining and other initiatives for Data Warehousing
Solutions for developing Comprehensive
Business Intelligence for just in time
enforcement capability

Use Risk Management methodology to identify high risk taxpayers by continuously revising and enhancing
case selection process

Extend unit of risk assessment from
individuals to group of taxpayers
Create a Directorate of Risk
Management for dedicated attention to management of risk
8.
Govind Lal
9.
S. K. Singh
10.
YVST Sai
11.
Ashish Abrol
Strategic Technology
Initiative i.
Ascertaining strategic technology plan

Formulate Strategic Technology Plan

Augment computational capacity and network connectivity for handling huge data volumes in an environment of dynamic computing paradigms

Plan to remain cost effective and avoid technology obsolescence

Resolve multiplicity of platforms in favor
Designation
DGIT (Systems)
DIT (S) – III, Delhi
DIT (S) – IV, Delhi
DIT (Systems – OSD),
DTC
DIT (S) – I, Delhi
CIT (A), Hyderabad
CIT (A), Jalandhar
CIT
Kolkata
(Judicial),
DIT (Inv), Delhi
Addl. CIT Range 1,
Hyderabad
Addl. DIT (Systems)
Role in the
Committee
Convener
Member
Member
Member
Secretary
Member
Member
Member
Member
Member
Member
Member

ii.
Developing integrated
Technology
Platform: Making the transition for new DTC smooth of uniform holistic rule-based application matrix that can optimally run on the state of the art hardware and networks

Integrate all the elements of tax collection process through technology with information seamlessly flowing to the users for informed decision making

Ensure security of all information assets and database through a systemic implementation of periodic vulnerability testing, security & forensic audits to prevent frauds

Make business intelligence out of processed data and make it available to the actual users almost on real time basis

Upgrade skills of the ITD personnel on a continuous basis

Plan to reduce carbon footprint through green technology

Devise a detailed transition plan for egovernance initiatives

Consider setting up of Special Purpose
Vehicle for quick and effective response to the Technology challenge

Integrate the compliance process chain through a common technology platform

Make use of the opportunity to move towards a fully automated technologydriven system

Prepare for the transition with a detailed outreach program both for the taxpayers and departmental personnel

Objectives
To formulate progressive tax policy
To provide efficient and effective administration
Project Sponsor: Member (Inv.)
Functional Committee No 5: Committee on Enforcement Initiatives
Sub – Goals Action Points
Instituting Study on
Plugging of Tax Leakages.

Constitute an expert group for conducting a study on tax leakages and suggesting measures to plug such leakages

Constitution of the Expert Group to be done before the end of the financial year 2010-11
Names of the
Officers
1.
M. Sailo
2.
K. V. Choudhary
3.
Sushil Chandra
4.
Shishir Jha
5.
Madhu Mahajan
Designations
DGIT (Intelligence.)
DGIT (Inv.), Delhi
DIT (Inv.) – I,
Mumbai
CIT (Inv.), CBDT
6.
H. B. Mahanta
DIT (CIB), Jaipur
DIT (I&CI), Delhi
7.
V. K. Pandey DIT (Inv.) – II,
Mumbai
Develop Cyber forensic
Best Practices

Ensure integrity/ evidentiary value of digital data by following cyber forensic best practices
Make standard operating practices
(SOP) in respect of cyber forensic best practices for acquiring, analyzing and archiving digital data flowing into the system
8.
Ashish Verma
10.Gunjan Prasad
11.Madhukar Bhagat
Ensuring surveillance of fund flow that impact the physical and economic
Security of the country

To develop a robust system of criminal investigation with focus on fund flows that impact national security

To develop an outreach program to sensitize stakeholders about economic and financial security

To keep tabs on fund flow relating to
 money laundering, narcotics and terror
To ensure exemplary enforcement against abusive schemes and corporate tax frauds
CIT (A), Agra
DIT (CI HQ), Delhi
Addl DIT, Special
Cell, Delhi
Role in the
Committee
Joint Conveners
Member
Member
Secretary
Member
Member
Member
Member
Member
Member

Project Sponsor: Member (P & V)
Functional Committee No 6: Committee on Research Initiatives& knowledge Management
Objectives Sub – Goals Action Points
To provide progressive tax policy
&
Efficient and
Effective tax administration
Making a multi-year commitment to research program

Make a multi-year commitment to research program to transform ITD
into a research driven organization

Set up a research unit having a multidisciplinary team coordinating efforts on tax research as an ongoing
program

Set up Revenue Services Research
Institute with physical and digital
library and dedicated bandwidth

Develop research-driven methods to detect non-compliance and other aspects of tax administration

Encourage research relevant for tax administration by trainee officers at
National Academy of Direct Taxes and other officers pursuing study leave
1.
2.
Names of the
Officers
R. K. Tiwari
Rajnish Kumar
3.
Tejinder Singh
4.
Pushpinder Singh
Puniha
5. K. K. Srivastava
Designations
CCIT – IV, Delhi
CIT (L&R)
CIT V, Pune
CIT, Shimla
6. R. Ramachandran
7. V. Anandrajan
DIT (RTI), Kolkata
Addl. DG (Training),
NADT
CIT (CPC), Pune
8. Abhay Damle
9. Dr. Vinay Kumar
Singh NADT
10. Amitabh Kumar DIT (PR,PP & OL)
DIT(RTI),Ahmedabad
Addl. DIT (Faculty),
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Member
Member
Member
Member Secretary
Real Time Knowledge
Management i.
Ascertaining knowledge requirements of ITD

Identify knowledge gap and ascertain knowledge requirements across functional areas of ITD

Identify sources of knowledge creation

Encourage the process of co-creation

Develop institutional memory

ii.
Developing mechanism for real time knowledge sharing

Provide facility for online learning management system with facility for transmitting and storing webcasts and VOIP

Set up online discussion forum to discuss issues relating to tax administration

Set up mechanism of knowledge sharing through formal & informal channel
Provide for corporate subscription of judicial referencing system and economic data bases
Objectives
To provide
Efficient and
Effective tax administration
Project Sponsor: Member (P & V)
Functional Committee No 7: Committee on Ethical Standards
Sub – Goals Action Points
Ensuring practitioners that tax and departmental personnel adhere to professional standards

Administer effective system of sanctions for those who fail to follow the law

Make departmental personnel demonstrate exemplary ethical standards while implementing the tax laws
1.
2.
3.
4.
5.
Names of the
Officers
Sudha Sharma
Surbhi Sinha
S. K. Mishra
B. K. Sinha
Adarsh Modi
6.
Nishi Singh
Designations
DGIT (Vigilance), Delhi
CIT (Central), Jaipur
CIT – II, Pune
CIT (A), Delhi
Addl. DIT (Vigilance),
Delhi
CIT (Vigilance), CBDT
Role in the
Committee
Convener
Member
Member
Member
Member
Member Secretary

Project Sponsor: Member (P & V)
Functional Committee No 8: Committee on Human Resource Development Initiatives
Objectives Sub – Goals Action Points
To provide
Efficient and
Effective tax administration
Aligning HR Strategy to
Goals

Formulate a comprehensive HR strategy encompassing all aspects of personnel requirements and developments with a sound structure for HR Directorate

Conduct training needs analysis and invest in high quality training for overall development of personnel

Match job requirements with skill sets of employees for placements by developing Human Resource
Information System (HRIS)

Conduct a detailed analysis of shortages of manpower and reasons thereof and come up with possible solutions

Consider a separate recruitment board for expeditious recruitment of staff

Expedite processing of cadre restructuring proposal and develop automatic mechanism for timely periodic evaluation

Create motivational climate for employees to excel by designing a career progression path

Encourage innovations at work

Conduct an employee satisfaction survey through an independent agency for ascertaining satisfaction level of departmental employees
Project Sponsor: Member (IT)
Names of the
Officers
Designations
1.
Promila Bhardwaj DGIT (HRD), Delhi
2.
Krishna Saini CIT – II, Baroda
3.
R. R. Singh DIT (Systems) – V, Delhi
4.
Simar Singh Negi CIT (Central), Pune
5.
Nikhil Choudhary Addl. DIT (HRD), Delhi
DIT (HRD), Delhi
6.
Binay Kumar Jha
Functional Committee No 9: Committee on Tax-exempt Entities
Objectives
To provide
Efficient and
Sub – Goals

Developing mechanism
Action Points

Develop a national data base of taxexempt entities and list out their activities
1.
Names of the
Officers
S. P. Swain
2.
P. V. Rao
Designations
DGIT, Exemption
CIT (A) - Hyderabad
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Secretary
Role in the
Committee
Convener
Member

Effective tax administration for monitoring taxexempt sector

Extend facilities for timely registration of the tax-exempt
entities

Proactively address misuse of tax-
exempt status
3.
R. M. Garg
4.
K. K. Tripathi
5.
Raman Chopra
6.
Pradip Mehrotra
Objectives
To formulate progressive tax policy
&
Efficient and
Effective tax administration
Project Sponsor: Member (Revenue)
Functional Committee No 10: Committee on Collection strategy Initiatives
Sub – Goals
Developing a Revenue
Base model and Forecasting
Developing a Tax
Collection strategy
Action Points

Constitute an expert group for developing a revenue forecasting model

Constitution of the Expert Group to be done before the end of the financial year 2010-11
1.
2.
Ashok Bhardwaj
3.
Names of the
Officers
Anita Kapur
Sheba
Bhattacharya
4.
Sameer
Mukhopadhay 
Develop an annual collection plan that would set targets and time standards for both current and arrear demand to be collected on the following basis:
5.
6.
Ashutosh Dikhit
Sanjay Patra
7.
Smita Jhingran d) Analysis of the nature of current and arrears demand to 8.
Ravi Agarwal
CIT (Central) – II,
Delhi
DIT
Hyderabad
(Exempt),
Director (ITA) I
CIT (ITA), CBDT
Member
Member
Member
Member-Secretary
Designations
DGIT (Admn.)
CIT – III, Delhi
DIT (Recovery)
DIT (TDS)
JS (TPL) - I
CIT
Mumbai
(Central),
CIT (TDS), Delhi
DIT (Systems) – II
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Member
Member


 identify collection pattern e) Analysis of the tax records of taxpayers f) Use of risk scoring techniques to create risk profiles of debtors
Develop effective procedures for writing off uncollectable tax arrears
Consider separation of assessment and collection function
9.
Ajay Kumar
10.
Nitin Gupta
Strengthening partnership with tax practitioners; tax deductors; and third party partners

Constitute central and zonal Direct
Tax Advisory Councils and make these fora effective through regular interaction

Disseminate information through tax practitioners and extend services to them

Strengthen partnership with tax deductors with proper handholding and education programs

Strengthen partnership with third party information providers with
 guidance
Devise standardized format for supply of third party data and create facility for electronic submission of data
Director (Budget),
CBDT
CIT (IT & CT)
Member
Member Secretary

Project Sponsor: Member, (A & J)
Functional Committee No 11: Committee on Litigation Management Initiatives
Objectives
To Promote
Voluntary
Compliance
Sub – Goals Action Points
Litigation Management

Set up mechanism for putting an end to unproductive litigation

Implement appeal registry and strengthen appellate commissioner machinery for quicker disposal of appeals

Issue revenue rulings on important legal issues having wider
 ramifications
Complete work on the Judicial
Referencing system on fast track and make it available to all personnel
1.
2.
3.
Names of the
Officers
A.K Jain
R.K Gupta
Anirudh Kumar
4.
Yogesh Pandey
5.
6.
Vinodanand Jha
Ajay Goel
7.
Ramesh Yadav
Designations
DGIT
Ahmedabad
(Inv.),
DIT L & R) – I
CIT (Appeals), Delhi
CIT (Appeals), Rajkot
CIT, Bhopal
Director (ITA-II), CBDT
CIT (A &J), CBDT
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Member
Secretary

Coordinating
Member
Member (P&V)
Core Drafting Committee
Name of the Committee
Core Drafting Committee
Proposed Function
 Putting together the final draft of
RFD on the basis of recommendations from various functional committees
Names of the
Officers
1.
Promila Bhardwaj
2.
Nishi Singh
3.
Binay Kr. Jha,
Designations
DGIT (HRD)
CIT (Vig)
4.
D. K. Gupta
5.
R.K. Gupta
6.
Ramesh Yadav
DIT (HRD)
DIT (TP), Delhi
DIT (Exp Budget)
CIT (A & J), CBDT
7.
Nitin Gupta
8.
Amitabh Kumar
CIT (IT & CT), CBDT
DIT (PR,PP &OL)
9.
10.
Pradip
Mehrotra
11.
Parneet Singh
Sachdeva
12.
CIT (ITA)
CIT (Appeals)
Hyderabad
– V,
Sanjay Kumar DIT (Intl. Tax.), Kolkata
13.
14.
Shishir Jha
Suresh Kumar
D.S. Chawla
CIT (Inv.), CBDT
CIT (A), Jalandhar
DIT (S) OSD-DTC
15.
Nilimesh
Baruah
16.
Manoj Joshi
DIT (O&MS)
CIT (OSD), HRD
Role in the
Committee
Convener
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member
Member-Secretary

1. The Prime Minister had approved in September, 2009 a new mechanism for “Performance Monitoring and Evaluation System” (PMES) for all Government Ministries/Departments in India. Under this system, each Central Government Department is required to prepare a Results
Framework Document (RFD) as per a set of Guidelines issued for this purpose.
The essence of PMES is that:
 Each Department will prepare a Results-Framework Document (RFD) at the beginning of each year with the approval of the Minister concerned
 RFD will represent an understanding between the Minister representing the people’s mandate and the Secretary to the
Department responsible for implementing this mandate
 RFD will set out the objectives of the Department and decide on the inter-se priority among the objectives
 RFD will also contain the details of policies, programs and projects which are to be implemented to achieve the agreed objectives
 Further, to measure progress in implementing these projects, RFD will contain details of targets and success indicators
1.1 During the Phase I of implementation of PMES (2009-2010), 59
Departments/Ministries were asked to prepare RFDs. In Phase II which was being implemented during the year 2010-2011, the system was extended to
62 departments and 760 responsibility centers (which are basically attached offices, subordinate offices and autonomous organizations) under these departments.

1.2 The High Power Committee (HPC) on Government Performance chaired by the Cabinet Secretary in its meting held on March, 11,
2011, decided to include the responsibility centres (RCs) under
Department of Revenue in phase III of the RFD System. The RCs under department of revenue include the Income Tax Department (ITD), Customs
& Central Excise and Enforcement Directorate. ITD is required to prepare its RFD by 5 th March, 2012 for the year 2012-2013. The Results
Framework of ITD will have to be submitted to the Cabinet Secretariat, by the 15the April of each year and the same is also required to be put up on the websites of the Department by 15the of April each year.
2. RFD process and Timelines for preparation
Beginning of the year
2.1 At the beginning of each financial year, with the approval of the
Finance Minister, ITD will prepare RFD consistent with the RFD guidelines.
Preparation of RFD will be based on answers to three simple questions:
1.
RFD seeks to know what the organization’s key objectives are and their interse priorities
2.
What actions department proposes to achieve these objectives?
3.
How do we measure progress in implementing these actions?
The answer to these questions constitutes the core of the RFD.
During the year
2.2 After six months, the Results Framework as well as the achievements of ITD against the performance goals laid down at the beginning of the year will be reviewed by concerned administrative ministry/department. At this stage, the Results-Framework Documents may have to be reviewed and the goals reset if required, taking into account the priorities at that point of

time. This will enable to factor in unforeseen circumstances and other developments in the Economy, such as drought conditions, natural calamities or epidemics etc. The Cabinet Secretariat will select RFDs of about 24
Responsibility Centres using a stratified random sampling procedure and get the same examined by the members of the Ad-hoc Task Force (ATF) along with RFDs for the parent department/ministry.
End of the year.
2.3 At the end of the year, the Department will have to review and prepare a report listing its achievements against the agreed results in a prescribed format. This report is expected to be finalized by the 1 st of May
2013. After scrutiny by the concerned administrative ministry/department, these results will have to be placed in the website of the Department by 1 st of June 2013. The same cycle is to continue every year.
The following specific timelines have been laid down for 2012-2013 for
ITD.
WHEN WHAT WHO
2012
2013
March
5
Submit final draft of Results-Framework document to concerned administrative/department
May 1 Submit year-end evaluation report on progress during the year
June 1 Place the evaluation result in the respective website
Mandatory Indicators:
ITD
ITD
ITD
3. RFD to be prepared by the ITD must contain the following mandatory indicators: a.
Timely submission of RFD for 2012-2013 b.
Timely submission of Results for 2012-2013 c.
Finalize a Strategic Plan for ITD

d.
Identify potential areas of corruption related to organisational activities and develop an action plan to mitigate them. e.
Implementation of Sevottam
(i) Create a Sevottam Compliant system to implement, monitor and review Citizen’s Charter
(ii) Create a Sevottam Compliant system to redress and monitor public grievances.
The total weight for the mandatory indicators in RFDs will be 11%.
RFD Format
4. The RFD document for the Income-tax Department is required to have the following six sections:-
Section 1 : Organization’s Vision, Mission, Objectives and
Functions of ITD
Section 2 :
Section 3 :
Section 4 :
Section 5 :
Interse priorities among the key objectives, success indicators and targets in ITD
Trend values of the success indicators
Description and definition of success indicators and proposed measurement methodology
Specific performance requirements from other departments/organizations that are critical for delivering agreed results.
Section 6 : Outcome/Impact of activities of ITD
4.1 DGIT (Admn) had prepared the RFD of ITD for the financial year
2010-11. However, the preparation of RFD for ITD was not mandatory. But with effect from the financial year 2012-13, it is mandatory and the formal procedure laid down by the guidelines is to be followed in its preparations.
Coordinator for RFD:
5. Chairman, CBDT had nominated DIT (O&MS) as the coordinator for preparing the Results Framework Document (RFD) for the Income Tax

Department for the Financial Year 2012-13. As per the Cabinet Secretariat
Guidelines, the coordinator is to perform the following functions:
• Repository of all Information and Knowledge on Performance
Management & Evaluation System (PMES) and RFD
• Departmental Link with the Cabinet Secretariat
• Monitor key deadlines including Mandatory Indicators
• Share knowledge and experience
• Lead work on RFD
• Select proper teams for preparation of RFD
Board Decision on RFD
6. A presentation on RFD was made before the full Board on 26-09-2011 and a Road Map for preparation of RFD was submitted. The following decisions were taken as per the minutes of the meeting dated 4-10-11:
(iv) Appropriate number of Committees may be formed to identify the key objectives and the inter-se priorities along with assignment of weights.
[Action: DIT (O&MS)]
(v) In order to create awareness amongst officers/officials of the
Department, a background note regarding RFD may be uploaded on the irsofficersonline.gov.in.
[Action: DIT (O&MS)]
(vi) Each Zonal Member should have a Zonal Conference on the subject during which the DIT (O&MS) may make a presentation, so that the importance of this issue is underlined.
[Action: All Members of CBDT/DIT (O&MS)]
Strategic Plan and RFD
7. Starting point of the RFD exercise is the Vision Document of ITD. The planning hierarchy is explained through the following sequence:

7.1 As can be seen from the planning hierarchy, RFD represents the implementation leg for the Vision, Long term Strategy and the Strategic 5 year plan of the ITD. While approving the Vision 2020 document vide minutes of the Board meeting No 15/2010 dated 23-11-2011, CBDT had asked to put up an implementation plan. As part of that exercise under the guidance of then Member (R), various projects were identified.
7.2 The chapter 4 on Strategic Plan of the Vision 2020 document contains three macro projects under the three enablers mentioned in the Vision statement, namely, Formulation of Progressive Tax Policy, Efficient &
Effective Administration and Improving Voluntary Compliance. There are a number of Action Points under the three macro areas. As part of the exercise, a chart was prepared by clubbing various Action Points and listing them under each of the Members of the Board as per the current allocation of work. In case of overlapping jurisdictions, one of the Members is taken as the project sponsor for the convenience of coordination. The Chart mapping the 3 strategic objectives, sub-goals, action points and the project sponsor is enclosed at Annexure I.
7.3 RFD is aimed at improving performance of the Department through the mechanism of performance agreement, thereby making the top management accountable. It is expected that the accountability will be percolated down to all levels through the ‘trickle down effect’ .
The Performance Management and Evaluation System (PMES) on which
RFD is based, takes a comprehensive view of an organizational performance.
Hence, RFD is supposed to incorporate all expected deliverables of an organization, namely, physical, quantitative, qualitative, static efficiency
(Short-term) and dynamic efficiency (long-term). The performance under this system is to be reduced to a composite score giving a single unified view of the organizational performance.
Hence, it is important to cover all the representative functional areas in the RFD document having a bearing on the overall performance of the Department.

Course of actions, Timelines for completing the RFD document:
7.4. The RFD document in the form of a Performance agreement is to be finalized by 5 th March 2012 after approval from the Finance Minister through the Revenue Secretary as per the guidelines. Prior to finalization of the document, department-wide consultation is required. Therefore, timelines have to be fixed for finalization of the RFD document well before the deadline of 5 th March 2012.
First step is to write letters to all the cadre-controlling CCsIT &
DGsIT/ officers and staff associations along with a detailed background note soliciting suggestions by 20 th December 2011on the following broad issues:
 What are the objectives to be put on the RFD within the framework of the Strategic Plan 2011-15?
 What operational goals to be determined from the 3 strategic objectives?
 What relative weights to be put for each of these objectives?
 How do we align the RFD document with the ‘Annual Action Plan’ within the overall framework of the five year ‘Strategic Plan ‘ ?
 Do we draw up separate RFDs for the Chief Commissioners at the cadre-controlling levels for the goals to be achieved by the field officers?
 Identification of Project Implementation teams
 Recommendation on Selection of Success Indicators and milestones for measuring success within the framework of suggested guidelines
 What mechanism do we put in place for monitoring and evaluating performance under the RFD process?

7.5 After identification of ‘Action Points’ as summarized in Annexure I, the next step would be to set up various functional committees to draw up the structure of the RFD for various functional areas. The following 11 functional committees have been identified on the basis of clubbing functional areas reflecting the allocation of work to different Members of
CBDT:
Functional Committees
Sponsor
12.
Committee on International tax & Transfer Pricing Initiatives
Project
Chairman, CBDT
13.
Committee on taxpayer service Initiatives Chairman, CBDT
14.
Committee on Infrastructure & Financial Management Initiatives Chairman, CBDT
15.
Committee on Strategic Technology Initiatives
16.
Committee on Enforcement Initiatives
Member (L&C)
Member (Inv)
17.
Committee on Research Initiatives & Knowledge Management Member (P&V)
18.
Committee on Ethical Standards
19.
Committee on Human Resource Development Initiatives
20.
Committee on Tax-exempt Entities
Member (P&V)
Member (P&V)
Member (IT)
21.
Committee on Collection Strategy Initiatives
22.
Committee on Litigation Management Initiatives
Member (R)
Member (A &J)
Since monitoring and evaluation is an important aspect of RFD process, a new results-based monitoring and evaluation system has to be put in place.
The necessary pre-condition for such a system to work, is to have a
Management Information Systems (MIS). Hence, development of robust
MIS is taken as one of the sub-goals for the “Strategic technology initiatives” committee.
7.6 The terms of reference for the functional committees could be as under:
 Consult field officers, Officers & Staff Associations
 Making Recommendations on aligning Annual Action Plan with the Strategic Plan 2011-15
 Which ‘Action Points’ should be included in the RFD document and which are to be made part of the Annual Action Plan?

 Operationalisation of Strategic Objectives with measurable goals in respect of the various ‘Action Points’
 Recommendations in respect of the weightage to be assigned to the objectives in a given functional area
 Coming up with implementation plans for the ‘Action Points’
 Identification of Project Implementation teams
 Development of success indicators and specific milestones for measuring progress
The functional committees are to submit their reports for the respective functional areas through the project sponsor by 31 st December
2011.
7.7 It is further proposed that a core drafting committee is also constituted which will put together the final RFD document incorporating recommendations from various functional committees and from field formations.
7.8. Prior to finalization of the draft document by the core drafting committee, it is proposed to organize a two-day workshop on preparation of
RFD to discuss all the recommendations and the draft RFD prepared sometime in the 2 nd week of January, 2012. DOMS has been organizing an annual workshop for the last 3 years on “Innovation in Public
Administration”.
The proposed workshop could be part of the series.
The core committee will submit the final draft by 25 th January 2012 so that the document could be presented before the full Board in the first week of February, 2012.

Roadmap for preparation of RFD
8. The following course of actions with time lines has been proposed for the preparation of RFD for ITD:
Soliciting suggestions from field officers and the
CBDT’s attached Directorates
To be received latest by 20 th
December, 2011
Inviting suggestions from Staff & Officers associations
To be received latest by 20 th
December, 2011
Preparation of RFD Holding of Zonal Conferences by the concerned zonal Members to sensitize filed officers
November – 1 st Week of
December, 2011
Setting up various committees with representations from field officers from different geographical locations to come up with recommendations on the content of the RFD after department-wide consultations
Organizing a two-day workshop before finalization of RFD
Recommendations to be, received from functional latest by 31 st committees
December, 2011
Sometime in the 2 nd Week of
January, 2012
Preparation of Final Draft by Core drafting committee
Latest by 25 th January, 2012
Inclusion of suggestion and preparation of revised
Draft RFD Document based on the deliberation of two days workshop
Full Board meeting on Draft RFD Document
Latest by 31 st of January,
2012
Sometime in the 1
February, 2012 st Week of
Submission of Final Draft of RFD Document to concerned Administrative Ministry/ Department
2 nd week of February, 2012
8.1 All documents relating to the preparation of RFD would be uploaded to irsofficeronline.gov.in immediately with a view to invite suggestions from the field officers regarding objectives to be put in the RFD within the framework of the Strategic Plan 2011-15.
Criteria for Selecting Success Indicators:

9. Since RFD framework goes beyond the output to cover both “Outcome” and
“Impact” , identification of appropriate success indicators with specific timelines for measuring progress in implementation of these projects, is an integral part of
RFD process. There are 3 mandatory success indicators as per the RFD guidelines; namely, Preparation of a Strategic Plan, Sevottam-compliant systems for implementation of citizen’s charter & grievance redressal and an action pla n to mitigate corruption to be achieved by specific dates.
9.1 RFD guidelines provide 2 set of criteria SMART & CREAM for selecting the success indicators as explained below:
SMART:
Specific :
Measurable :
Achievable :
Clear as to what it is that is being aimed to achieve
Clear and transparent measure of success
Target which is stretched and reflects the department’s ambitions for improved standards of public services,
Relevant : based on some evidence that demonstrates what is possible
Target that reflects what the department is trying to achieve and not simply what is easily measurable
Clear as to when the target should be delivered by Timed
CREAM:
:
Relevant
Economic
:
:
Adequate :
Clear :
Monitorable :
Appropriate to the subject at hand
Available at a reasonable cost
Provide a sufficient basis to assess performance
Precise and unambiguous
Amenable to independent validation
These guidelines may be kept in mind while making recommendations on the success indicators. Selection of success indicators will play a critical role in improving both static and dynamic efficiency of the Department.
Accordingly, the indicators will have to be very carefully selected.

10. RFD is aimed at improving performance of the Department through the mechanism of performance agreement. The Performance Management and Evaluation System (PMES) on which RFD is based, takes a comprehensive view of an organizational performance. Once the RFD at the macro level is prepared during the financial year 2012-13, it is proposed that the Directorate of
HRD may be given the responsibility of marrying the macro and the micro aspects of performance management in the department by developing a new system of performance management for individual employees and groups.
------

1. Overview
2.
3.
4.
5.
Indicators
3
Section 1- Vision, Mission, Objectives and Functions
5
Section 2 - Inter-se priorities among key Objectives,
Success indicators and targets
7
Section 3 - Trend Values of the Success Indicators
11
Section 4 - Description & Definition of Success and proposed measurement methodology
14
6. Section 5 - Specific performance requirements from other Departments that are critical for delivering agreed results 15

The Results-Framework Document (RFD) of the Central Board of
Direct Taxes, Department of Revenue, Government of India for the
Financial Year 2010-11 reflects the vision, mission, objectives, functions and performance obligations of the income tax department.
These commitments support the efforts to dynamically improve the performance in different aspects of taxpayer services and revenue mobilisation programmes being implemented by this Department across the country.
The Central Board of Direct Taxes has carefully reviewed its priorities with a view to sharpen the different mechanism for achieving focused, effective and meaningful implementation of the taxpayer services and revenue mobilisation programmes of the Department.
We are working towards:
 Upholding our commitments for the nation building process through progressive tax policy
 Continue ensuring effective vigilance and monitoring for the implementation of the tax collection and taxpayer services programmes
 Remove the bottlenecks detected so far in the smooth and effective implementation of these programmes
 Capitalise on the positive results achieved so far with a view to ensure further tax growth
 Inculcating a healthy tax culture, where the taxpayers and the tax collectors discharge their obligations with the sense of responsibility towards nation building

To be successful in our priorities we are working towards:
 Equity and transparency
 Promoting taxpayer awareness towards voluntary compliance, by educating taxpayers and citizens about tax laws
 Effective deterrence against tax evasion
 Providing information, forms and other assistance at the facilitation counters and also on the website
 Continuous research as the foundation of tax policy and administration; and
 Adopting technology as an enabler for improved service delivery
2000-01 068305
2001-02
2002-03
069198
083088
2003-04 105088
2004-05 132771
2005-06 165208
2006-07 230184
2007-08 312213
2008-09 333828
2009-10 377982

To partner in the nation building process - through progressive tax policy, efficient and effective implementation; and improved voluntary compliance.
 To formulate progressive tax policies
 To make compliance easy
 To enforce tax laws with fairness
 To deliver quality services
 To continuously upgrade skills and build a professional and motivated workforce




Collection of Income Tax & Corporate tax as a significant & growing portion of the Govt’s revenue receipts
Implementation of
Compliant Citizen’s Charter &
Public Grievance Redress Mechanism
Speedy & Fair Disposal of Pending Income Tax Appeals
Efficient Manpower Management & HRD in the Income Tax

Department
State of the art infrastructure to facilitate efficient delivery system & pleasant environment for tax payers & administrators

CBDT is the statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex-officio capacity also function as a Division of the Ministry of Finance, dealing with matters relating to levy and collection of direct taxes.
CBDT is the apex body charged with the administration of direct taxes. The functions performed by CBDT (with the help of various
Chief Commissioners and Director Generals of Income Tax under its administrative control) are:
 Formulating the policy regarding direct tax laws and their implementation
 Assessment and collection of direct taxes; developing strategy for revenue enhancement; recovery of taxes; widening of tax base
 Framing and implementing the general policy regarding o Organisation of the set-up and the structure of the
Income-tax department o Methods and procedures of the work of the Income-tax department o Measures for disposal of assessments, collection of taxes, prevention and detection of tax evasion and tax avoidance o Recruitment, training and other matters pertaining to service conditions and career prospects of the personnel of the Income-tax department o Grant of rewards and appreciation certificates, including
awards to taxpayers o Infrastructure requirements of the Income-tax department o Computerisation of the Income-tax department
 Operating the first appellate machinery comprising of
Commissioners of Income tax (Appeals) to perform the work of disposal of appeals against the orders of the assessing officers
 Having an investigation machinery with the aim to curb tax evasion and unearth unaccounted money

 Coordination with the other investigation and enforcement agencies
 Handling the taxpayers grievances
 Dissemination of information relating to direct taxes

Column 1
Section-2
Table-1: Inter-se priorities among key Objectives, Success indicators and targets for 2010-11
Column
2
Column 3 Column 4
Objective Weight Actions Success Indicator Unit
Column 5
Weight
Objective1 :
Collection of
Income Tax &
Corporation tax as a significant & growing portion of the Govt’s revenue receipts
.40
Objective 2:
Implementation of Sevottam
Compliant
Citizen’s Charter
& Public
Grievance
Redress
Mechanism
.20
Objective 3:
Speedy Disposal of Pending
Income Tax
Appeals
.15
.6 Net Tax Collection during the year
Recovery of Arrear
Demand
Collection of Tax from
Tax Deducted at Source
(TDS)
Net Tax Collection during the year as a % of the budget targets i.e. Rs 430000 crore
Cash collection as a % the arrear demand target i.e. Rs
13906 crore
TDS Collection during the year as a % of the target value (40% of Total
Collections i.e. Rs 172000 crore)
Rs in crores
(% of the budget targets )
Rs in crores
(% of the budget targets )
Rs in crores
(% of the targets )
.2
.2
Create a Sevottam
Compliant system to implement, monitor & review Citizen’s Charter
Create a Sevottam
Compliant system to redress & monitor Public
Grievances
Independent Audit of
Implementation of
Citizen’s Charter
Independent Audit of
Implementation of Public
Grievance Redress System
Independent Rating of
Implementation of Public
Grievance Redress
Mechanism
Completion of Activity for 3
ASK (Aayakar Sampark
Kendras) centres & replication for 10 others
Completion of Activity for 3
ASK (Aayakar Sampark
Kendras) centres & replication for 10 others
Independent Rating of
Implementation of Citizen’s charter
Date of
Completion
Date of
Completion
.4
.4
Rating score by the Independent agency, as per the Sevottam evaluation methodology
Rating score by the Independent agency, as per the Sevottam evaluation methodology
.1
.1
Disposal of pending (as on
1.4.2010) High demand appeals i.e. Basket-1 appeals (involving disputed demand of Rs 10 lakh or above)
Disposal of Income tax appeals other than HD appeals filed before
1.04.09 i.e. Basket-2
No. of Basket 1 Appeals disposed as a % of achievable disposal figures as per the Action Plan 2010-
11 (i.e. 38373)
No. of Basket 2 Appeals disposed as a % of achievable disposal figures as per the Action Plan 2010-
% disposal
% disposal
.5
.3
Excellent
100%
421400
(98%)
13906
(92%)
167700
(97.5%)
March 31,
2011
March 31,
2011
100
100
85%*/**
85%*/**
90%
95%
--
--
95
95
80%
80%
Column 6
Target/Criteria Value
V. Good
90%
90%
Good
80%
80%
Fair
70%
70%
80%
92.5%
--
--
90
90
75%
75%
75%
90%
--
--
85
85
70%
70%
Poor
60%
60%
60%
85%
--
--
80
80
65%
65%

Objective 4:
Efficient
Manpower
Management &
HRD
.15
Objective 5:
State of the art infrastructure to make efficient delivery system & pleasant environment for tax payers & administrators
.10 appeals 11(i.e. 37153)
Disposal of Income tax appeals other than HD appeals filed between
1.04.09 -31.3.2010 i.e.
Basket-3 appeals
Setting up of a Human
Resource Information
System (HRIS)
Follow up of the Cadre review of the Income Tax
Department
Removing workforce shortage
Advanced Mid Career
Training Scheme for IRS officers
No. of Basket 3 Appeals disposed as a % of achievable disposal figures as per the Action Plan 2010-
11(i.e. 20761)
% disposal .2
Identifying the parameters for HRIS, formulation of preliminary estimates and obtaining govt sanction for expenditure
Providing required clarifications on queries by other departments within 2 weeks
Preparation of region-wise deployment plan
Report of Task Force for recommending ways to overcome endemic shortage in the cadre of Stenographers
& approval thereof
Approval of setting up of
Alternative Recruitment
Machinery for special drive to overcome workforce shortage
Designing of course contents, selection of partner institutions & finalisation of training calendar & Selection of participants
Commencement of training
Completion of activity, by date
% of timely replies
Completion of activity, by date
Completion of activity, by date
Completion of activity, by date
.20
.20
.20
.20
Resolving Service related disputes
Revision of recruitment rules
Setting up a dispute resolution machinery for examination of individual cases
Submission of revised recruitment rules by
31.3.2011
Submission of reports after examination of cases referred by the CBDT (%)
% of employee categories covered
.10
.10
Acquisition of Office space
Construction of residential units for officials of the department (Type IV, V &
VI)
Upgradation of training infrastructure of the department (NADT &
RTIs)
Acquisition of 60000 sq mtr office space planned in the year ending
31.03.2011
Construction of Approx 100 houses in all 3 categories
Upgradation of the NADT &
State of the art infrastructure in one of the RTIs in the year ending 31.03.2011
Acquisition as a
% of target
No of Units
Constructed
No of upgradations
(NADT+RTI)
.6
.2
.2
85%*/** 80% 75% 70% 65%
Feb 15, 2011 Feb 28, 2011 March 15,
2011
March 31,
2011
Beyond
March
31, 2011
100% 90% 80% 70% 60%
Jan. 31, 2011 Feb 15, 2011
Dec 31, 2010 Jan. 15, 2011
Feb 28,
2011
Jan. 31,
2011
March 15,
2011
Feb 15,
2011
March
31, 2011
March
15, 2011
Jan. 31, 2011 Feb 15, 2011 Feb 28,
2011
March 15,
2011
March
31, 2011
Dec31, 2010 Jan. 15, 2011 Jan. 31,
2011
Feb 15,
2011
Feb 28,
2011
Feb 15, 2011 Feb 28, 2011
100% 90%
March 15,
2011
80%
March 31,
2011
70%
Beyond
March
31, 2011
60%
100%
85%
90%
80%
80%
75%
70%
70%
60%
65%
70 60 50 40
1+1
(NADT & at least 1 RTI)
1
(NADT only)
1
(RTI only)
NIL
30
NIL

*
The rating is considered as Excellent at 85% achievement of the target of disposal of appeals because the
Department is still to provide the requisite manpower/infrastructural support
.
**
This target will be reviewed in January 2011.
Note: As per Section V of the “Guidelines for Results-Framework Document (RFD) for April 1,
2010-March 31, 2011”, issued by the Cabinet Secretariat, Government of India (page-12, copy at
Annexure-I), each RFD must contain the following mandatory indicators, with 11%
combined weight, to promote enhanced and sustainable departmental performance levels:
1.
Efficient functioning of the RFD System (5% weight)
2.
(a) Timely submission of Draft for Approval (2% weight)
(b) Timely submission of Results (1% weight)
(c) Finalisation of a Strategic plan (2% weight)
Improving internal efficiency/responsiveness/service delivery of the Ministry/Department
(6% weight)
(a) Develop RFDs for all Responsibility Centers (subordinate offices/autonomous bodies etc) (2% weight)
(b) Implementation of Sevottam (4% weight)
It is stated that since the department is not among the Ministries/Departments included in the first phase for implementation of the system of monitoring and evaluation of performance and since the RFD concept is being voluntarily implemented in the CBDT with implementation being monitored by the Board itself, criteria at 1 (a)(b)(c) and 2 (a) above are not applicable for the year 2010-11, and shall become applicable only when the RFD concept is officially introduced.
Criterion 2(b) has already been comprehensively included at Objective-2 in Table-1 above.

Column 1
Objective
Column 3
Actions
Section-3
Table-2: Trend Value of the Success
Indicators
Column 4
Success Indicator Unit
Actual Value for FY 08/09
Objective1 : Collection of Income Tax &
Corporate tax as a significant & growing portion of the Govt’s revenue receipts
Net Collection during the year Net Collection during the year as a % of the budget targets
Rs in crores
(% of the budget targets )
Objective 2:
Implementation of
Sevottam Compliant
Citizen’s Charter &
Public Grievance
Redress Mechanism
Objective 3: Speedy
Disposal of Pending
Income Tax Appeals
Recovery of Arrear Demand
Collection of Tax from Tax
Deducted at Source (TDS)
Create a Sevottam Compliant system to implement, monitor & review Citizen’s Charter
Create a Sevottam Compliant system to redress & monitor Public
Grievances
Independent Audit of
Implementation of Citizen’s
Charter
Independent Audit of
Implementation of Public
Grievance Redress System
Cash collection as a
% the arrear demand
TDS Collection during the year (% of
Total Collections)
Rs in crores
(% of the budget targets )
Rs in crores
(% of the total collections )
Completion of Activity Completion of
Activity for 3 ASK
(Aayakar Sampark
Kendras) centres & replication for 10 others
Completion of Activity Completion of
Activity for 3 ASK
(Aayakar Sampark
Independent Rating of
Implementation of
Citizen’s charter
Kendras) centres & replication for 10 others
Rating score by the
Independent agency, as per the Sevottam evaluation methodology
Independent Rating of
Implementation of
Public Grievance
Redress Mechanism
Rating score by the
Independent agency, as per the Sevottam evaluation methodology
Disposal of pending (as on
1.4.2010) High demand appeals
(involving disputed demand of Rs
10 lakh or above)
No. of Basket 1 Appeals disposed
No. of disposals
333828
(98% of
Target)
10016
(81% of
Target)
133000
(39.3%)
##
##
##
##
15701
Actual
Value for
FY 09/10
377982
(98% of
Target)
11939
(91% of
Target)
143319
(38%)
##
##
##
##
14411
Column 6
Target Value for FY 10/11
Projected Value for FY 11/12
Projected Value for FY 12/13
430000
13906
172000
(40%)
March 31,
2011
March 31,
2011
100%
100%
38373
To be decided on
1.04.2011, in the
Union Budget
2011-12
To be decided on
1.04.2011
To be decided on
1.04.2011
@
To be decided on
1.04.2011, in the
Union Budget
2012-13
To be decided on
1.04.2012
To be decided on
1.04.2012
@
@
100%
100%
@
100%
100%
To be decided on
1.04.2011
To be decided on
1.04.2012
Disposal of Income tax appeals other than HD appeals
No. of Basket 2 &
Basket 3 Appeals disposed
No. of disposals 50650 51926 57914 To be decided on
1.04.2011
To be decided on
1.04.2012

Objective 4:
Efficient Manpower
Management & HRD
Setting up of a Human Resource
Information System (HRIS)
Follow up of the Cadre review of the Income Tax Department
Identifying the parameters for HRIS, formulation of preliminary estimates and obtaining govt sanction for expenditure
Providing required clarifications on queries by other departments within 2 weeks
Preparation of regionwise deployment plan
Completion of activity, by date
% of timely replies
Completion of activity, by date
##
##
Objective 5: State of the art infrastructure to make efficient delivery system & pleasant environment for tax payers & administrators
Removing workforce shortage
Revision of recruitment rules
Report of Task Force for recommending ways to overcome endemic shortage in the cadre of
Stenographers & approval thereof
Approval of setting up of Alternative
Advanced Mid Career Training
Scheme for IRS officers
Recruitment Machinery for special drive to overcome workforce shortage
Designing of course contents, selection of partner institutions & finalisation of training calendar & Selection of participants
Commencement of training
Resolving Service related disputes Setting up a dispute resolution machinery for examination of individual cases
Submission of revised recruitment rules by
31.3.2011
Acquisition of Office space Acquisition of 60000 sq mtr office space
Construction of residential units for officials of the department (Type
IV, V & VI)
Construction of Approx
100 houses in all 3 categories
Completion of activity, by date
Completion of activity, by date
Submission of reports after examination of cases referred by the
CBDT (%)
% of employee categories covered
Acquisition as a % of target
No of Units
Constructed
##
##
##
##
38467 sq mtr
142
Upgradation of training infrastructure of the department
(NADT & RTIs)
Upgradation of the
NADT & State of the art infrastructure in one of the RTIs
No of upgradations
(NADT+RTI)
##
##
##
##
##
##
Construction of hostel at
NADT for officers at a cost of Rs
24.10 cr
Feb 15, 2011
100%
@
100%
@
@
Dec31, 2011
Feb 15, 2012
100%
@
Modernisation of
NADT &
Bangalore RTI; land for Mohali
RTI**
State of the art infrastructure in one of the RTIs
@
@
@
Feb 15, 2013
100%
@
100%
Dec31, 2012
87396 sq mtr 60,000 sq mtr
(76% acquired so far)*
Approx 60,000 sq mtr
Approx 60,000 sq mtr
21
Feb 15, 2011
100%
Jan. 31, 2011
Dec 31, 2010
Jan. 31, 2011
Dec31, 2010
100%
30 till now 100 100
State of the art infrastructure in one of the RTIs

## New activity/activities e.g. Sevottam is a new scheme, introduced only w.e.f. 2010-11
@ One time activity/activities
* In addition, 1 lakh sq ft each is targeted to be acquired at Pune & Manesar for CPC **1.Advance
Training Centre at NADT ; 2. Acquired land at Mohali to construct RTI; 3. Latest Audio-Visual
Equipments for conference Room at RTI Bangalore at Rs 2 cr

All the success indicators are self-explanatory and data on Success
Indicators are to be captured either internally in the Board or obtained from the various Directorates like the DG(Admn), DG(HRD),
Directorate of Infrastructure, DO&MS, etc.

Department(s) from whom support needed needed
IFU of the Deptt. of Revenue; Deptt of Expenditure:
Type of Support
For Infrastructure related objectives/actions
Approval of
Infrastructure Plans and financial sanction of the project expenditure
Ministry of Urban development Funds release via
CPWD for ensuring timely execution of the Infrastructure projects to be executed through
CPWD & for timely concurrence under the FR/SR for
Infrastructure projects to be executed through private contractors
DOPT, Deptt of Expenditure, UPSC and SSC: For HRD related objectives/actions i.e. Support in respect of cadre review, amendment of recruitment rules, reducing manpower shortages, timely filling up the posts of various cadres

and timely DPCs for promotions in the
Department

Page 1 of 15
G
D
R
-F
D
(RFD)
R
C
(RC
)
April 1, 2012 – March 31, 2013
Performance Management Division
C
S
Page 2 of 15
G
R
-F
D
(RFD) 2012-2013
R
C
(RC
)
The Prime Minister approved the outline of a “Performance Monitoring and Evaluation
System (PMES) for Government Departments” vide PMO I.D. No. 1331721/PMO/2009-Pol dated 11.9.2009. Under PMES, each department is required to prepare a Results-Framework
Document (RFD).
A RFD provides a summary of the most important results that a organization expects to achieve during the financial year. This document has two main purposes: (a) move the focus of the organization from process-orientation to results-orientation, and (b) provide an objective and fair basis to evaluate organization ’s overall performance at the end of the year.
The following Guidelines are divided into three broad sections: (I) Format of RFD; (II)
Methodology for Evaluation; and (III) RFD Process and Timelines
A Results-Framework Document (RFD) is essentially a record of understanding between a
Department/Ministry representing the people’s mandate, and the Head of the organisation responsible for implementing this mandate. This document contains not only the agreed objectives, policies, programs and projects but also success indicators and targets to measure progress in implementing them. To ensure the successful implementation of agreed actions,
RFD may also include necessary operational autonomy.
In the case of the Responsibility Centres (attached offices, subordinate offices, and autonomous organizations), the RFD will represent a record of understanding between the parent department / ministry and the Responsibility Centre.
The RFD seeks to address three basic questions: (a) What are organisation’s main objectives for the year? (b) What actions are proposed to achieve these objectives? (c) How would someone know at the end of the year the degree of progress made in implementing these actions? That is, what are the relevant success indicators and their targets?
The RFD should contain the following five sections:
Section 1 Organisation’s Vision, Mission, Objectives and Functions.
Section 2 Inter se priorities among key objectives, success indicators and targets.
Section 3 Trend values of the success indicators.
Section 4 Description and definition of success indicators and proposed measurement methodology.

Section 5 Specific performance requirements from other departments/organisations that are critical for delivering agreed results.
Page 3 of 15
Organisation’s Vision, Mission, Objectives and Functions
This section provides the context and the background for the Results-Framework Document.
Creating a Vision and Mission for an organisation is a significant enterprise. Ideally, Vision and Mission should be a by-product of a strategic planning exercise undertaken by the organization. Both concepts are interrelated and much has been written about them in management literature. Here we will provide some working guidelines to write this section of the RFD.
A Vision is an idealized state for the organisation. It is the big picture of what the leadership wants the organisation to look like in the future.
The organization’s M ission is the nuts and bolts of the vision. Mission is the who, what and why of the organisation existence.
Vision is a symbol, and a cause to which we want to bond the stakeholders, (mostly employees and sometime other stake-holders). As they say, the people work best, when they are working for a cause, than for a goal. Vision provides them that cause.
Vision is a long-term statement and typically generic and grand. Therefore a vision statement does not change from year to year unless the organisation is dramatically restructured and is expected to undertake very different tasks in the future.
Vision should never carry the 'how' part of vision. For example ' To be the most admired brand in Aviation Industry' is a fine vision statement, which can be spoiled by extending it to'
To be the most admired brand in the Aviation Industry by providing world-class in-flight services'. The reason for not including 'how' is that the 'how' part of the vision may keep on changing with time.
Writing up a Vision statement is not difficult. The problem is to make employees engaged with it. Many a time, terms like vision, mission and strategy become more a subject of scorn than being looked up-to. This is primarily because leaders may not be able to make a connection between the vision/mission and people’s every day work. Too often, employees see a gap between the vision, mission and their goals and priorities. Even if there is a valid/tactical reason for this mismatch, it is not explained. The leadership of the organisation should therefore consult a wide cross section and come up with a Vision that can be owned by the employees of the organisation.
Vision should have a time horizon of 5-10 years. If it is less than that, it becomes tactical. If it has a horizon of 20+ years (say), it becomes difficult for the strategy to relate to the vision.
Features of a good vision statement:
Easy to read and understand.
Compact and crisp to leave something to people’s imagination.
Gives the destination and not the road-map.
Is meaningful and not too open ended and far-fetched.
Excites people and makes them feel energized.
Provides a motivating force, even in hard times.
Page 4 of 15
Is perceived as achievable and at the same time is challenging and compelling, stretching us beyond what is comfortable.
The entire process starting from the Vision down to the objectives is highly iterative. The question is from where we should start? We strongly recommend that vision and mission statement should be made first without being colored by constraints, capabilities and

environment. It is akin to the vision of several armed forces: 'Keeping the country Safe and
Secure from external threats'. This vision is non-negotiable and it drives the organization to find ways and means to achieve their vision, by overcoming constraints on capabilities and resources. Vision should be a stake in the ground, a position, a dream, which should be prudent, but should be non-negotiable barring few rare circumstances.
Mission follows the Vision:
We strongly recommend that mission should follow the vision. This is because the purpose of the organization could change to achieve their vision. Organisation’s mission is the nuts and bolts of the vision. Mission is the who, what and why of your organisation’s existence. The vision represents the big picture and the mission represents the necessary work.
Mission of the organisation is the purpose for which the organisation (or RC) exists. It is in one way the road to achieve the vision.
Objectives:
Objectives represent the developmental requirements to be achieved by the organisation in a particular sector by a selected set of policies and programmes over a specific period of time
(short-medium-long). For example, objectives of the Ministry of Health & Family Welfare could include: (a) reducing the rate of infant mortality for children below five years; and (b) reducing the rate of maternity death by (30%) by the end of the development plan.
Objectives could be of two types: (a) Outcome Objectives address ends to achieved, and (b)
Process Objectives specify the means to achieve the objectives. As far as possible, the organisation should focus on Outcome Objectives.
Objectives should be directly related to attainment and support of the relevant national objectives stated in the relevant Five Year Plan, National Flagship Schemes, and relevant sector and organisational priorities and strategies, President’s Address, the manifesto, and announcement/agenda as spelt out by the Government from time to time.
Objectives should be linked and derived from the Organisation’s Vision and Mission statements.
The functions of the organisation should also be listed in this section. These functions should be consistent with the allocation of business for the organisation.
Page 5 of 15
Inter se priorities among key objectives, success indicators and targets.
The heart of the Section 2 of the RFD document consists of the Table 1. In what follows we describe the guidelines for each column of this Table.
Column 1: Select Key Organisation Objectives
From the list of all objectives, select those key objectives that would be the focus for the current RFD. It is important to be selective and focus on the most important and relevant objectives only.
Table 1: Format of the Results-Framework Document (RFD)
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6
Objective Weight Actions Success
Indicator Unit Weight
Target / Criteria Value
Excellent Very
Good
Good Fair Poor
100% 90% 80% 70% 60%
Objective 1
Action 1
Action 2

Action 3
Objective 2
Action 1
Action 2
Action 3
Objective 3
Action 1
Action 2
Action 3
Column 2: Assign Relative Weights to Objectives
Objectives in the RFD should be ranked in a descending order of priority according to the degree of significance and specific weights should be attached to these objectives. The Head of the organisation will decide the inter se priorities among organisational objectives and all weights must add to 100.
Column 3: Specify Means (Actions) for Achieving Organisation Objectives
For each objective, the organisation must specify the required policies, programmes, schemes and projects. Often, an objective has one or more policies associated with it. Objective represents the desired “end” and associated policies, programs and projects represent the desired “means.” The latter are listed as “actions” under each objective.
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Column 4: Specify Success Indicators
For each of the “action” specified in Column 3, the organization must specify one or more
“success indicators.” They are also known as “Key Performance Indicators (KPIs)” or “Key
Result Areas (KRAs)” A success indicator provides a means to evaluate progress in achieving the policy, programme, scheme and project. Sometimes more than one success indicator may be required to tell the entire story.
Success indicators are important management tools for driving improvements in organisation performance. They should represent the main business of the organization and should also aid accountability. If there are multiple actions associated with an objective, the weight assigned to a particular objective should be spread across the relevant success indicators.
Success indicators should consider both qualitative and quantitative aspects of organisation performance.
In selecting success indicators, any duplication should be avoided. For example, the usual chain for delivering results and performance is depicted in Figure 1. An example of this results chain is depicted in Figure 2.
If we use Outcome (increased literacy) as a success indicator, then it would be duplicative to also use inputs and activities as additional success indicators.
Ideally, one should have success indicators that measure Outcomes and Impacts. However, sometimes due to lack of data one is able to only measure activities or output.
Column 5: Assign relative Weights to Success Indicators
If we have more than one action associated with an objective, each action should have one or more success indicators to measure progress in implementing these actions. In this case we will need to split the weight for the objective among various success indicators associated with the objective.
Results-Based Management:
Adult Literacy
Outcomes
•
Increased literacy skill; more employment opportunities
Outputs
•
Number of adults completing literacy courses
Activities
•
Literacy training courses

Inputs
•
Facilities, trainers, materials
Goal
(Impacts)
•
Higher income levels; increase access to higher skill jobs
Results-Based Management
Outcomes
•
Intermediate effects of outputs on clients
Outputs
•
Products and services produced
Activities
•
Tasks personnel undertake to transform inputs to outputs
Inputs
•
Financial, human, and material resources
Goal
(Impacts)
•
Long-term, widespread improvement in society
Implementation Results
Figure 2: An Example Figure 1: Typical Results Chain of Results Chain
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Column 6: Specify Targets for Success Indicators
The next step is to choose a target for each success indicator. Targets are tools for driving performance improvements. Target levels should, therefore, contain an element of stretch and ambition. However, they must also be achievable. It is possible that targets for radical improvement may generate a level of discomfort associated with change, but excessively demanding or unrealistic targets may have a longer-term demoralizing effect.
The target should be presented as the following five-point scale
Excellent Very Good Good Fair Poor
100 % 90% 80% 70 % 60 %
It is expected that budgetary targets would be placed at 90% (Very Good). For any performance below 60%, the organization would get a score of 0%.
Trend values of the success indicators
For every success indicator and the corresponding target, RFD must provide actual values for the past two years and also projected values for two years in the future.
Table 2: Trend Value for Success Indicators
Objective Actions Success
Indicator Unit
Actual
Value for
FY
10/11
Actual
Value for
FY
11/12
Target
Value for
FY
12/13

Projected
Value for
FY 13/14
Projected
Value for
FY 14/15
Objective
1
Action 1
Action 2
Action 3
Objective
2
Action 1
Action 2
Action 3
Objective
3
Action 1
Action 2
Action 3
Page 8 of 15
Description and definition of success indicators and proposed measurement methodology.
RFD must contain a section giving detailed definitions of various success indicators and the proposed measurement methodology. Wherever possible, the rationale for using the proposed success indicators may be provided.
Specific performance requirements from other agencies that are critical for delivering agreed results.
This section should contain expectations from other agencies that impact on the organisation’s performance. These expectations should be mentioned in quantifiable, specific, and measurable terms.
Outcome / Impact of activities of organisation
This section should contain the broad outcomes and the expect impact the organisation (or
RC) has on national welfare. This section should capture the very purpose for which the organisation / RC exits.
This section is included for information only and to keep reminded us not only the purpose of the existence of the organisation / RC but also the rationale for undertaking the RFD exercise.
The evaluation will be done against the targets mentioned in Section 2. The whole point of
RFD is to ensure that RCs ( organisations) serve the purpose for which they were created in the first place.
The required information under this section should be entered in Table 3. The Column 2 of
Table 3 is supposed to list the expected outcomes and impacts. It is possible that these are also mentioned in the other sections of the RFD. Even then they should be mentioned here for clarity and ease of reference. For example, the purpose of Department of AIDS Control

would be to Control the spread of AIDS. Now it is possible that AIDS control may require collaboration between several departments like Health and Family Welfare, Information and
Broadcasting, etc. In Column three all departments / ministries / RCs jointly responsible for achieving national goal are required to be mentioned. In Column 4 organization is expect to mention the success indicator (s) to measure the organizational outcome or impact. In the case mentioned, the success indicator could be 5 of Indians infected with AIDS. Column 5 to
9 give the expected trend values for various success indicators.
Page 9 of 15
Section 6: Outcome / Impact of activities of organisation
1 2 3 4 5 6 7 8 9
S.
No
Outcome / Impact of organisation /RC
Jointly responsible for influencing this outcome / impact with the following organisation (s) / departments/ministry(ies)
Success
Indicator
(s)
2010-
2011
2011-
2012
2012-
2013
2013-
2014
2014-
2015
Page 10 of 15
At the end of the year, the parent department/ministry will look at the achievements of the organisation, compare them with the targets, and determine the composite score. Table 4 provides an example from the health sector. For simplicity, we have taken on one objective to illustrate the evaluation methodology.
The Raw Score for Achievement in Column 6 of Table 4 is obtained by comparing the achievement with the agreed target values. For example, the achievement for first success indicator (% increase in primary health care centers) is 15 %. This achievement is between
80 % (Good) and 70 % (Fair) and hence the “Raw Score is” 75%.
The Weighted Raw Score for Achievement in Column 6 is obtained by multiplying the Raw
Score with the relative weights. Thus for the first success indicator, the Weighted Raw Score is obtained by multiplying 75% by .50. This gives us a weighted score of 37.5%
Finally, the Composite Score is calculated by adding up all the weighted Raw Scores for achievements. In Table 4, the Composite Score is calculated to be 84.5.
The composite score shows the degree to which the organisation in question was able to meet

its objective. The fact that it got a score of 84.5 % in our hypothetical example implies that the organisation’s performance vis-à-vis this objective was rated as “Very Good.”
The methodology outlined above is transcendental in its application. Various agencies will have a diverse set of objectives and corresponding success indicators. Yet, at the end of the year every organisation will be able to compute its Composite Score for the past year. This
Composite Score will reflect the degree to which the organisation was able to achieve the promised results.
Organizational Rating for RC Value of Composite Score
Excellent = 100% - 96%
Very Good = 95% - 86%
Good = 85 – 76%
Fair = 75% - 66%
Poor = 65% and below
Page 11 of 15
Table 4: Example of Performance Evaluation at the End of the Year
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6
Objective Action Criteria /
Success Indicators Unit Weight
Target / Criteria Values
Achievement Raw
Score
Weighted
Raw
Score
Excellent Very
Good Good Fair Poor
100% 90% 80% 70% 60%
Better Rural
Health
Improve
Access to
Primary
Health Care
1
% Increase in number of primary health care centers
% .50 30 25 20 10 5 15 75% 37.5%
2
% Increase in number of people with access to a primary health center within 20 KMs
% .30 20 18 16 14 12 18 90% 27%
3
Number of hospitals with ISO 9000 certification by

December 31, 2009
% .20 500 450 400 300 250 600 100% 20%
Composite Score = 8 4.5%
Page 12 of 15
A. Beginning of the Year
•
At the beginning of each financial year, with the approval of the
Department/Ministry/competent authority concerned, each Organisation will prepare a
Results-Framework Document (RFD) consistent with these guidelines.
•
To achieve results commensurate with the priorities listed in the RFD, the
Department/Ministry/competent authority in-charge will approve the proposed activities and schemes for the organisation. The Department/Ministry/competent authority will also approve the corresponding success indicators (Key Result Areas – KRAs or Key
Performance Indicators – KPIs) and time bound targets to measure progress in achieving these objectives.
•
Based on the proposed budgetary allocations for the year in question, the drafts of RFDs will be completed by 5 th of March every year in future. To ensure uniformity, consistency and coordinated action across various Responsibility Centers (RCs), the concerned administrative ministry / department will review these drafts and provide feedback to the Responsibility Centers concerned . This process needs to be completed by
March 31 of each year.
•
The final versions of all RFDs will be put up on the websites of the respective RCs by the
15 th of April each year.
•
The Final draft of Results-Framework Document (RFD) of each RC will be submitted to the concerned administrative ministry / department, by the 15 th
April of each year. It will take into account budget provisions and in particular the Outcome Budget. The Results-
Framework Documents will be drawn up in such manner that quarterly monitoring becomes possible.
B. During the Year
•
After six months, the Results-Framework as well as the achievements of each RC against the performance goals laid down at the beginning of the year, will be reviewed by the concerned administrative ministry / department. At this stage, the Results-Framework
Documents may have to be reviewed and the goals reset, taking into account the priorities at that point of time. This will enable to factor in unforeseen circumstances such as drought conditions, natural calamities or epidemics. Cabinet Secretariat will select RFDs of about 24 Responsibility Centres using a stratified random sampling procedure. These
RFDs for RCs will be examined by the members of the Ad-hoc Task Force (ATF) along with the RFDs for the parent department / ministry.
C. End of the Year
•
At the end of the year, all RCs will review and prepare a report listing the achievements of their respective organizations against the agreed results in the prescribed format. This report is required to be finalized by the 1 st of May each year.
Page 13 of 15
•
After scrutiny by the concerned administrative ministry / department, these results will be placed in the website of the respective RCs by 1 st of June each year.
WHEN WHAT WHO

2012
March 5
Submit final draft of Results-Framework
(RF) document to concerned administrative ministry / department
RCs
2013
May 1
Submit year-end evaluation report on progress during the year
RCs
June 1
Place the Evaluation result in the respective website
RCs
Page 14 of 15
Each RFD must contain the following mandatory indicators to promote enhanced and sustainable organisational performance levels.
Unit Weight
Target / Criteria Value
Excellent Very
Good
Good Fair Poor
100% 90% 80% 70% 60%
1 Efficient
Functioning of the RFD System
Timely submission of RFD for 2012-
13
On-time submission Date 2%
March 5
2012
March 8
2012
March 9
2012
March 10
2012
March 11
2012
Timely submission of Results for
2012-13
On-time submission Date 1%
May 1

2013
May 2
2013
May3
2013
May 4
2013
May 5
2013
Finalize a Strategic Plan for RC
Finalize the
Strategic Plan for next 5 years
Date 2% Dec. 10
2012
Dec. 15
2012
Dec. 20
2012
Dec. 24
2012
Dec. 31
2012
Identify potential areas of corruption related to organisation activities and develop an action plan to mitigate them
Finalize an action plan to mitigate potential areas of corruption.
%
2% Dec. 10
2012
Dec. 15
2012
Dec. 20
2012
Dec. 24
2012
Dec. 31
2012
Implementation of Sevottam
Create a Sevottam compliant system to implement, monitor and review
Citizen’s Charter

Date 2% Dec. 10
2012
Dec. 15
2012
Dec. 20
2012
Dec. 24
2012
Dec. 31
2012
Create a Sevottam
Compliant system to redress and monitor public
Date 2%
Dec. 10
2012
Dec. 15
2012
Dec. 20
2012
Dec. 24
2012
Dec. 31
2012
Page 15 of 15
Unit Weight
Target / Criteria Value
Excellent Very
Good
Good Fair Poor
100% 90% 80% 70% 60%
Grievances
TOTAL WEIGHT= 11%
Page 16 of 15
For examples and background material on the Performance Monitoring and
Evaluation System , please visit our website: www.performance.gov.in
All RFDs must be submitted to the administrative ministry / department concerned, by 5:30 PM on Monday, March 5, 2012.
Please refer all enquires relating to these guidelines to:
Shri S.B.Mandal
Deputy Secretary
Performance Management Division
Janpath Hotel
Cabinet Secretariat
New Delhi 110001

Email: helpdesk-rfd@nic.in
, sb.mondal@nic.in
Phone: 011-23741164

Chapter 1 Introduction 1
Chapter 2 Vision, Mission and Values 3
Chapter 3 Challenges & Opportunities in the New Decade 5
Chapter 4 Strategic Plan 12
4.1 Objective: To formulate progressive tax policy 12
4.2 Objective: To provide efficient and effective administration 14
4.3 Objective: To Promote Voluntary Compliance 24
Chapter 5 Conclusions 29
T
of
C
1.1 Direct taxes, now the major source of tax revenues to the central government, have grown at an average annual rate of 24% in the last five years and have nearly trebled from ` 1,32,771
Crore in 2004-05 to about
` 3,78,000 Crore in 2009-10.
The contribution of Direct Taxes to the Central Tax Revenues has grown from 43.79% to 60.5% during the same period. The ratio of direct taxes has increased from 4.1% of GDP in 2004-05 to
6.1% in 2009-10. The Thirteenth
Finance Commission (2010-15) has projected direct tax revenue collection at ` 8,29,668 Crore by 2014-15 and direct tax to GDP ratio of 7.62%.
1.2 The vision of the Income Tax Department (ITD) is to be a partner in the nation building process through progressive tax policy, efficient and effective tax administration and improved voluntary compliance. This will be achieved by an enabling policy environment and augmenting the revenue mobilisation apparatus for optimum revenue collection under the law, while maintaining taxpayer confidence in the system.
1.3 The strategic planning for this purpose will have to be done in dynamic settings taking into account external challenges & opportunities and internal strengths & constraints. This document states the Vision 2020 and a strategic plan covering the five year period 2011-15. A mid-term review of the implementation of the plan will be done in 2013. The Strategic Plan itself will be reviewed in 2014 to evaluate
1
Customs, Union Others
Excise & Service Tax
Personal Income Tax Corporate Tax

1%
21%
39.5%
38.5%
Break-up of the Tax Revenue of
Central Government
V i s i o n 2 0 2 0 the effectiveness of the initiatives taken, requirement for course correction and the need, if any, for new initiatives in the next five years.
1.4 Vision 2020 spells out the Vision, Mission and
Values of ITD in Chapter 2. Analysis of major challenges confronting the ITD and various opportunities likely to be thrown up by these challenges during the strategic plan period 2011-15, is contained in Chapter 3.
The Strategic Plan is discussed in Chapter 4. Finally, conclusions are drawn in Chapter 5.
2
2.2 The following Mission statement outlines the roadmap for the ITD to realise its vision:
To formulate progressive tax policies
To make compliance easy
To enforce tax laws with fairness
To deliver quality services
To continuously upgrade skills and build a professional and motivated workforce
2.3 Our Values will steer us through the journey towards realising our Vision and will be reflected in all our decision making processes.
Integrity “We discharge our duties truthfully, honestly and

transparently”
Accountability “We are responsible for our actions and outcomes”
Responsiveness “We are sensitive, prompt, fair and objective in our dealings with our stakeholders, fostering mutual trust”
Professionalism “We strive for improving performance and competence with a focus on achieving excellence”
Innovation “We encourage new ideas, methods, processes and practices”
Collaboration “We work together with our stakeholders and partners to achieve common goals”
V i s i o n 2 0 2 0
3.1 In an ever changing environment, ITD seeks to have a clear focus on its goals to be able to continually review its policies, operating approaches and procedures for being responsive and adaptive to the changing business and legislative environment. New technological development, accelerated globalisation, exchange of information between revenue authorities and the new Direct Tax Code offer both challenges and opportunities. ITD is poised to seize the opportunities and meet the challenges to realise its Vision through progressive tax policies, efficient
& effective administration and improved voluntary compliance. An understanding of the challenges and opportunities they throw up is the first step towards meeting the challenges. The challenges have accordingly been classified under the three enablers for realisation of vision.
3.2 P olicy
I ntervention
C hallenges
3.2.1 Developing Comprehensive Database of All ITD Data
The Challenge to formulate progressive tax policy is critically dependent on availability of reliable data on taxpayer compliance behavior, efficacy of various instruments used by the tax administration for improving compliance, possible opportunities for tax leakages, the revenue potential of the economy etc.
3.2.2 Developing Research Capabilities
Developing research capabilities to collect such data as a national database and mine and analyse the data is the challenge that needs to be addressed by ITD for moving towards a research driven tax administration.
3.2.3 Estimation of the Tax Base & Revenue Leakages
The starting point for the revenue optimisation effort would be to ascertain the potential tax base of the country and the extent of revenue leakages. Absence of a scientifically developed revenue forecasting model is a constraint that needs to be addressed.

3
V i s i o n 2 0 2 0
Estimation of the true revenue potential with a customised forecasting model will help ITD to quantify the gap between the potential revenue and the actual collection. A study on the extent of the revenue leakage with clear identification of the activities and the factors responsible for its growth will help ITD to optimise its revenue mobilisation.
3.2.4 Complexities in Tax Laws
Complexities in tax laws are regarded as one of the major impediments to voluntary compliance. A lot of effort has been made in the past decade to simplify the direct tax laws in the country. This effort needs to be continued in future also.
3.3 C hallenges for
E fficient
& E ffective
A dministration
3.3.1 Assessment and Reduction of
Compliance Risk
Complexity and innovation in business structures, new financial products, large number of taxpayers, growth in international trade supported by rapid expansion of e-commerce, commoditisation of tax avoidance schemes, are some of the factors leading to increased compliance risk for the tax administration. It may not be possible for ITD to address these risk factors through the traditional tools based on verification and enforcement action alone. ITD has to pay greater attention to understanding the factors that shape taxpayers’ compliance behaviour in order to craft and implement potentially more effective set of responses.
The challenge before the ITD is to identify and assess compliance risks, not only domestically but also internationally, on the basis of priorities identified with the help of a sound risk management system.
3.3.2 Human Capital Challenges
The human resource of ITD with over 57,793 employees is the strategic foundation of the ITD.

“
“
V i s i o n 2 0 2 0
Skilled and committed employees who are valued and treated equitably are more likely to be fair and professional in their dealings with taxpayers. Creating opportunities for development and advancement of careers is an instrument for developing an attractive work environment. The challenge is to motivate and equip each and every member of ITD to reach his or her unique and full potential.
In response to the changing business environment, increased complexity of tax administration and wor kload and tax payers’ expectations of service, ITD is on a transition path from a manual to an IT-enabled system. Traditional problem solving methods of working in isolation no longer work in a networked environment where cross-functional problem solving through collaboration is the new mantra. ITD intends to inculcate a culture of collaboration across functional areas for achieving the overall objective of the department.
There is an urgent need to upgrade the technical capabilities of the personnel to effectively perform their functions. The challenge before the ITD is to map the new skill sets required with the existing skill sets of the personnel and come up with a comprehensive plan to bridge the gap through targeted training. ITD has attracted and retained some of the best civil service talent in the country to man its managerial cadres. In the face of stiff competition for talent in the country, especially from the highly competitive private sector,
ITD cannot remain complacent on this score. ITD intends to provide a challenging and stimulating work environment for its personnel, where talented employees can realise their full potential, contribute to the growth of ITD and take pride in the public service ethos as members of the premier service of the government.
3.3.3 Development of Real Time knowledge
Sharing Mechanism
In a knowledge driven organisation like ITD, it is

imperative for its personnel to update their knowledge
“
“
V i s i o n 2 0 2 0 constantly. Knowledge connotes ability to understand the law and its myriad interpretations as well as ability to understand accounts. At another level, knowledge comprises the ability to detect evasion, devise strategies for improving compliance, improve internal efficiency and efficacy, compete globally to attract and retain multinational taxpayers. The challenge is to identify the requirements of knowledge by various functionaries of ITD, institutionalise the process of imparting and co-creation of knowledge, create an institutional memory and put in place a mechanism for real time sharing of knowledge by developing both formal & informal channels.
3.3.4 Technology Challenge a. Technology Transforming Rules of
Commerce
Advent of new technology poses both challenges and opportunities for ITD. Technology has changed the very basis of commerce. With rapid expansion of sophisticated computer and communications technology, taxpayers are finding innovative means to conceal economic transactions. This paradigm

shift in the very basis of commerce calls for a fundamental change in ITD’s conduct of its affairs. A fresh look has to be taken in various functional areas including investigations, taxpayer services, legal framework, skill sets of its personnel, placement of officers across international tax jurisdictions, making in-house technical support & expertise available and making changes in internal structure. The challenge is to outline a comprehensive Technology plan which addresses diverse issues relating to technology. Availability of new technology also offers an opportunity for ITD to adopt the same as the fulcrum around which the functioning of the entire organisation revolves in the new decade. The tax compliance process encompassing various stages is a chain. Seamless flow of information to each link in this chain through enabling technology will aid the
ITD personnel in making informed decisions.
“
“
V i s i o n 2 0 2 0 b. Explosion of Digital Data
The volume of data the ITD is handling today is huge as can be gauged from 270 million entries relating to tax deducted at source alone. This volume will

only grow manifold in the coming decade. Data pertaining to high value transactions received from third parties is worth ` 100 trillion today. The present day network, which operates on “Single Application
Single Database” model, is soon likely to be rendered inadequate. The challenge for the ITD is to develop computational capacity with facility for web computing.
3.3.5 Accelerating Globalisation
The administration of a tax code is much more complex in an open global economy. Taxpayers are more sensitive to differences in inflation, tax treatment, exchange rates, tax rates and the ability of tax administrations to monitor trade and income flows. Generation of income across the world poses a challenge to the ability of revenue authorities to verify the accuracy of taxpaye rs’ returns thereby increasing the risk of incidence of tax avoidance.
International tax advisors act in concert to put together complex structures spanning various jurisdictions taking advantage of the technology.
In this scenario, protection of tax base and collaboration amongst tax authorities becomes essential. The challenge before ITD is to take a leadership role in protecting the national tax base through concerted efforts and active participation in global fora.
3.3.6 Transition from 1961 Act to DTC
The introduction of the new Direct Taxes Code
(Bill), 2010 (DTC) in the Parliament is a landmark event in the history of 150 years of Income Tax in
India, posing both challenges and opportunities.
At an operational level, the transition from a fifty year old 1961 IT Act to the new DTC would

“
“
10 V i s i o n 2 0 2 0 require effective communication with the taxpayers through awareness programs about the new law.
Departmental personnel will also have to be trained on the new tax code.
The need to develop a new ITD software application package for the new code, making it compatible with the legacy system, training the departmental personnel in the new system within the shortest possible time, will be a challenge. At the same time, it offers an opportunity for the ITD to move to a fully automated technology-driven system on a single technology platform right from inception for fully integrating people, process and technology.
3.4 C hallenges for
I mproved
V oluntary
C ompliance
3.4.1 Removal of Barriers to Voluntary
Compliance
Promoting voluntary compliance is one of the prime concerns of ITD. Voluntary compliance is enhanced when taxpayers find it easier to comply with tax laws. The challenge before the ITD is to identify the barriers to voluntary compliance and take proactive steps to remove them by putting in place excellent public service delivery mechanism. ITD intends to be responsive and sensitive to the needs of all categories of taxpayers by segmenting taxpayers for crafting targeted facilitating packages after ascertaining the specific requirements.
3.4.2 Reduction in Compliance Cost
Tax compliance costs impose a burden on the taxpayers. If the amount is a big percentage of the tax payable, it deters small & medium taxpayers from being a part of the tax system. The challenge before the ITD is to ascertain the extent of compliance cost for different categories of taxpayers and develop focused programmes to reduce the compliance costs for improving voluntary compliance.

“
“
V i s i o n 2 0 2 0 11
3.4.3 Meeting Increasing Aspirations of
Taxpayers
The ITD has been rolling out various services to the taxpayers to make compliance easier for them. However, many of these services have not been optimally utilised by the taxpayers. There is a need to analyse the requirements of the taxpayers for developing a channel strategy for delivery of services.
3.4.4 Transition to an Era of E-governance
E-governance is viewed by ITD as strategic tool for transforming Governance and improving the quality of services provided to the taxpayers. It enables delivery of services as per the convenience of the taxpayers in a cost effective manner while ensuring accountability.
With the increase in Internet and mobile connection amongst the citizens in India, taxpayers look forward for a one stop solution from the ITD that can be accessed easily for getting a desired service. The challenge before the ITD is to set clear goals to meet the expectations of taxpayers with focus on outcomes.
ITD has to address the need for ‘Integrated Service
Delivery’ mechanisms cutting across functional areas of ITD. Integrating back office information processing systems with the Internet to provide an online

interface to the taxpayers is the key for transiting to an era of e-governance. However, the digital divide in the taxpayer population is to be kept in mind while planning for service delivery to the taxpayers who do not have access to the Internet.
3.4.5 Faster Resolution of Disputes
The rising litigation with the taxpayers and the quantum of revenue locked up in appeals is a matter of serious concern that requires attention. ITD intends to address this concern with comprehensive proposal for reducing unwarranted litigation with taxpayers, faster disposal of appeals and prompt redressal of grievances in a consistent manner.
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T hree strategic initiatives linked to the three enablers captured in the vision have been identified by ITD to meet various challenges outlined in Chapter 3 for realisation of its vision.
4.1. O bjective
: T o
F ormulate
P rogressive
T ax
P olicy
4.1.1 Estimating the Tax Base & Developing a Revenue Forecasting
Model
The first step for optimisation of revenue mobilisation is to ascertain the true tax base of the country. ITD intends to develop a revenue forecasting model by identifying the tax base and the variables influencing direct tax revenue from the perspective of tax administration. The existing revenue forecasting models used are conceptualised from a slightly different perspective without explicitly focusing on administrative aspect of tax policy. A customised model for ITD may identify and use variables affecting the compliance level explicitly, in addition to the GDP used as a proxy for the tax base.
Action Point: Constitute an expert group for developing a revenue forecasting model with departmental officers and outside experts including

economists, statisticians and other government agencies
Constitution of the Expert Group to be done before the end of the financial year 2010-11
4.1.2 Instituting Study on Plugging of Tax Leakages
In its optimisation effort, ITD has to ascertain evasion prone sectors of the economy; reasons for non-compliance; possible methods of tax avoidance and evasion; and measures to plug such tax leakages. To this end a study by a broad based group of experts coordinated by departmental officers will be carried out.
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V i s i o n 2 0 2 0 13
Action Point: Constitute an expert group for conducting a study on tax leakages and suggesting measures to plug such leakages with departmental officers and outside experts including economists, statisticians, other social scientists and other government agencies. Constitution of the Expert Group to be done before the end of the financial year
2010-11
4.1.3. Setting up of a Research Unit
Modern tax administrations all over the world make policy and administrative decisions based on scientific research. Following international best practice, ITD intends to set up a research unit.
Action Point 1: Set up a research unit having a multi-disciplinary team coordinating efforts on tax research as an ongoing program after ascertaining all the research requirements of ITD
Action Point 2: Set up Revenue Services Research
Institute with physical and digital library and dedicated bandwidth
Action Point 3: Make Revenue Services Research
Institute the nodal agency for conducting research on demand
Action Point 4: Make a multi-year commitment to research program to transform ITD into a research driven organisation
Action Point 5: Develop research-driven methods to detect non-compliance and other aspects of tax administration
Action Point 6: Encourage research by trainee

officers at National Academy of
Direct Taxes and officers pursuing study leave for inculcating a new culture of research-backed tax administration
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14 V i s i o n 2 0 2 0
Action Point 7: Bring all data of ITD under a single custodian for formulating progressive tax policy
4.2 O bjective
: T o
P rovide
E fficient and
E ffective
A dministration
4.2.1 Developing Data Warehouse &
Business Intelligence Solution
ITD intends to use innovative methods to supplement its traditional enforcement tools in order to reduce the tax gap during the strategic plan period 2011-15. A conscious effort will be made to move towards nonintrusive targeted enforcement tools.
Action Point 1: Make internal data available almost on real time basis by capturing data from Paper Returns immediately after receipt
Action Point 2: Make internal data robust and current by including information gathered during enforcement action by the Investigation Wing

and the Assessing Officers
Action Point 3: Make external information data base extensive by gradually expanding scope of AIR and securing access to data bases of financial and other institutions and establishments
Action Point 4: Build partnership across government agencies to gather and share information and work out uniform accounting / reporting practices
Action Point 5: Put all the functions relating to collection of information under one
Directorate
Action Point 6: Ensure that the work of Assessing
Officer and the Commissioner
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V i s i o n 2 0 2 0 15
(Appeals) is done online on the system
Action Point 7: Update and clean PAN database on a regular basis
Action Point 8: Consider modification of ITR forms to capture relevant information to facilitate matching of external information
Action Point 9: Bring all data of ITD under a single custodian for deploying effective data mining tools

Action Point 10: Ensure integrity / evidentiary value of digital data by following cyber forensic best practices
Action Point 11: Make standard operating practices
(SOP) in respect of cyber forensic best practices for acquiring, analysing and archiving digital data flowing into the system
Action Point 12: Upgrade current data mining and other initiatives for Data
Warehousing Solutions for developing Comprehensive
Business Intelligence for just in time enforcement capability
Action Point 13: Create a Directorate of Risk
Management for dedicated attention to management of risk
Action Point 14: Use Risk Management methodology to identify high risk taxpayers by continuously revising and enhancing case selection process
Action Point 15: Extend unit of risk assessment from individuals to group of taxpayers
Action Point 16: Make business intelligence available to the actual users almost on real time basis
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Action Point 17: Use IT-enabled tools to navigate through software accounting packages
4.2.2 Developing Mechanism for Monitoring
Tax-exempt Sector
The size and diversity of the tax exempt sector makes it incumbent for ITD to focus on compliance in this sector and also provide necessary guidance for ensuring compliance. ITD will continue to monitor the activities of this sector to ensure that tax forgone is well deserved.
Action Point 1: Develop a national data base of tax-exempt entities and list out their activities
Action Point 2: Extend facilities for timely registration of the tax-exempt entities
Action Point 3: Proactively address misuse of taxexempt status
4.2.3 Meeting the Challenges of
International Tax Administration

Proliferation of tax avoidance schemes across national borders due to advancement in technology, integrating world economy, mobile capital and mobile population etc. are posing a challenge to tax administrators across the world. Complex structuring of transactions by Multinational corporations makes it difficult for the tax authorities to comprehend the full impact unless regularly updated on various issues relating to tax laws across revenue jurisdictions.
In order to effectively meet the challenges brought about by increased globalisation and to protect its tax base, ITD needs to continue to raise skill levels of its personnel. It also has to play an increasing role in the international fora to shape international tax standards, to push for greater transparency and exchange of tax information in order to curb tax evasion and avoidance.
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V i s i o n 2 0 2 0 17
Action Point1: Expand knowledge base of employees on the latest trends in international taxation issues
Action Point 2: Capacity building in complex areas of transfer pricing and international taxation
Action Point 3: Enhance cooperation with the treaty partners and other international organisations and work towards raising its international profile

Action Point 4: Exchange and sharing of information with other tax administrations
Action Point 5: Set up overseas units for facilitating exchange of information
Action Point 6: Set up good administrative practices for quicker disposal of disputes through mutual agreement procedure
4.2.4 Ensuring Surveillance of Fund Flow that Impact the Physical and Economic
Security of the Country
The next decade will see an increased role of the ITD in scrutinising transactions and fund flow impacting national security and identifying money laundering, terror and narcotic funding. This will require the
ITD to deploy considerable resource and energy on criminal investigation. Effective criminal investigation will necessarily include a comprehensive international strategy to combat offshore tax evasion, and fund flows that threaten security of the country.
Action Point 1: To develop a robust system of criminal investigation with focus on fund flows that impact national security
Action Point 2: To develop an outreach program to sensitise stakeholders about economic and financial security
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Action Point 3: To keep tabs on fund flow relating to money laundering, narcotics and terror
Action Point 4: To ensure exemplary enforcement against abusive schemes and corporate tax frauds
4.2.5 Ensuring that Tax Practitioners and
Departmental Personnel Adhere to
Professional Standards
Recent exposures in India regarding manipulation of accounts by public corporations and failure of the public accountants to point them out have raised certain critical ethical issues. In the interest of the nation, it is important for the ITD to reiterate the importance of ethical standards in public life. The same ethical standards are to be followed by the departmental personnel as well.
Action Point 1: Administer effective system of sanctions for those who fail to follow the law
Action Point 2: Make departmental personnel

demonstrate exemplary ethical standards while implementing the tax laws
4.2.6 Developing a Tax Collection Strategy
The best possible revenue forecasting model cannot ensure that actual revenue mobilisation reaches the potential unless the collection machinery is geared up for this purpose. Demand is raised by the ITD as a result of assessments which is referred to as ‘regular demand’. Uncollected regular demand brought forward at the beginning of a financial year is termed as
‘arrear demand’. The brought forward arrear demand comprises of two components: (a) arrear out of fresh demand raised during the preceding financial year, and (b) arrear-out-of-arrear demand. As ITD improves and upgrades its assessment effort, the arrear-out-offresh demand component brought forward every year
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V i s i o n 2 0 2 0 19 is bound to go up. This is the healthy component of arrear demand which, after accounting for reductions due to appeals etc, yields revenue. It is the good debt stock or current asset of the Department. Thus, the growth of brought forward arrear demand, in-sofar as it represents growth in the annual rate of fresh demand, is a positive development, and has to be viewed as such.
Arrear-out-of-arrear demand component of the brought forward demand is the hard core arrear demand, most of which is in-collectible for various reasons. It is also bound to rise on account of the annual accretion of statutory interest, which the
Department is obliged to charge, because there is no

provision in law for not charging interest on bad or doubtful debts of tax.
ITD intends to put in place a detailed collection plan for improving efficiency and productivity in collections.
Action Point 1: Develop an annual collection plan that would set targets and time standards for both current and arrear demand to be collected on the following basis: a) Analysis of the nature of current and arrears demand to identify collection pattern b) Analysis of the tax records of taxpayers c) Use of risk scoring techniques to create risk profiles of debtors
Action Point 2: Improve communication to make taxpayers understand their obligations
Action Point 3: Develop effective procedures for writing off uncollectable tax arrears
Action Point 4: Include both pre-assessment and post assessment taxes in the demand analysis
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Action Point 5: Consider separation of assessment and collection function
4.2.7 Aligning HR Strategy to Goals
The strategic foundation of the tax administration is the human capital and optimal use of this resource is critical for realisation of the vision. A comprehensive
HR strategy covering all aspects of manpower planning and development has to be formulated with a strong structural support for Human Resource
Directorate.
Action Point 1: Conduct a detailed analysis of shortages of manpower and reasons thereof and come up with possible solutions
Action Point 2: Consider a separate recruitment board for expeditious recruitment of staff
Action Point 3: Expedite processing of cadre restructuring proposal and develop automatic mechanism for timely periodic evaluation
Action Point 4: Formulate a comprehensive
HR strategy encompassing all aspects of personnel requirements and development with a sound

structure for HR Directorate
Action Point 5: Match job requirements with skill sets of employees for placements by developing Human Resource
Information System (HRIS)
Action Point 6: Create motivational climate for employees to excel by designing a career progression path
Action Point 7: Reinforce a culture of crossfunctional problem solving approach through collaboration
Action Point 8: Encourage innovations at work
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V i s i o n 2 0 2 0 21
Action Point 9: Conduct training needs analysis and invest in high quality training for overall development of personnel
Action Point 10: Set up real time knowledge sharing mechanism for enhancing revenue productivity
Action Point 11: Conduct an employee satisfaction survey through an independent agency for ascertaining satisfaction level of departmental employees
4.2.8 Strategic Technology Initiative
1. Developing Strategic Technology Plan
ITD intends to outline a comprehensive Technology plan to address the diverse issues relating to technology

Action Point 1: Formulate Strategic Technology
Plan
Action Point 2: Make provision for a robust
Management Information System
(MIS) for effective decision making and reducing reporting requirements by personnel
Action Point 3: Augment computational capacity and network connectivity for handling huge data volumes in an environment of dynamic computing paradigms
Action Point 4: Plan to remain cost effective and avoid technology obsolescence
Action Point 5: Resolve multiplicity of platforms in favor of uniform holistic rulebased application matrix that can optimally run on the state of the art hardware and networks
Action Point 6: Integrate all the elements of tax collection process through
22 V i s i o n 2 0 2 0 technology with information seamlessly flowing to the users for informed decision making
Action Point 7: Ensure security of all information assets and database through a systemic implementation of periodic vulnerability testing, security & forensic audits to prevent frauds
Action Point 8: Create a single data center under a single custodian for storing all taxpayer and third party data
Action Point 9: Make business intelligence out of processed data and make it available to the actual users almost on real time basis
Action Point 10: Upgrade skills of the ITD personnel on a continuous basis
Action Point 11: Develop a mechanism of knowledge sharing on real time basis within ITD
Action Point 12: Plan to reduce carbon footprint through green technology
Action Point 13: Devise a detailed transition plan for e-governance initiatives
Action Point 14: Consider setting up of Special
Purpose Vehicle for quick and effective response to the

Technology challenge
2. Developing Integrated Technology
Platform: Making the transition for
New DTC Smooth
The new DTC is likely to replace the 50 year old
Income Tax Act with effect from April 2012. It offers an opportunity for ITD to integrate its people, process and technology through an integrated technology platform.
V i s i o n 2 0 2 0 23
Action Point 1: Prepare for the transition with a detailed outreach program both for the taxpayers and departmental personnel
Action Point 2: Make use of the opportunity to move towards a fully automated technology-driven system
Action Point 3: Integrate the compliance process chain through a common technology platform
4.2.9 Real Time Knowledge Management
The challenge for creating an institutional memory for
ITD commences with identification of the requirements of knowledge by various functionaries of ITD and sources of knowledge. This has to be followed by institutionalisation of the process of co-creation of knowledge, and putting in place a mechanism for real time sharing through formal & informal channels.
Framing of Quality Assessments after making quality investigations is considered the primary deterrent against tax evasion.
1. Ascertaining Knowledge Requirements of ITD
To develop consistency in interpretation of law is in the larger interest of ITD for reducing litigation and enhancing revenue productivity. As a first step, knowledge gap prevailing in the Department will be identified and knowledge requirements across various functional areas will be ascertained.
Action Point 1: Identify knowledge gap and ascertain knowledge requirements across functional areas of ITD
Action Point 2: Identify sources of knowledge creation
Action Point 3: Encourage the process of cocreation
Action Point 4: Develop institutional memory

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24 V i s i o n 2 0 2 0
2. Developing Mechanism for Real Time
Knowledge Sharing
“Let us Share – A compilation of Best Practices and
Orders” is the current institutional mechanism for sharing of knowledge within ITD. The scope of this effort will be expanded to evolve into an online real time knowledge sharing mechanism.
Action Point 1: Provide facility for online learning management system with facility for transmitting and storing webcasts and VOIP
Action Point 2: Set up online discussion forum to discuss issues relating to tax administration
Action Point 3: Set up mechanism of knowledge sharing through formal & informal channel
Action Point 4: Provide for corporate subscription of judicial referencing system and economic data bases
4.3 O bjective
: T o
P romote
V oluntary
C ompliance
4.3.1 Incorporating Taxpayer Perspectives to
Improve Service Delivery
ITD intends to take proactive steps to better understand compliance issues from the perspective of taxpayers by taking the following action steps.
Action Point 1: Take operational decisions after incorporating the views of the affected parties
Action Point 2: Facilitate participation in the tax system by all segments of taxpayers
Action Point 3: Institute a study on barriers

to compliance as an ongoing programme
V i s i o n 2 0 2 0 25
Action Point 4: Institute a study on compliance cost of different categories of taxpayers on a periodic basis
4.3.2 Create a Channel Strategy for
Taxpayer Services
Lack of awareness about tax laws and non-availability of taxpayer services in multiple channels in which different segments of taxpayers are comfortable may also result in non-compliance from small and medium taxpayers. It is important that the taxpayer’s behavior is properly studied before designing a suitable channel mix for providing informative, interactive and transactional services to the taxpayers.
Action Point: Segmentation of taxpayers to develop appropriate channel strategy for communication and for providing targeted and timely guidance
4.3.3 Single Window Facility for Taxpayers
The Citizens’ Charter 2010 of ITD contains the current standards of service delivery promised by the ITD of its key services to the taxpayers. The implementation of the
Charter is being done through Aayakar Seva Kendra
(ASK), a single window facility for taxpayers for filing all applications for services & redressal of grievances including paper returns. Unique acknowledgment number is issued against each application to facilitate monitoring of status during the life cycle of an application/return. ASK is the front office of ITD supported by the intranet of the Department, with standardised design and a brand identity of its own, guided by the philosophy of “Sevottam” ( Excellence in
Service Delivery ). Currently operating at 3 buildings at Pune, Kochi and Chandigarh on a pilot basis, ASK will be made operational at all the buildings of ITD in a phased manner during the strategic plan period
2011-15. The quality policy of the ITD contained in its Service Quality Manual 2010, promises that ASK will be made compliant to IS: 15700:2005; the only

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26 V i s i o n 2 0 2 0 standards for excellence in public service delivery for public service organisations.
Action Point 1: Display Citizen’s Charter of ITD prominently at all buildings of ITD and monitor implementation of
Citizen’s charter
Action Point 2: Communicate service standards contained in the Citizen’s charter to all taxpayers through different channels
Action Point 3: Build capacity to meet the service standards by developing integrated service delivery mechanism cutting across functional areas of ITD.
Make ASK the flagship project of ITD for excellence in taxpayer service delivery
Action Point 4: Implement scientific record management for improving service delivery
Action Point 5: Develop a mechanism for taking feedback from taxpayers and conduct periodic surveys through independent agencies to measure taxpayer satisfaction
Action Point 6: Expand the bundle of services to be provided at ASK by providing facilities for online filing of applications including grievances, acknowledging all applications from taxpayers on real time basis, providing facility for online checking of status of all applications and making all relevant information materials available to taxpayers online
Action Point 7: Set up Integrated Call Centre facility to check status of

applications filed at ASK centers across the country
V i s i o n 2 0 2 0 27
Action Point 8: Set up ASK at all buildings of ITD on fast track
Action Point 9: Make all ASK centers of excellence and IS: 15700 compliant
Action Point 10: Develop FAQs centrally for use across the country
4.4.4 Strengthening Partnership With Tax
Practitioners; Tax Deductors; and Third
Party Partners
A vast majority of taxpayers interact with the ITD through the tax practitioners who play a critical role in the compliance process at different stages. To improve the quality of service to the ultimate taxpayers, ITD intends to maintain centralised contact with both tax practitioners and business associations for bridging knowledge gap.
There are also a large number of third party partners of
ITD who act as agents by collecting taxes on its behalf and depositing them within a stipulated period. This group is diverse and has differing levels of tax literacy and ability to access technology. ITD intends to organise outreach program to extend support to these partners.
A large number of agencies furnish third party information to the Department which forms the basic data for conversion into actionable intelligence.
ITD intends to collaborate with such partners with meaningful dialogue and education programs
Action Point 1: Constitute central and zonal Direct
Tax Advisory Councils and make these fora effective through regular interaction
Action Point 2: Disseminate information through tax practioners and extend services to them
Action Point 3: Strengthen partnership with tax deductors with proper handholding and education programmes
28 V i s i o n 2 0 2 0
Action Point 4: Strengthen partnership with third party information providers with guidance
Action Point 5: Devise standardised format for supply of third party data and create facility for electronic submission of data
4.4.5 Litigation Management
Delay in resolution of tax disputes adversely affects

voluntary compliance. Protracted litigation results in wasteful expenditure of time and resources for both taxpayer and the Department. A systemic approach to resolve disputes would be a win-win situation both for the ITD and the taxpayers. ITD intends to put in place a mechanism for putting an end of unproductive litigation.
Action Point 1: Set up mechanism for putting an end to unproductive litigation
Action Point 2: Make dispute resolution panel work efficiently and effectively with proper administrative support and consider expanding its scope
Action Point 3: Implement appeal registry and strengthen appellate commissioner machinery for quicker disposal of appeals
Action Point 4: Issue revenue rulings on important legal issues having wider ramifications
Action Point 5: Complete work on the Judicial
Referencing system on fast track and make it available to all personnel
Action Point 6: Finalise Advance Pricing
Agreement procedure for transfer pricing

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V ision 2020 is a document that contains what the Department believes is possible for it to accomplish
Vision is what vision does. Vision must be articulated, internalised and acted upon.
At the end of it, the worth of the vision is in its executed reality. As a professional organisation, ITD will bring the power of shared vision to the workplace and act upon it. An effective communication strategy will be implemented for reaching out to the two most important stakeholders of ITD, namely, employees and the taxpayers.
Execution of the projects would require the ITD to inculcate a culture of collaboration across functional areas. ITD is committed to throw its full weight behind these initiatives to realise its vision.
5
Income Tax Department
Department of Revenue, Ministry of Finance
Government of India