To pursue a career in tax law is a profitable undertaking. This role requires individuals to structure, negotiate, document business entities, advising clients on the various tax implication of specific financing, joint ventures, tax-exempt organizations, taxation of compensation, estates, gifts and the Indian taxation of international transactions.
In today’s time, tax law is considered competitive and yet rewarding. As mentioned above, there are minute details in each and every different type of categories which come under tax law. Additionally, knowledge and understanding in the field of accountancy and audit become a plus.
This is a field which requires individuals to be updated with the advancement of new rules and regulations. Moreover, success can be achieved by incorporating a stable work ethic, positive conceptual clarity and wisdom of every implication of a tax on an organization or individual.
It is important to understand the proper balance of protecting the investors/customers as well as to add revenue for the state. It is an amazing career opportunity for individuals who seek to be a part of endless learning, challenging circumstances and steady growth.
Tax is vast with many subfields to select. Depending on the specifics such as direct tax, indirect tax, trade tariffs, customs tax, transfer pricing and various others. There are many universities all over India that offer courses in the field of taxation at certificate, diploma and degree levels. Though whichever choice is selected it is important to have a higher secondary education certificate (10+2) of passing from either a state or national board. All the students who are interested to join the Indian Revenue Service (Income Tax) Group ‘A’ should be applying for the Civil Services Examination (CSE) which is conducted by the UPSC every year. Every student appearing for this exam is allowed four attempts (there is no restriction on the number of attempts for SC/ST candidates and seven attempts for OBC candidates). After clearing the preliminary examination the candidates are further selected for the main written examination and then qualifying individuals are called for the personal interview.
It is important for students to take in-depth knowledge of what is taught at educational institutions as well as read more documents where practical knowledge is explained in detail. For example, there are certain implications from a commercial perspective, impacts of non-cash transactions, charitable foundations which are not taught a part of educational learnings. Since the subject of tax is so vast it is difficult to cater to every subject and hence it important to be ready to learn more than what is taught.
Aspiring candidates have the opportunity to be a part of any related organizations such as tax accountant, tax policy analyst, tax recruiter, tax advisor, tax collectors, revenue agents, tax manager, employment tax specialist and many others.
Skills & Prospects
A good combination of accounting and math skills are highly important, including exceptional oral and written communication skills. An individual has to have an excellent approach towards thinking in a positive, analytical and critical way to practice in the field of tax law. Organizations look for applicants who can interpret complex legislation and explain clients’ clearly; they should excel a communication, numeracy, time management, commercial awareness, problem-solving and attention to detail.
IRS officers are the main individuals who manage the collection, administration and policy of direct and indirect taxes. These officers are majorly the tax administrators of India who function under the Central Board of Direct Taxes in the Department of Revenue under the Ministry of Finance, Government of India.
There is an immense growth perspective of advancement to be in the high ranking positions in the departments of Vigilance, Securities and Exchange Board of India and Narcotics Control Bureau. Additionally, being a part of the Income Tax Department includes collaborating for work in the sections of social services, forest department, environment department, security, infrastructure, education, public facilities and various others. The areas of direct tax act, mainly, the Wealth Tax Act 1957, Income Tax Act 1961, Interest Tax Act 1974, Securities Transaction Tax Act 2004, the Gift Tax Act 2005, Banking Cash Transaction Tax Act 2005, Fringe Benefits Tax Act 2004, etc are included in the Income Tax Department.
The remuneration in the field of taxation depends from one organization to the other. However, beginners have a beginning salary of Rs. 2,00,000 – Rs. 5,00,000 per annum.
Taxes play a vital role in how the government funds its functioning and operations. To ensure that taxes are levied fairly is critical for a government. Individuals in the field of tax play an important role of advocates for their clients. Any aspiring candidate should take into consideration that a career in tax is a highly competitive, innovative and highly skilled professional organization. If one decides to work hard and dedicate their learning into practical situations then the sky is the limit to success.