The Income Tax (IT) Department in the city is dealing with severe staff shortage even as it faces pressure to achieve higher tax collection targets. With only around 40 per cent of its sanctioned workforce in place, the Department is trying to meet a revenue target of Rs 14,200 crore despite vacancies at almost every level, including assistant commissioners (AC), deputy commissioners (DC) and inspectors, sources said. According to sources, around 10 posts of AC and DC are lying vacant.

 

The officers are responsible for the assessment, investigation and recovery of tax. Inspector-level deployment is similarly stretched, with a lot of offices functioning with one Inspector against a sanctioned strength of two. “Overall working strength across Nagpur is only around 40 per cent of sanctioned manpower,” an official lamented. The manpower deficit is not just a city problem, but a national trend. The Central Board of Direct Taxes (CBDT) has reported 11,809 vacancies in Group B and Group C cadres for 2025 recruitment cycle, while more than 2,000 vacancies exist nationally at AC and DC level alone.

 

“Every officer is handling multiple charges simultaneously, which affects efficiency,” officials acknowledged to ‘The Hitavada’. As of March 31, 2026, Nagpur had Rs 8,600 crore in unclassified tax demand, including 4.73 lakh entries below Rs 50 lakh worth Rs 2,160 crore and 1,676 cases above Rs 50 lakh amounting to Rs 6,439 crore. The challenge is expected to intensify during FY 2026-27. Alongside a Rs 14,200-crore revenue target, the Department must reduce arrears, classify Rs 8,600 crore in tax demand, strengthen investigation activities, implement the new Income Tax Act, 2025, and complete 50 hours of mandatory training for every officer, all while functioning with barely two-fifths of its sanctioned manpower.