Income tax department has 26,997 vacancies: What taxpayers need to know

The Income Tax Department is functioning with 26,997 vacancies across Group A, B and C posts, according to the government. Even as the department faces a staffing shortfall, the Centre said it has strengthened tax administration through greater use of technology, including faster processing of income tax returns (ITRs) and faceless assessments.

In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said, "The vacancies in Group A, B & C in the Income Tax Department as on January 1, 2026, are 26,997. Occurrence and filling up of vacancies is a continuous process."

He added that "as and when vacancies arise, such vacancies are filled regularly in accordance with the terms of the mode of recruitment prescribed in the relevant recruitment rules, namely direct recruitment through UPSC/SSC or through promotion as applicable."

Instead, the minister highlighted the department's technology-led approach, saying that "measures have been taken to strengthen and modernise the tax administration by leveraging information and digital technology for ease of filing, faster processing of returns, data analytics and faceless assessments."

According to the government, the New Income Tax Act, 2025, has also resulted in "a landmark development to simplify language, remove obsolete provisions and consolidate & restructure provisions."

For taxpayers, the government's response indicates that the Income Tax Department is increasingly relying on technology for services such as return filing and processing. However, the reply did not specify whether the existing vacancies have had any impact on timelines for refunds, assessments or other taxpayer services.

The government has acknowledged the staffing gap but has pointed to technology and process reforms as measures to strengthen tax administration. The reply does not indicate whether the vacancies have affected taxpayer services such as refunds or return processing.