Income Tax Department has reiterated its commitment to maintaining the highest standards of ethical conduct among its officers and officials. As part of a comprehensive vigilance exercise, the department has reminded its personnel to strictly adhere to service conduct rules, particularly in relation to family members involved in business activities. This move is aimed at preventing conflicts of interest and ensuring transparency in the functioning of the department.
Service Conduct Rule 15(3) Reminder
The focal point of the reminder is Rule 15(3) of the Central Civil Services (Conduct) Rules 1964, which mandates that every government servant must report to the government if any member of their family is engaged in a trade or business or owns or manages an insurance or commission agency. The Directorate General of Income Tax (Vigilance) has identified a lack of awareness among the cadre regarding compliance with this specific rule during ongoing vigilance proceedings.
Defining 'Members of Family'
The rules provide a comprehensive definition of 'Members of family' in relation to a government servant. This includes spouses, dependent children, step-children wholly dependent on the government servant, and any other person related by blood or marriage who is wholly dependent on the government servant. Notably, the communication clarifies that being engaged in business with one's own funds does not exempt reporting under Rule 15(3) and emphasizes adherence to the spirit of the law.
Preventive Vigilance Measures
The communication issued by the Income Tax Department is positioned as a 'preventive vigilance' measure. It seeks to sensitize officers and officials to the importance of reporting family members' business engagements, emphasizing that such reporting is a duty-bound obligation. The overarching goal is to foster a culture of awareness, transparency, and compliance within the department.
Additional Rules on Employment of Family Members
Beyond Rule 15(3), the communication also highlights other pertinent rules related to family members, such as the 'Employment of near relatives of Government servant in Companies or firms.' This rule prohibits government servants from using their position or influence to secure employment for family members in companies or firms. Class One officers are further restricted from allowing their dependents to accept employment in companies or firms with which they have official dealings without prior government sanction.
Mandatory Intimation Requirement
Moreover, the communication emphasizes the mandatory requirement for government servants to promptly inform the prescribed authority of any family member's acceptance of employment in a company or firm. This communication must include details about any official dealings the government servant has had with the said company or firm.
In essence, the Income Tax Department's proactive 'sensitization' exercise underscores its commitment to upholding the highest standards of integrity and ethical conduct among its personnel, contributing to the overall efficiency and trustworthiness of tax administration. The department aims to ensure that officers and officials are well-informed about these rules, fostering an environment free from conflicts of interest and promoting public trust in the tax system.
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