The Inter-Charge Transfer (ICT) policy in the Income Tax Department earlier governed by the Ministry of Finance letter dated 10th May 1990 and several subsequent circulars and instructions from the HRD, CBDT, was withdrawn through a CBDT Circular dated 22nd December 2020. In its place, the Loan Basis Transfer Policy was introduced which later led to numerous litigations and employee grievances.
To resolve the issues faced by Group B (Non-Gazetted) and Group C officials, the Income Tax Employees Federation (ITEF) has proposed a detailed framework for a new Inter-Charge Transfer Policy suggesting suitable amendments to the 1990 guidelines.
The new policy proposes that Inter-Charge transfers will not apply to posts filled entirely through promotion, such as Notice Server or Stenographer Grade-I. Transfer requests will only be considered for posts that have a direct recruitment quota, and employees must complete a minimum of three years of service in the relevant cadre before applying.
Applications for ICT should be made through the Principal Chief Commissioner of Income Tax (CCA) of the home region who will then forward it to the CCA of the recipient region. Transfers will be approved only against clear vacancies in the direct recruitment quota, and the decision of the recipient region’s CCA will be final. No re-transfer requests will be allowed later.
Priority in transfer consideration should be given to:
• Unmarried, widow, or divorcee women employees
• Employees whose spouses work in Central/State Government or PSUs
• Physically challenged employees
• Those with serious medical conditions (self or family)
• Ex-servicemen and other deserving categories
Transfer requests will not be entertained if any vigilance case, departmental proceeding, or court matter is pending against the employee.
Employees seeking transfer must also submit an affidavit before a First-Class Judicial Magistrate, confirming details such as grounds for transfer, length of service and willingness to accept terms of the transfer. They must agree that:
• Their seniority will be fixed at the bottom of all direct recruits in the recipient region.
• Promotional and confirmation rights in the home region will be forfeited.
• Past service will not count toward promotion in the new region, as per the Hon’ble Supreme Court’s ruling (Civil Appeal No. 4356 of 2025).
• They may be required to reappear for departmental exams if necessary for their post.
• If they later dispute their seniority or qualifying service, their transfer can be cancelled and they may be sent back to the home region with no further transfer opportunity.
• No joining time or transfer allowance will be payable on reversion.
The proposal further suggests that ICTs should be processed under the same rules applicable to direct recruitment quota vacancies, maintaining category-wise quotas (General, EWS, OBC, SC/ST, PWD, Ex-servicemen etc.). Applications should be handled on a first-come first-served basis with each region maintaining a transparent list on the HRMS portal.
It is recommended that the recruitment rules of all cadres be amended to reflect that past service in the home region will not count for promotion after ICT. Transfers should be conducted once every year, just before direct recruitment notifications are issued to the Staff Selection Commission (SSC).
The Principal Chief Commissioners (CCAs) will have delegated powers to approve transfers on compassionate grounds as per the prescribed terms. Any relaxation to these conditions will require CBDT’s prior approval. The powers are applicable only for employees within the Income Tax Department.
Priority consideration should be given to employees who had applied before 22.12.2020, when the loan-based policy was introduced. The proposal also suggests that HRD, CBDT should issue ICT orders once a year before notifying direct recruitment vacancies to ensure uniform implementation across all regions.
Source: Income Tax Employees Federation (ITEF), New Delhi
View proposal here
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