Checked 29 September 2026. From Annexure-I of the Departmental Examination Rules 2026 for Income Tax Officers. A syllabus revision for 2027 would override it; none has been announced.
The Income Tax Officer (ITO) departmental exam is the gate between the Inspector grade and a gazetted officer post, and it is taken by Inspectors, Office Superintendents, Tax Assistants and Stenographers who have already passed the Inspector exam. Its syllabus was rewritten for 2026. Annexure-I of the Departmental Examination Rules 2026 for Income Tax Officers now names sections, chapters or orders for most of the allied laws (a few, such as the Hindu Succession Act and the LLP Act, are listed whole), twelve accounting standards, seven Supreme Court themes worth 15 marks, and a new paper on the department's own IT systems. This guide sets all of it out paper by paper, with the weights the rules print, so that a candidate for the next sitting can plan against the real syllabus rather than an old list.
Where other pages get this wrong
The ITO exam is five papers of 100 marks that include taxpayer services, a three-hour computation-and-drafting paper and an IT Applications paper. It is not a test of "book-keeping and office procedure", and serving ITOs do not take it.
Commonly published instead: Listings describing it as an exam "for serving Income Tax Officers and Inspectors" that "covers the Income-tax Act and rules, other direct taxes, book-keeping and office procedure".
Rule III of the ITO rules opens the exam to Inspectors, Office Superintendents, Tax Assistants and Steno Grade I and II who have passed the Inspector exam, for promotion to ITO. Book-keeping is an Inspector-exam paper. The ITO papers are set out in Rule VI(1) and Annexure-I, below.
ITO rules 2026, Rule VI(1) and Annexure-I (official).
The five papers and their weights
| Paper | Type and time | Books | Weightage printed in the rules |
|---|---|---|---|
| I Income Tax Law and Taxpayer Services | Objective, 2 h | Bare Acts and Rules only (paper table); the books clause also allows a basic ready reckoner | 75% IT Act, Rules and Taxpayer Services; 15% case law; 10% other laws |
| II Advance Accountancy | Objective, 2 h | None | 35% weightage to practical-application MCQs requiring analytical reasoning and computational understanding; the rest not split further |
| III Allied Laws and Office Administration | Objective, 2 h | Bare Acts and FR, SR, GFR (see the books conflict below) | 50 Allied Laws, 50 Office Administration |
| IV Computation of Income and Drafting | Subjective, 3 h | IT Act and Rules | 50 Computation, 50 Drafting |
| V IT Applications and Operations | Objective, 2 h | None | Not split |
ITO rules 2026, Rule VI(1)(a)-(e) (official). The 65 in Paper-II is our subtraction, not a figure the rules print.
Every objective paper carries a deduction of 1/4 of a mark per wrong answer, and each paper must be passed on its own at 50% (45% for SC, ST and PwBD candidates). The rules say each paper carries "100 marks MCQs" but do not state the number of questions for 2026. The 2025 ITO objective papers we read (Papers 1 to 3, set under the old rules) had 100 one-mark questions each; the subjective paper was different, and that is the last pattern on record, not a promise for the next one.
Paper-I: Income Tax Law and Taxpayer Services
Part A (90 marks) is the Income-tax Act 1961 "(till its applicability)" and the Income-tax Act 2025, with the Rules and their practical application. The 2025 Act came into force on 1 April 2026 (section 1(3) of the Act; PIB release of 1 April 2026), and its repeal clause keeps the 1961 Act alive for proceedings about tax years that began before that date (section 536(2)(c)). An officer works both, so the exam covers both. Part B (10 marks) is two other laws: the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, and the Benami Transactions (Prohibition) Amendment Act 2016.
Taxpayer services and digital service delivery are named in detail: the Taxpayers' Charter, personalised communication, digital platforms, TRACES, Form 26AS, e-PAN, prefilled returns, Aaykar Sampark Kendra, SEVOTTAM, CPGRAM and e-Nivaran. These are the department's own services, and questions on them reward someone who has used them at a desk.
The 15 marks on Supreme Court ratios
The rules reserve 15 marks for MCQs on the ratios of Supreme Court judgments, grouped under seven themes. The rules name the themes, not the cases. The section pointers in the right-hand column are ours, to help you find the provisions each theme turns on; they are not part of the syllabus text.
| Theme named in the rules | Where the law sits in the 1961 Act (our pointer) | In the 2025 Act (our pointer) |
|---|---|---|
| Business expenditure and disallowance | Section 37 (general), section 40A (expenses not deductible in certain circumstances) | Chapter IV, computation of total income |
| Capital gains | Section 45 | Section 67 |
| Exemption and deduction | Chapter III (incomes not included) and Chapter VI-A (deductions, from section 80A) | Chapter III and Chapter VIII (from section 122) |
| Cash credits and unexplained income | Section 68 (cash credits), section 69 (unexplained investments) | Section 102 (unexplained credits), section 103 (unexplained investment) |
| Reassessment and reopening | Section 147 (income escaping assessment), section 148 (notice) | Section 279 (income escaping assessment), section 280 (notice) |
| Search assessments and post-search additions | Section 132 (search and seizure); sections 153A and 153C; Chapter XIV-B, block assessment (section 158B onward). Which regime applies depends on the date of the search: Chapter XIV-B is reported to govern searches from 1 September 2024 after the Finance (No. 2) Act 2024 (reported, not checked by us against the amended text) | Section 247 (search and seizure); sections 292 to 294, "Special procedure for assessment of search cases" |
| Revisional jurisdiction | Section 263 (orders prejudicial to revenue), section 264 (other orders) | Section 377 and section 378 |
Section numbers above were checked against the 1961 Act as published on India Code and against the Gazette text of the 2025 Act. Because Paper-I is an open-Bare-Act paper, knowing where a provision sits in each Act is worth real minutes on the day.
Paper-II: Advance Accountancy
The paper is set at "graduation standard" and covers final accounts; partnership accounts including change in constitution and dissolution; company accounts, including final accounts, issue and forfeiture of shares and contingent expenditure; hire purchase, consignment and joint venture; depreciation by the straight-line and written-down-value methods; amalgamation, absorption and reconstruction; commercial terms; and twelve accounting standards. The rules give "35% weightage" to MCQs based on practical applications, requiring analytical reasoning and computational understanding, so expect problems to work, not just definitions; weightage is a share of marks, not a question count. The same paper is also to "test the candidate's knowledge of general commercial terms". No books are allowed.
| Standard | Title (as issued by ICAI) | Also in the ITI syllabus? |
|---|---|---|
| AS-1 | Disclosure of Accounting Policies | Yes |
| AS-2 | Valuation of Inventories | Yes |
| AS-7 | Construction Contracts | Yes |
| AS-9 | Revenue Recognition | Yes |
| AS-10 | Property, Plant and Equipment | Yes |
| AS-11 | The Effects of Changes in Foreign Exchange Rates | No |
| AS-12 | Accounting for Government Grants | No |
| AS-13 | Accounting for Investments | No |
| AS-16 | Borrowing Costs | No |
| AS-19 | Leases | No |
| AS-22 | Accounting for Taxes on Income | Yes |
| AS-29 | Provisions, Contingent Liabilities and Contingent Assets | Yes |
The rules print each standard with its title as well as its number; the titles above are the ICAI titles. An Inspector who passed the ITI accountancy paper has seven of these twelve already; the five new ones (AS-11, 12, 13, 16 and 19) are where an ITO candidate's accountancy revision should start.
Paper-III: Allied Laws and Office Administration
Allied Laws, 50 marks
| Law | Parts named in the syllabus |
|---|---|
| Indian Contract Act 1872 | Chapters I to VI |
| Transfer of Property Act 1882 | Sections 5-11, 44-53A; Chapter III; sections 58, 59A, 69, 73, 100, 102, 103; sections 105-108; Chapter VII; section 130 |
| Hindu Succession Act 1956 | The Act |
| Companies Act 2013 | Sections 1-2, 3-15, 43-48, 52, 53, 55, 60, 63 and 71, 128-138, 230-240, 359-365 |
| Indian Partnership Act 1932 | Chapters I to VI |
| Code of Civil Procedure 1908 | Order V; Order XVI; sections 60-63 with Order XXI; Order XIX; Order XXVI rules 1-18; Order XLVII |
| Information Technology (Amendment) Act 2008 | Chapters I to V and XI |
| Right to Information Act 2005 | Sections 2-4 and 6-11 |
| Limited Liability Partnership Act 2008 | The Act |
Office Administration, 50 marks
Eleven items: the Fundamental and Supplementary Rules; CCS (CCA) Rules 1965; CCS (Conduct) Rules 1964; CCS (Leave) Rules 1972; CCS (Pension) Rules 2021; the Delegation of Financial Powers Rules 2024; the General Financial Rules 2017; the Manual of Office Procedure, Volumes I to III; the Sexual Harassment of Women at Workplace (POSH) Act 2013; the Rights of Persons with Disabilities Act 2016; and public procurement through GeM with contract management. The Pension Rules 2021, the Delegation of Financial Powers Rules 2024 and the GeM item are the newest texts in the list, so older guidebooks will not have them.
Paper-IV: Computation of Income and Drafting
This is the only handwritten paper for officers: the question is on screen and the answer goes into a physical booklet. It runs for three hours and the Income-tax Act and Rules may be used.
| Part | What the syllabus names |
|---|---|
| A Computation (50) | Heads of income; exempt income and deductions; aggregation, set-off and carry forward, clubbing; total income of individuals, firms, LLPs and companies; tax, interest and refund |
| B Drafting (50) | Statutory notices including questionnaires and show-cause notices; assessment orders; penalty notices and orders; Income/Loss Determination Proposals (ILDP); office communications on assessment, demand, refund and rectification |
Recounting of this paper is allowed within 45 days of the Directorate uploading the result, or 30 days of the In-charge declaring it, whichever is earlier (ITO Rule XII(6)). There is no revaluation of objective papers.
Paper-V: IT Applications and Operations
The new paper is common in its core to the ITO, ITI and Ministerial Staff exams, but the ITO version is wider. Reading the two lists side by side, the officer version adds the items below; this comparison is ours.
| Area | ITO paper | ITI paper |
|---|---|---|
| ITBA modules: portal, ITR processing, rectification, recovery, audit, appeal (faceless appeal, appeal register, CSR), OGE, penalty, e-Nivaran, PAN/TAN functions, TDS, common functions, MIS reports, email and VC | Yes | Yes |
| Assessment module | Yes, plus scrutiny proceedings, TPO and VO references, and set-aside cases to the AO and CIT(A) | Yes, without those items |
| HRMS in ITBA | Yes | Yes |
| Insight portal: e-verification, third-party reporting | Yes | Yes |
| ITD Information Security Policy 2020 | Yes | No |
| Digital forensics: CBDT DIALs standards, search devices, disk, mobile, e-mail and cloud forensics, cloning, certificate under section 63(4)(c) of the Bharatiya Sakshya Adhiniyam, chain of custody, panchnama | Yes | Yes |
A 157-page compendium for this paper, prepared for the 2026 exam, is hosted on the Hyderabad region's website. It describes itself as a study aid and "not a statutory or officially issued publication", so use it for orientation and check anything that matters against the rules.
Books: what you may carry
Rule VI(1)(g) allows "only Bare Acts/Rules or basic ready reckoner containing tax tables, depreciation rates, capital gains index" in Papers I, III and IV. Rule VI(1)(c), on Paper-III, says Bare Acts and FR, SR and GFR "shall be provided for this paper". The two clauses do not say the same thing, and we do not know which the centres will follow; ask your In-charge of Examination. There is a second mismatch for Paper-I: the paper table labels it "With Books - Bare Acts and Rules Only", while Rule VI(1)(g) also admits a basic ready reckoner. Follow any instruction issued for your sitting before carrying one. An arithmetic calculator is allowed in the hall; a scientific calculator, phone or other gadget is not (Rule VI(1)(h)).
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How many papers are in the ITO departmental exam?
Five papers of 100 marks each under the 2026 rules: Income Tax Law and Taxpayer Services, Advance Accountancy, Allied Laws and Office Administration, Computation of Income and Drafting, and IT Applications and Operations.
Which ITO paper is subjective?
Paper-IV, Computation of Income and Drafting. It runs for three hours, allows the Income-tax Act and Rules, and is answered in a written booklet.
Is the Income-tax Act 2025 in the ITO syllabus?
Yes. Paper-I Part A covers the Income-tax Act 1961 "(till its applicability)" and the Income-tax Act 2025, with the Rules. The 2025 Act came into force on 1 April 2026.
How many marks are for case law in ITO Paper-I?
15 marks of MCQs on the ratios of Supreme Court judgments, under seven themes: business expenditure and disallowance, capital gains, exemption and deduction, cash credits and unexplained income, reassessment, search assessments, and revisional jurisdiction.
Which accounting standards are in the ITO syllabus?
Twelve: AS-1, 2, 7, 9, 10, 11, 12, 13, 16, 19, 22 and 29.
Are books allowed in the ITO exam?
Only in Papers I, III and IV. The books clause allows Bare Acts, Rules or a basic ready reckoner; the paper table labels Paper-I "Bare Acts and Rules Only", and for Paper-III another clause says the Bare Acts and FR, SR and GFR "shall be provided". Confirm with your centre. Advance Accountancy and IT Applications are without books.
What is ILDP in the ITO drafting paper?
Income/Loss Determination Proposals, which the syllabus lists among the drafting items for Paper-IV, alongside notices, assessment orders and penalty orders.
How many questions are in each ITO paper?
The 2026 rules do not say; they state 100 marks per paper. The 2025 ITO objective papers we read, set under the old rules, had 100 one-mark questions each; the subjective paper was not a question count.
Does the ITO IT Applications paper differ from the Inspector one?
Yes. On our reading of the two syllabi, the ITO version adds the ITD Information Security Policy 2020 and assessment-module items on scrutiny, TPO and VO references and set-aside cases.
Who can sit the ITO departmental exam?
Inspectors, Office Superintendents, Tax Assistants and Steno Grade I and II who have passed the Inspector (ITI) departmental exam (ITO rules 2026, Rule III).
Sources
- official — CBDT / DGIT(HRD) — Departmental Examination Rules for Income Tax Officers, 2026
- official — CBDT / DGIT(HRD) — Departmental Examination Rules for Income Tax Inspectors, 2026
- official — DGIT(HRD) — Notification for Departmental Examinations 2026, F.No. DE/Notification/ITO/ITI/MS/2026/ADG/54 dated 05.06.2026 (with Annex-I and Annex-II timetables)
- official — The Income-tax Act, 2025 (No. 30 of 2025), Gazette of India
- official — The Income-tax Act, 1961 — India Code PDF (read from an archived copy)
- official — PIB, Ministry of Finance, 01.04.2026 — Income-tax Act, 2025 comes into force from today
- reported — Compendium: IT Applications and Operations, Departmental Examination 2026 (hosted on the Hyderabad region site; it describes itself as a study aid, not an official publication)
official = a document published by the conducting body. reported = a news or coaching site we could not check against an original. Where sources disagree this page says so rather than picking one.
