This was informed recently by the government to a Parliamentary panel, examining the amendments to the Prevention of Money Laundering Act (PMLA), officials said.
The department has also submitted a proposal to get additional 20,000 personnel deployed across various ranks, they said.
"There is acute shortage of both manpower and budgetary resources in the Income Tax department, particularly in the investigation directorates. Increasing number of taxpayers, processing of large quantum of data collected, new responsibilities and increasing expectations of taxpayers for international quality services have necessitated increase in manpower resources of the department.
"The department has, accordingly, submitted a proposal for cadre restructuring seeking about 20,000 additional manpower in different grades.
"Complementary budgetary resources will be required to fund the expenditure for hiring, training, equipping and meeting employment expenses of this additional manpower...As against the average global cost of 1 per cent to 1.5 per cent, the cost of collection of the Income Tax department is less than 0.58 per cent, indicating shortage of resources," the Finance Ministry told the panel in its submission.
The I-T investigations wing is the enforcement arm of the department which carries out raids and seizures to keep a check on cases of tax evasion and other economic crimes.