In India, all activities regarding levying and collection of income tax are handled by the Income Tax Department. It is a part of the Indian Government and helps the authorities collect revenue from its citizens. This helps the latter perform its administrative activities, conduct developmental projects and keep the nation moving on the road of progress. CBDT uses advanced data analytics, digital tools, and investigations to track and curb tax evasion. It also implements stringent penalties for tax defaulters and encourages voluntary compliance through simplified tax processes.

All sections working under Member (IT & R) will report through CIT (ITA) & CIT (ITA) will perform the works as assigned by Member (IT & R). All matters relating to Audit & Public Accounts Committee. All matters relating to writ and appeals to the High Courts and Supreme Court and all matters relating to civil suits under the code of Civil Procedure, 1908.

1. After India gained independence, this board was split into two parts, one dealing with direct taxes and the other with indirect taxes, which eventually led to the formation of the CBDT.
2. All matters relating to sections 94A and 230 of the Income-tax Act, 1961.
3. All matters related to Coordinating Body under Multilateral Convention for Mutual Administrative Assistance in Tax Matters.
4. By 2024, almost every tax-related activity, from submitting returns to paying taxes, will be done online using the Income Tax e-Filing Portal.
5. The Income Tax Department was established after the Income Tax Act of 1922, which contained provisions for establishing a proper administrative system to handle income tax collection in India.

Revenue Generation Through Direct Taxes

However, the board was divided in 1964 into the Central Board of Direct Taxes and the Central Board of Excise and Customs. Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on the cbdt is a statutory authority functioning under the your income from salary, house property, capital gains, business & profession and income from other sources.

Q  What is Direct Tax?

All matters related to Joint International Tax Shelter Information Centre(JITSIC) (DLG). All matters relating to PEPs (Politically Exposed Persons), VHNIs (Very High Net-Worth Individuals) and HNIs (High Net-worth Individuals). All matters relating to rewards for Officers and Informants. All matters relating to Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Parliament questions and matters relating to PAC and Consultative and Advisory Committees of Parliament relating to the above.

Global Cooperation on Taxation

There are several rules made under this Act and are collectively known as Income Tax Rules, 1962. Like any other law, this Act and rules also require authorities to regulate it. These authorities are defined under the Income Tax Act, 1961. Let’s take an overview of these sections dealing with Income Tax Authorities in India. The Union Finance Minister Nirmala Sitharaman recently chaired a review meeting with the Central Board of Direct Taxes (CBDT).

Information on Central Board of Direct Taxes

Monitoring of reports in the above subject matter. Issuance of office memorandums/orders in Disciplinary Proceedings pertaining to vigilance matters in respect of Gazetted and retired Non-gazetted officials of the Income-tax Department. Preparation of various reports and returns relating to staffing strength, for group ‘ B’ & ‘ C’ non-gazetted staff, recruitment on non-Indians as sportsmen etc. All matters relating to reservation for SC/ST in services in the attached and subordinate offices under the CBDT.

All matters relating to Penalties, Prosecution and Compounding under Direct Tax laws. All matters relating to exchange of information with FIU-IND, stock and commodities regulators, market intermediaries, etc. and related coordination. Recruitment, training and all other matters relating to service conditions and career prospects of the personnel of the Income-tax Department.

All matters related to Coordinating Body under Multilateral Convention for Mutual Administrative Assistance in Tax Matters. General Coordination on matters related to Exchange of Information and Administrative Assistance in Tax Matters and matters related to Central Direct Taxes Advisory Committee. Taking action on informal assurances made in the course of the meetings of the Public Accounts Committee relating to audit paras dealt in the Section.

It is part of the Department of Revenue under the Ministry of Finance and acts as a liaison between the government with taxpayers. The CBDT is committed to providing efficient taxpayer services and timely grievance redressal. The Central Board of Direct Taxes is the apex body responsible for the administration of direct taxes in India. Its efforts contribute significantly to the overall fiscal management and economic development of India. The Central Board of Direct Taxes (CBDT) is at the heart of India’s direct tax system.

Supervision and control over the work of all DGIT (Investigation), all Chief Commissioners of Income-tax (Central) and DGIT (I&CI). All matters relating to Central and Regional Direct Taxes Advisory Committees and Consultative Committee of the Parliament. Transfers and postings of officers in the cadre of Chief Commissioner of Income-Tax and Commissioner of Income-tax.

Then, in 2009, a Centralized Processing Centre was established in Bangalore to handle bulk paper and e-filed return processing. Hereafter, in 2021, the ITD launched its income tax e-filing portal, making the process of filing returns completely digital. After that, in 2002, computerised returns processing was introduced all over India. In 2007, the All India Tax Network (TAXNET) was set up and it established a connection between 700+ offices across 500+ cities. The Income Tax Department was established after the Income Tax Act of 1922, which contained provisions for establishing a proper administrative system to handle income tax collection in India.