What is the Full Form of CBDT
CBDT: Central Bord of Direct Taxes
CBDT stands for Central Board of Direct Taxes. To reduce the black money and other financial frauds The Department of Income Tax (DIT), assigned responsibility for the application of direct tax laws to the Central Board of Direct Taxes (CBDT). The CBDT in India provides the required information for policy-making and planning.
The Indian Revenue Service (IRS), where the top employees are responsible for the administration of the IT Department, is the rank from which the chairman and other members are selected to head the board. Each CBDT member, including the chairperson, maintains general supervision over particular functional divisions at the IT Department's field offices.
The CBDT must make only essential decisions as a group; all other duties and responsibilities are divided among the chairman and the other six members. The CBDT will make decisions collectively in the following areas: the CBDT's policy for carrying out its and the union administration's legal obligations there under numerous different tax legislation.
What is the Central Board of Direct Taxes?
A national organization under the control of the Ministry of India's Ministry of Finance is the Central Board of Direct Taxes (CBDT). It is the top decision-making authority for taxes in India. The CBDT is in charge of establishing the rules and regulations for direct taxes, such as income tax, corporation tax, financial transaction tax, and tax on capital gains.
It also supervises how these taxes are handled either by the Income Tax Division as well as other supporting agencies. A Chairperson and 6 key Members make up the CBDT. The Chairperson is chosen by the Indian President, whereas the Representatives are proposed by the Finance Minister mostly on the advice of the CBDT. The Chairperson and Deputies serve three-year terms in office.
According to the Central Board of Revenue Act of 1963, it was constituted as a statutory body.
- It is a component of India's formal financial actions task force.
- It is managed by the Ministry of Finance's Revenue Department.
- It's important to remember that the Income Tax Department's top administrative body used to be a board known as the Central Board of Revenue. As stated, the Central Board of Revenue Act of 1924 established the above-mentioned board.
Historical Track record of C.B.D.T.
The Central Board of Revenue Act, passed in 1924, established the Central Board of Revenue as the Council's highest authority and the entity responsible for the tax system. The Committee manages both indirect and direct taxation. Under act from 1.1.1964, the Central Board of Direct Taxes & Central Board for Excise and Customs were established due to the functions and responsibilities of tax becoming too complex for a Board to manage. This division resulted from the creation of two Boards under Section 3 of the Central Board of Revenue Act of 1963.
What Work The CBDT Does?
The CBDT's main responsibilities are to:
1. Situations or Groups of Situations that the Board Will Examine Collectively about the performance of Statutory Duties of the Committee and the Union Government Under the Different Direct Tax Laws
- The management of the setup and architecture of the income-tax division.
- The Committee's work techniques and processes.
- Taxation, assessment clearance, tax avoidance identification, and taxation avoidance preventive methods.
- The hiring process, teaching, and any other issues pertaining to the employment status and future career opportunities of the Income-tax Department's staff.
- Setting goals and operational plans for handling taxes, collecting taxes, and other relevant issues
- Write down tax claims that total more than Rs. 25 lakhs for every transaction.
- Policy governing the awarding of prizes and letters of commendation.
- Any other item that the Chairperson or a Committee Member may submit for the Board's collective review with the Chairperson's permission.
2. Situations or Groups of Situations that the Chairperson of the Central Board of Direct Taxes Must Analyse
- organizational strategy.
- officers in the Head Income Tax Commission and Commissioner of Income Tax cadres are transferred and posted.
- everything pertaining to overseas training.
- work associated with the Inspection Department and Grievance Commission.
- The Committee refers the Chairman to all things regarding direct tax legislation and financial planning.
- everything pertaining to the Legislature's Advisory Group and the Central and Provincial Advisory Groups on Internal Revenue.
- Anything else that the Chairman or another Board Member may deem relevant to convey to the Chairperson.
- Coordinating and general oversight of the activity of the Board.
3. Situations or Groups of Situations that a Member Must Analyze (Income-tax & Revenue)
- With the exception of topics that have been initial acquisition by the Chairman or other Members, all subjects pertaining to the Income-tax Act, Super Profit-tax Act, Corporations Profit (Sur-tax Act), and Hotel Revenue Tax Act.
- everything pertaining to the Mandatory Deposit Act of 1974 and the Interest Tax Act of 1974.
- All budget-related issues, along with the distribution of sales expectations amongst some of the country's chief inspectors of income tax.
- Sections 179, 281,281B, and 289 of the Second and Third Schedules of the Income-tax Act, 1961, which are found in Chapter XVII of the Income Tax, deal with tax collection.
- monitoring and oversight of the activity of Pr. CCIT (Exemptions) and any Exemption-related policy issues (Sections 10, 11, 12 & 13).
- Situations or Groups of Situations that a Member Must Analyse (Legislation)
- every work related to Direct Taxes Management reports from numerous committees and commissions.
- everything pertaining to direct taxes, the Benami Transactions (Prohibition) Act of 1988, and/or the Restriction of Benami Property Transactions Act of 1988, as well as tax policy and legislation.
- Analysis of tax evasion techniques encouraging passing preventive legislation.
4. Situations or Groups of Situations that a Member must evaluate (TPS & System)
- everything that has to do with citizen services.
- everything pertaining to the Wealth Tax Act, Spending Tax Act, Estate Duty Act, and Gift Tax Act, with the exception of everything having to do with the investigation and mitigation of avoiding tax.
- everything covered by Chapters XXA & XXC of the Income-tax Act of 1961.
- Supervised all activities within the Board.
- monitoring and oversight of the activities of the Eastern Zone Chief Directors of Income Tax, located in Bihar, Odisha, the North East, Jharkhand, and West Bengal.
- Projects pertaining to DGIT, DGIT (Admin), or DGIT (Services) (Risk Assessment).
- management and oversight of the activities of senior engineers from the Valuation Cell.
- everything that has to do with expanding the revenue base.
5. Situations or Groups of Situations that Members Must Evaluate (administration)
- all procedural issues involving organizations that collect income taxes. According to the Transition and Posting Guidelines from 2010, transactions and postings at the levels of Associate Commissioners, Joint/Addl. Commissioners, Commissioners, and Senior Commissioners will go through Member (Admn.) and require the consent of the Appropriate Authority.
- everything pertaining to the assignment of Department personnel to former positions.
- everything regarding training, with the exception of overseas training.
- everything budgetary spending related.
- everything that has to do with carrying out the official language policy.
- office supplies.
- The Income-tax Department's office and living quarters.
- Control and supervision of the activity of the Pr. DGIT (HRD), Pr. DGIT (Trg), and Pr. DGIT (Vig).
- Watchfulness, disciplinary actions, and accusations against so many personnel and officers.
6. Situations or Groups of Situations that a Speaker must evaluate (Investigation)
- Technical and managerial issues pertaining to tax avoidance prevention and detection.
- handling of tax avoidance complaint cases.
- Everything pertaining to official approval for submitting, dismissing, or withdrawing charges against offenses is listed in Chapter XXII of the Income Tax Law and similar laws in plenty of other Laws connected to Direct Taxes.
- Concerning the provisions of sections 147 through 153 (inclusive) of the Income-tax Act of 1961, all technical and procedural issues.
- inspections, confiscation, and insider rewards
- spontaneous admissions.
- Traffickers and Foreign Currency Exchange Tricksters (Seizure of Assets of Property) Act of 1976-related issues.
- the High Religious group Bank Cards (Demonetizations) Act of 1978-related work.
- All DGIT (Independent inquiry), all Chief Inspectors of Income Tax (Central), and all DGIT's activity is under my direction and control (I&CI).
- everything pertaining to black money
- All issues and cases involving the Benami Activities (Prohibition) Act of 1988 and/or the Restriction of Benami Asset Transactions Act of 1988 that are not being addressed by Members (Legislation), Member (A&J), or Member (Legislation), respectively, of the CBDT
- request screening for the Global Entry Program (GEP).
7. Situations or Groups of Situations that a Member Must Consider (Audit & Judicial)
- everything pertaining to the Income-tax Act of 1961's Chapter XX and Section 288 that goes to court.
- All matters pertaining to court cases under the Civil Procedure Code of 1908, including all writ cases, arguments to the Superior Court and Chief Justice, and so all decisions from those cases.
- the cases well before the High Courts and Chief Justice involving the nomination of Leading Advisers, Trial Consults, and Special Consults for the Income-tax Administration.
- everything that concerns the Inspection and also Public Accounting Committees.
- anything covered by Sections 72A as well as 80-O of the 1961 Income Tax act.
- The direction and supervision of Pr. DGIT (L&R) & Pr. DGIT's work (Logistics).
- The Auditing & General Account Commission, lawsuits even before the Superior Court and Judicial Branch, and the selection of lawyers concerning the Prevention of Benami Land Transactions Act, 1988, as well as all topics and actions, or groups of circumstances, relating to those acts.
In addition, all matters pertaining to the work division among the income tax commissioners, the CBDT, all folders pertaining to the review and judicial matters, the division of tasks among various sections, the monitoring, and civil lawsuits section, and numerous other tasks must be carried out under the supervision of the CBDT.
The government organization in charge of upholding India's direct tax laws is known as the Central Board for Direct Taxes (CBDT). The Indian taxation system has gone through several important changes because the CBDT was established in 1963. Attempting to enforce direct tax rules, collections of all the taxes, and creating a straight tax structure are among the CBDT's main responsibilities. The CBDT is now also actively promoting payer education and knowledge. It has put in place a number of initiatives, such as free internet income tax training, to raise customer financial literacy. The Tax on Products and Services in India is being implemented under the CBDT's supervision (GST).