Central Board of Direct Taxes (CBDT)

Source: DD News

Context: The Central Board of Direct Taxes (CBDT) launched an aggressive strategy to recover Rs. 2.4 lakh crore of undisclosed income through intensified searches, raids, and data-driven actions.

About Central Board of Direct Taxes (CBDT):

• What is CBDT?

• The Central Board of Direct Taxes (CBDT) is a statutory authority responsible for administering direct tax laws in India. It functions under the Department of Revenue, Ministry of Finance.

• The Central Board of Direct Taxes (CBDT) is a statutory authority responsible for administering direct tax laws in India.

• It functions under the Department of Revenue, Ministry of Finance.

• Established in: 1964

• Formed under: The Central Board of Revenue Act, 1963, after the bifurcation of the Central Board of Revenue (1924).

• Ministry: Ministry of Finance, Government of India.

• Objectives:

• Formulate policies for direct tax administration. Ensure effective enforcement and compliance of tax laws. Widen and deepen the tax base to promote fiscal stability. Promote transparency, voluntary compliance, and fight tax evasion.

• Formulate policies for direct tax administration.

• Ensure effective enforcement and compliance of tax laws.

• Widen and deepen the tax base to promote fiscal stability.

• Promote transparency, voluntary compliance, and fight tax evasion.

• Members: The CBDT is composed of one Chairperson and 6 Members.

• Functions:

• Policy Making: Formulates and administers policies relating to direct taxes like income tax, corporate tax, and wealth tax (now abolished). Supervision: Oversees the functioning of the Income Tax Department. Investigation: Conducts searches, raids, and assessments to curb tax evasion and black money. International Cooperation: Facilitates tax treaties, international information exchange, and global tax compliance efforts. Taxpayer Services: Ensures ease of compliance through grievance redressal, e-filing platforms, and awareness initiatives. Legislative Initiatives: Drafts and reviews amendments to tax laws and regulations.

• Policy Making: Formulates and administers policies relating to direct taxes like income tax, corporate tax, and wealth tax (now abolished).

• Supervision: Oversees the functioning of the Income Tax Department.

• Investigation: Conducts searches, raids, and assessments to curb tax evasion and black money.

• International Cooperation: Facilitates tax treaties, international information exchange, and global tax compliance efforts.

• Taxpayer Services: Ensures ease of compliance through grievance redressal, e-filing platforms, and awareness initiatives.

• Legislative Initiatives: Drafts and reviews amendments to tax laws and regulations.