CENTRAL BOARD OF DIRECT TAXES
1. Functions and Organization
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board Revenue Act, 1963. The official of the Board in their ex-offcio capacity also function as Division of the Ministry dealing with matters relating to levy and collection of direct taxes.
2. Historical Background of CBDT
The central Board of Revenue as the apex body of the department, charged with the administration of taxes, comes into existence as the result of the Central Board of the Revenue Act, 1994; initial the Board was in change of both direct and indirect taxes. However, when the administration of taxes become to unwieldy for one Board to handle, the board was split up into two, namely Central Board of Direct Taxes and Central Board of Excise and Customer with effect from 1.1.1964. This bifurcation was brought about by constitution of two Boards u/s 3 of the Central Board of Revenue Act, 1963.
3. Composition and Functions of CBDT
The Central Board of Direct Taxes consists of a chairman and following six Members:-
- Member (Legislation & Computerization)
- Member (Personnel & Vigilance)
- Member (Investigation)
- Member (Revenue)
- Member (Audit & Judicial)
4. Allocation of work:
1. Cases or classes of case, which shall be considered jointly by the Board.
1. Policy regarding discharge of statutory functions of the Board and of the Union Govt. Under the various laws relating to direct taxes.
2. General Policy relating to:-
- Organization of the set-up and structure of Income Tax Department.
- Methods and procedures of work of the Board.
- Measures for disposal of assessments, collection of taxes, prevention and detection of tax evasion and tax avoidance.
- Recruitment, training and all other matters relating to service conditions and career prospects of the personnel of Income Tax Department.
3. Laying down of targets and fixing of priorities for disposal of assessment and collection of taxes and other related matters.
4. Write of tax demand exceeding Rs.25 lakhs in each case.
5. Policy regarding grant of rewards and appreciation certificates.
6. Any other matter which the Chairman or any Member of the Board, with the approval of the Chairman, may refer for joint consideration of the Board.
2. Cases or classes of case, which shall be considered jointly by the Board. Central Board of Direct Tax.
1. Administrative Planning.
2. Transfers and posting of officers in the cadre of Chief Commissioner of Income-Tax and Commissioner of Income-Tax.
3. All matters relating to foreign training.
4. Work relating to Grievance Cell and Inspection Division.
5. Matters dealt with in the Foreign Tax Division expect matter Under Section 80-O of the Income Tax Act, 1961.
6. All matters relating to tax planning and legislation relating to direct taxes referred to Chairman by Member (Legislation).
7. Supervision and control over Direct General of Income Tax (Admn) and Director General of Income Tax (International Taxation).
8. All matters relating to Central and Regional Direct Taxes Advisory Committees and Consultative Committee of the parliament.
9. Any other matter which the chairman or any other Member of the Board may consider necessary to be referred to the Chairman.
10. Coordination and overall supervision of Board’s work.
3. Cases or classes of case, which shall be considered Member (Income-tax).
1. All the matters relating to Income Tax Act, Supper Profit-Tax Act, Companies profit (Sur-tax), Act, and Hotel Receipts Tax Act, except matters which have been specifically allotted to the Chairman or to any other member.
2. All matters relating to interest Tax Act, 1974. Compulsory Deposit Act, 1974.
3. Approvals under Section 36(1) (vii) and (vii a) of the Income-tax Act, 1961.
4. Supervision and control over the work of DGIT (Exemption) and DIT(IT) except the work relating examinations, which would be seen by Member (P & V).
5. Supervision and control over the Chief Commissioner of the Income-tax situated in Northern charge- U.P., Delhi, Punjab, Haryana, Uttranchal & H.P.
6. Supervision and control over the Chief Commissioner of the Income-tax situated in Western Region-Gujarat. Rajasthan, M.P., Chattisgarh & Maharashtra (excluding Mumbai).
4. Cases or classes of case, which shall be considered Member Legislation & Computerization):
1. All work connected with the reports of various commissions and committees relating to Direct Taxes Administration.
2. All matters of tax planning and legislation relating to direct taxes and the Benami Transaction (Prohibition) Act, 1988.
3. Monitoring of tax avoidance devices suggesting legislative remedial action.
4. Computerization of Income Tax Department.
5. Supervision and control over DGIT (System) and DGIT(BPR)
6. Supervision and control over the work of Chief Commissioners of Income-tax situated in Eastern charge-West Bengal, Bihar, Orissa, north East, Jharkhand.
5. Cases or classes of cases, which shall be considered by Member (R) :
1.All matters relating to Revenue budget including assigning of Revenue Budgetary targets amongst Chief Commissioners of income-tax throughout the country.
2.Recovery of taxes (chapter XVII of Income Tax) Except part F thereof, sections 179,281,281B,289, Second Schedule and Third Schedule of the Income-tax Act, 1961.
3.Matters relating to departmentalized accounting system.
4. All matters concerning Wealth-tax Act, Expenditure-tax Act, Estate Duty Act and Benami Transaction (Prohibition) Act, excluding those relating to prevention and detection of tax avoidance.
All matters falling under Chapter XIVA, XXA, XXC of the Income- tax Act, 1961.
6. General coordination of the work in the Board.
7. Work relating to DIT (Recovery), DIT (PR,PP&OL), DIT (O&MS).
8. Supervision and control over the work of Chief Engineers (Valuation Cell).
9. All matters relating to widening of tax base.
VI. Cases or classes of cases which shall be considered by Member Personal & Vigilance):
1. All Administrative matters relating to Income-tax establishments (except transfers and postings of officers of the level of Chief Commissioner of Income-tax and Commissioner of Income-tax). Transfer and posting at the level of Deputy Commissioners and Assistant Commissioners will be made with the approval of the Chairman.
2.All matters relating to deputation of Income-tax officers, Assistant Commissioners of Income-tax and Deputy Commissioners of Income-tax to ex-cardposts.
3. All matters relating to training except foreign training.
4. All matters relating to expenditure budget.
5. All matters relating to implementation of official language policy.
6. Office equipments
7. Office and residential accommodation for the Income-tax Department.
8. Supervision and control of the work of DG (Vigilance), DGIT (HRD), Director General of Income-tax (NADT) Nagpur and DI (Infra).
9. Work relating to Directorate of Income-tax (Income-tax) in matters relating to examination.
10. Vigilance, Disciplinary proceedings and complaints against all officers and members of staff (both gezetted and non-gezetted).
VII. Cases or classes of cases, which shall be considered by Member (Investigation):
1. Technical and administrative matters relating to prevention and detection of tax evasion particularly those falling under Chapter XIIB in so far as they are relevant to the functioning of Directors General of Income-tax (Inv.) and Chief Commissioners of Income-tax (Central), all matters falling under Chapter XIIIC, Chapter XXB, Chapter XXI, Chapter XXII, Sections 285B, 287,291,292, and 292A of Chapter XXIII of the Income-tax Act, 1961 and corresponding provision of other Direct Tax Acts.
2. Processing of complaints regarding evasion of tax.
3. All matters relating to administrative approval for filling, dropping or withdrawing of prosecution cases in respect of offences mentioned in Chapter XXII of the Income-tax Act and corresponding provisions in other Acts relating to Direct Taxes.
4. All technical and administrative matters relating to provisions of sections 147 to 153 (both inclusive) of the Income-tax Act, 1961.
5. Searches, seizures and reward to informants.
7. Voluntary disclosures.
8. Matters relating to the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976.
9. Work connected with High Denomination Bank Notes (Demonetisations) Act, 1978.
11. Supervision and control over the work of Directors General of Income-tax (Investigation), DGIT (Intelligence) and Chief Commissioners of Income Tax (Central).
VIII. Cases or classes of cases, which shall be considered by Member (Audit & Judicial):
1. All judicial matters under Chapter XX and section 288 of the income-tax Act. 1961.
2. All matters relating to writ and appeals to the High Courts and Supreme Courts and all matters relating to Civil suits under the code of Civil Procedure, 1908.
3. Matters relating to appointment of Standing Counsels, Prosecution Counsels and Special Counsels for the Income tax Department before the High Courts and Supreme Court.
4. All matters relating to Audit & Public Accounts Committee.
5. All matters falling u/s. 72A and 80-O of the It Act, 1961.
6. All matters concerning Wealth Tax Act, Expenditure Tax Act, State Duty Act and Benami Transaction (Provision) Act, excluding those relating to prevention and detection of tax avoidance.
7. Supervision and control over the work of DGIT (L&R\) and DIT (Audit).
B. Work allocation among Commissioners of Income-tax, C.B.D.T
1. CIT (Audit & Judicial)
- All files related to Audit & Judicial, DG (L&R).
- Chairman of the Circular group.
2. CIT (Coordination & Sys)
- All Policy matters relating to establishment and cadremanagement, on behalf of CBDT.
- Financial Management relating to expenditure budget for which DIT (O&MS) is the nodal agency, shall be supervised by him on behalf of CBDT.
- Policy relating to infrastructure requirement of the Department.
- Serious cases of Grievances and all VIP references in this regard wherever urgent attention is needed.
- All PMO references, Supervision of Implementation of Cabinet decisions, decisions of Cabinet Committee.
- Any other matters of Coordination on behalf of CBDT as assigned by Revenue Secretary.
- Coordinating the work of various members in the CBDT and maintaining liaison with outside agencies.
- Any other work assigned by Chairman and other higher authorities.
3. CIT (ITA)
- All sections working under Member (IT) will report through CIT (ITA).
- Complaints, Representations relating to above.
- Zonal work pertaining to collection of revenue, coordination with Chief Commissioners of the Zone, and developing strategy for Revenue enhancement of the Zone.
- Parliament questions and matters relating to PAC and Consultative and Advisory Committees of Parliament.
4. CIT (Inv.)
- All sections working under Member (Inv.) will report through CIT (Inv.).
- All tax evasion complaints including those received from M.Ps. and others.
- Inter-departmental coordination relating to investigation and enforcement agencies.
- All complaints/representations, Parliament Questions, PAC work, Consultative and Advisory Committee work relating to the above.
- All matters relating to search and seizure including statistics and cases relating to Sections 132, 132A and 132N of the Income tax Act, Survey operations and CIB work.
- Monitoring the review of the work of the Directorate of Investigation under the Directors General of income tax (investigation).
- Co-ordination with other enforcement Agencies.
5. CIT (IT&CT)
- All Sections working under Member (Rev.) will report through CIT (IT&CT).
- Work connected with constitutional and meetings of the Central Direct Taxes Advisory Committee and the Regional Direct Tax Advisory Committee.
- Work connected with the meeting of Parliamentary Consultative Committee.
- All complaints/representations, Parliament Questions, PAC work, Consultative and Advisory Committee work relating to the above.
- Zonal work of Member (R).
- Matters relating to interpretation of Right to Information Act and its implementation in CBDT.
- Grant of Rewards for outstanding performance in collection of Taxes, including grant of samman Awards to taxpayers.
6. CIT (Vig.)
- All files dealt with by Director (V&L) shall be submitted to the Member (P&V) through Commissioner (Vig.), CBDT.
- CIT (Vig.) shall assist Member (Vig.) in work relating to
- Vigilance and disciplinary proceedings/complaints against Group A Officers.
- Zonal matters falling under Member (P&V).
- Any other work assigned by member (P&V).
- References from the Members of Parliament/VIPs/Ministries and Parliament Question pertaining to the above subject.
7. Media Coordinator
- Appointed ass official spokesperson of CBDT by Finance Minister. All matters dealing with media.
- Media Center, CBDT will be the nodal point for dissemination of information, relating to direct taxes and of public value to the media. 3
- Media Center will seek information for responding to queries raised in the media for the divisions/desks in CBDT, attached offices and field formations of CBDT.
- Media Center will act as office of the Spokesperson, CBDT, and organize press conferences/briefings by the Spokesperson or any other senior functionary besides maintaining record of the same.
- Media center will report the factual position on action taken by the department against high profile individuals/Institutions reported in the media.
- Media Center will give periodical feedback about the public opinion expressed through the media.
- Media Center will act as resource center for keeping record of information, both paper and electronic, appearing in the media.