Delay In Filling Key Posts In Apex Tax Body Raises Concerns

Background

The delay in appointing members of the Central Board of Direct Taxes (CBDT), the apex body of the Income Tax Department, is puzzling the entire revenue service and tax bureaucracy.

Central Board of Direct Taxes (CBDT)

  • It is a statutory body established as per the Central Board of Revenue Act, 1963.
  • It is India’s official financial action task force unit.
  • It is administered by the Department of Revenue under the Ministry of Finance.

Originally there was a board called the Central Board of Revenue that functioned as the apex body of the Income Tax Department. The said board was set up under the Central Board of Revenue Act, 1924 and was in charge of both direct and indirect taxes. The Central Board of Revenue got split in 1964 into two boards:

  1. Central Board of Direct Taxes
  2. Central Board of Excise and Customs

CBDT Structure

The Central Board of Direct Taxes consists of a Chairman, and six members that deal with the following:

  • Income Tax & Revenue
  • Administration
  • Legislation 
  • Audit and Judicial
  • Investigation
  • TPS & System

The Members of the CBDT are selected from the Indian Revenue Service (IRS). The members constitute the top management of the Income Tax Department.

Functions of CBDT

  • It deals with matters related to levying and collecting Direct Taxes.
  • Formulation of various policies.
  • Supervision of the entire Income Tax Department
  • Suggests legislative changes in Direct Tax Enactments
  • Suggests changes in tax rates 
  • Proposes changes in the taxation structure in line with the Government policies.

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