CBDT Full Form, Definition, History, Features, Structure

CBDT stands for Central Board of Direct Taxes.

What is CBDT

CBDT is part of the Ministry of Finance's revenue division. The CBDT's chairman is Mr. Sushil Chandra. Under the Central Board of Revenue Act of 1963, CBDT is the necessary authority. In addition to acting as a Division of the Ministry, the Board's ex-officio members also manage tasks associated with specific and cumulative direct duties. The "central board of direct taxes," is governed by the Department of Income Tax and the administration of direct tax laws. This is responsible for the strategy and design of direct taxes in India.

History of CBDT

The Central Board of Revenue Act passed in 1924, established the Central Board of Revenue as the Department's highest authority and the entity in charge of tax administration. The Board initially handled both indirect and direct taxes. The Central Board of Direct Taxes and Central Board of Excise and Customs, with effect from 1.1.1964, were set up due to the tax administration becoming too complex for one Board to manage. Moreover, This division resulted from the creation of two Boards under Section 3 of the Central Board of Revenue Act of 1963. Ex-officio Board members also serve as a department under the Ministry of Finance. It also handles the issues related to the imposition and collection of direct taxes. Central Board of Direct Taxes (CBDT) placed in the Department of Revenue of the Ministry of Finance of India. It oversees the Income Tax Department's implementation of direct tax legislation. It also provides essential insights into India's direct tax policy and planning. Moreover, It is the designated section of India's Financial Action Task Force. In the past, the Board was in charge of direct and indirect taxes. Because the management of taxes had grown too complex for one body to handle. Also, the Central Body of Direct Taxes and the Central Board of Excise and Customs was split in 1964. The Indian Revenue Service, India's premier civil service, recruits its chairman and members. Moreover, it is who comprise the Department's senior leadership.

Features of CBDT

• It deals with issues about assessing and collecting direct taxes.
• Creation of different policies.
• The complete Income Tax Department is under the supervision
• CBDT proposed Legislative changes for Direct Tax Enactments.
• Proposes adjustments to tax rates
• Proposes alterations to the taxation system following government policies.

CBDT Structure

Six members and a chairman make up the Central Board of Direct Taxes, which oversees the following:

• Taxation & Revenue
• Administration
• Legislation
• Judicial and Audit
• Investigation
• System and TPS

The Indian Revenue Service chooses the CBDT members (IRS). Likewise, The members make up the Income Tax Department's top management.

Emolument, Perquisites, and Accommodation

The Vice Chief of Army Staff/Commanders and Lieutenant Generals in the Indian Armed Forces get salaries comparable to those of the Chairperson of the CBDT. In addition, has the position of Secretary to the Government of India. Issue of Merger of The Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes (CBIC): Latest Update:

• The government has recently clarified that a merger of the CBDT and CBEC is not being proposed.
• The clarification addressed media rumours that the administration was considering merging the two bodies.
• The Parthasarathi Shome-led Tax Administrative Reforms Commission (TARC) recommended the merger plan in its 2014 report as one of its recommendations.
• The concept, however, was rejected by the administration. Under the Central Boards of Revenue Act of 1963, the CBDT and CBIC were established. Moreover, Both boards are supervised by the Ministry of Finance's Department of Revenue.

What does CBDT do?

The CBDT's key duties include the following:

• India's direct tax regulations must be upheld.
• The collection of income and capital gains taxes.
• Managing and controlling the Income Tax Department and other inferior authorities.
• Create direct taxation-related policies and processes.
• Review the Income Tax Department's operations.
• Research issues relating to direct tax administration and policy.

The CBDT contributes to the growth of taxpayer awareness and education. Several programs, including an online course on filing taxes, have been created to encourage financial literacy among taxpayers. The Goods and Services Tax (GST) is being implemented in India, and the CBDT oversees that process. Additionally, the CBDT must oversee all chores related to the division of labour among the income tax commissioners, the CBDT, the monitoring and civil litigation department, all folders related to judicial and review proceedings, and a variety of other responsibilities. [wp-faq-schema title=" Full Form of CBDT FAQs" accordion=1]