Income Tax Department
|Jurisdiction||Government of India|
|Parent department||Department of Revenue|
The Income Tax Department, also referred to as IT Department, is a government agency in charge of monitoring the income tax collection by the Government of India. It functions under the Department of Revenue of the Ministry of Finance. It is responsible for administering following direct taxation acts passed by Parliament of India.
- Income Tax Act
- Wealth Tax Act
- Gift Tax Act
- Expenditure Tax Act
- Interest Tax Act
- Various Finance Acts (Passed Every Year in Budget Session)
The IT Department is also responsible for enforcing the Double Taxation Avoidance Agreements and deals with various aspects of international taxation such as Transfer Pricing. Finance Bill 2012 seeks to grant Income Tax Department powers to combat aggressive Tax avoidance by enforcing General Anti Avoidance Rules.
The Central Board of Direct Taxes (CBDT) is a part of Department of Revenue in the Ministry of Finance. The CBDT provides inputs for policy and planning of direct taxes in India, and is also responsible for administration of direct tax laws through the IT Department. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex officio capacity also function as a division of the Ministry dealing with matters relating to levy and collection of direct taxes. The CBDT is headed by Chairman and also comprises six members, all of whom are ex officio Special Secretary to the Government of India.
The Chairman and members of the CBDT are selected from the Indian Revenue Service (IRS), whose members constitute the top management of the IT Department. The Chairman and every member of CBDT are responsible for exercising supervisory control over definite areas of field offices of IT Department, known as Zones. Various functions and responsibilities of the CBDT are distributed amongst Chairman and six members, with only fundamental issues reserved for collective decision by the CBDT. The areas for collective decision by the CBDT include policy regarding discharge of statutory functions of the CBDT and of the Union Government under the various direct tax laws. They also include general policy relating to:
- Set up and structure of Income Tax Department;
- Methods and procedures of work of the CBDT;
- 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 all personnel of the Income-tax Department;
- Laying down of targets and fixing of priorities for disposal of assessments and collection of taxes and other related matters;
- Write off of tax demand exceeding Rs.25 lakhs in each case;
- Policy regarding grant of rewards and appreciation certificates.
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.
Components of INCOME TAX LAW :-
Income tax Act - 1961 :- The levy of income tax in India is governed by the Income Tax Act, 1961 . This Act came into force on 01st April 1962, The Act Contain 298 Section and XIV Schedule. Many of the section are further divided into sub -section , clause and sub - clause , which are denoted with in bracket. For Example , if we have to refer to section 80 D Sub- Section (2) clause (b) , the same should be written as Section 80(2)(b)' These undergo change every year with additions and deletions brought about by the annual finance Act passed by parliament .
The Finance Act:- Every year , the Finance Minister of the Government of India Introduce the Finance Bill in the Parliament's Budget Session, when the Finance Bill is passed be both the house of the parliament and gets the assent of President , it become the Finance Act , Amendments are made Every Year to the Income Tax Act , 1961 and other tax laws by the Finance Act .
- Income Tax Department Karnataka & Goa
- Central Excise (India)
- Union budget of India
- Value added taxation in India
- Tax law
- Special Economic Zone
- Domestic tariff area
- Direct Taxes Code
- The Income-tax Act, 1961
- Service tax in India
- "Question Bank". Incometaxindia.gov.in. 2009-03-31. Retrieved 2013-07-21.
- "Union Budget 2012: GAAR empowers I-T department to deny tax benefits to 'companies'". The Times Of India. 2012-03-16.
- "Information to be published under section 4(1)(b) of the Right to Information Act, 2005" (PDF). Central Board of Direct Taxes, Government of India. Retrieved 10 December 2014. This article incorporates text from this source, which is in the public domain.