Central Board of Direct Taxes (CBDT)

Historical Background of C.B.D.T.

The Central Board of Revenue as the apex body of the Department, charged with the administration of taxes, came into existence as a result of the Central Board of Revenue Act, 1924. Initially the Board was in charge of both direct and indirect taxes.

However, when the administration of taxes became too unwieldy for one Board to handle, the Board was split up into two, namely the Central Board of Direct Taxes and Central Board of Excise and Customs 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.

Functions and Organisation

The Central Board of Direct Taxes 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.

• It is a part of the Department of Revenue in the Ministry of Finance, Government of India.
• It provides essential inputs for policy and planning of direct taxes in India and is also responsible for administration of the direct tax laws through Income Tax Department.
• It is also India’s official Financial Action Task Force unit.
• The CBDT Chairman and Members of CBDT are selected from Indian Revenue Service (IRS) whose members constitute the top management of Income Tax Department.

Composition and Functions of CBDT

The Central Board of Direct Taxes consists of a Chairman and following six Members: -

1. Chairman
2. Member (Income-tax)
3. Member (Legislation & Computerisation)
4. Member (Personnel & Vigilance)
5. Member (Investigation)
6. Member (Revenue)
7. Member (Audit & Judicial)

Functions:

The following are the functions of the Chairman:

1. Administrative planning of the IT Department.
2. Act as advisor and conscience keeper of the IRS.
3. Handle senior appointments.
4. Transfers and postings of officers in the cadre of Chief Commissioner of Income-tax and Commissioner of Income-tax.
5. Matters dealt with in the Foreign Tax and Tax Research Division, except matters under Section 80-O of the Income-tax Act, 1961.
6. Ensure that the Cabinet decisions are implemented
7. Advise the Finance Minister  of India.
8. All matters relating to Central and Regional Direct Taxes Advisory Committees and Consultative Committee of the Parliament.
9. Public Grievances.
10. Provide an element of continuity and stability to administration during crises