2022-05-14 12:38:22

Central Board of Direct Taxes

Introduction

CBDT means Central Board of Direct Taxes. It is a statutory authority that is working under the Central Board of Revenue Act, 1963. The authorities of the Board work as a Division of the Ministry managing matters connecting with duty and the collection of direct taxes.

Historical Background of C.B.D.T.

The Central Board of Revenue is the highest body of the Department which came into existence as the outcome of the Central Board of Revenue Act, of 1924. It is charged with the administration of taxes. The Board was in charge of both direct taxes and indirect taxes. However, when the board has many more workloads for the administration of taxes then it may be divided into two parts which is namely, the central board of direct taxes and the central board of Excise and Customs which was the effect on 01-01-1964. According to section 3 of the Central Board of Revenue Act, 1973, this divarication of two boards is brought about by the Constitution.

Composition and Functions of CBDT

The Central Board of Direct Taxes comprises a chairman and six Members. They are giving
following:

1. Chairman

2. Member of income Tax & Revenue

3. Legislative member

4. Administrative member

5. Member for investigation

6. Member of TPS & system management

7. Audit & Judicial member

All members are selected from the Indian Revenue Services. These members are constituted by the top members of the Income Tax Department.

Functions of CBDT

There are many functions of CBDT. But some functions of CBDT are given the following:

The main function of CBDT is to deal with matters related to levying and collecting Direct Taxes.
The important function of CBDT is to Formulate the various policies.
The function of CBDT is to Supervision of the entire Income Tax Department
It suggests legislative changes for the enactment of Direct Tax
It additionally recommends changes in charge rates.
The main Propose of CBDT is to change the taxation structure in line with the Government policies.

Revised instruction for constitution of Local Committees to deal with taxpayers by the CBDT:

The Central Board of Taxes provided for the constitution of ‘Local committees’ to deal with taxpayers’ grievances arising from High-Pitched Scrutiny assessment. As indicated by section 119 of the Income- Tax Act,1961 CBDT issues the instructions to power and functions of local Committees to deal with Taxpayers.

Constitution of Local Committees:

Local committees consist of 3 members of Pr. CIT/CIT rank. To have a viewpoint of the process engaged with the Faceless Assessment process, Local Committees so comprised in every Pr. CCIT region and Pr.CCIT(Exemption) shall have the one region of Pr. CIT.
The other member may be selected from the pool of officers posted as Pr.CsIT/Pr.CIT(Central)/CIT (judicially)/CIT(Audit)/CsIT (DR), ITAT of the respective region.
The senior-most member would be designated as the Chairperson of the Committee.
The Additional CIT (Headquarters) to such Pr. CCIT would act as a member of the Secretary to the Local Committee.

Jurisdiction of Local Committee

The Local Committees were constituted to deal with the grievance petitions of Assesses under the jurisdiction of Pr.CCIT for High-Pitched scrutiny Assessments completed under both faceless and non- faceless assessment regimes. These committees constituted in Pr.CCIT region will also handle the changes in central which are under territorial jurisdiction.

Functions of Local Authority

The Pr. CCIT shall review the work of the Local Committee on a monthly basis. It shall also highlight the outcome of the work of Local Committees along with the action taken on the suggestions made by the Local Authority.
The Local Committees shall be furnished the Quarterly Report by the Pr.CCIT is concerned with the other members of IT&R and CBDT.
The main function of the Local Committees is to effectively and efficiently deal with the grievances of taxpayers and it also helps for supporting an environment where assessment orders are passed in a fair and sensible way.
It is emphasized to the constitution of Local Committees shall be finalized within 15 days of the issue of this instruction.

The action was taken by the Local Committees regarding the Grievance Petition

The Local Committee would be acknowledged when he received the grievance petition. Member of the secretary would be maintained a separate record of the grievance petitions.
Member-secretary forwards the receipt of taxpayers’ grievance of High-Pitched Assessment to the chairman and the Local committee members within 3 days of receipt of the grievance.
The Local Committee may call for the relevant assessment records to peruse from the jurisdiction which is concerned by the Pr.CCIT.
Member-Secretary will ensure the meetings are held at least twice every month during the pendency of the grievance petition with the Local authority. And the report will submit to the Pr. CCIT is concerned.

Conclusion

It concluded that is a statutory authority that is working under the Central Board of Revenue Act, 1963. The officials of the Board function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes. It is charged with the administration of taxes. The Board was in charge of both direct taxes and indirect taxes. However, when the board has many more workloads for the administration of taxes then it may divide into two parts which is namely, the central board of direct expenses and the central board of Excise and Customs.

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