Introduction
The Central Board of Direct Taxes is also known as CBDT. It is the authority vested with the responsibilities of the administration of laws related to direct taxes through the Department of Income Tax. It is necessary to input for policy and planning which is provided by the CBDT in India. CBDT is a statutory board which is established according to the Central Board of Revenue Act, 1963.
Central Board of Direct Taxes
In India, the Central Board of Direct Taxes is an official financial action task force unit that is administered by the Department of Revenue under the Ministry of Finance. Originally, there was a board which is known as the Central Board of Revenue that functioned as the apex body of the Income Tax Department. This board was set up under the Central Board of Revenue Act, of 1924, and was in charge of both direct and indirect taxes. The Central Board of Revenue got divided into two boards in 1964 which are mentioned below:
Central Board of Direct Taxes
Central Board of Excise and Customs
CBDT Structure
The Central Board of Direct Taxes consists of a Chairman, and six other members who deal with the following departments:
Income Tax & Revenue
Administration
Legislation
Audit and Judicial
Investigation
TPS & System
Indian Revenue Service is a selection of the members of the CBDT. These members were constituted from the top management of the Income Tax Department.
Functions of CBDT
There are many functions of CBDT but some are given below:
It deals with matters which relate to the levying and collecting of 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.
CBDT Amends Income Tax rule 128 for the Foreign Tax Credit Claims
CBDT amends Rule 128 of the Income-tax Rules, 1962 which provides major relief to taxpayers in the matter of claiming Foreign Tax Credit or FTC. The Statement in Form No. 67 can now be enhanced on or before the end of the relevant Assessment Year. The pre-amended Rule required the Foreign Tax Credit claim to be filed before the due date of furnishing the Income Tax Return. The amendment operates retrospectively so that this benefit is available to all Foreign Tax Credit claims which are filed during the current Financial Year. These rules may be called the Income-tax (27thAmendment) Rules, 2022 and which shall come into force from 1st April 2022.
According to Rule 128 (9) of the Income Tax Rule, 1962 the following sub-rule shall be substituted, namely:-
“(9) The statement in Form No. 67 referred to in clause (i) of sub-rule (8) and in clause (ii) of sub-rule (8)the certificate or the statement shall be furnished on or before the end of the Assessment year relevant to the previous year in which the income referred to in sub-rule (1) has been offered to tax or assessed to tax in and the return for such assessment year has been furnished within the time specified under section 139(1) or (4) in India:
Provided that where the return has been furnished under section 139 (8A), the statement in Form No. 67 referred to in clause (i) of sub-rule (8) and in clause (ii) of sub-rule (8) the statement referred to the extent which relates to the income included in the updated return, shall be enhanced on or before the date on which such return is furnished.”
Explanatory Memorandum:
This amendment is effective from the 1st of April 2022 because it applies to all the claims of Foreign Tax Credit furnished during the Financial Year 2022-2023. It is certified that no person is being adversely affected by giving retrospective effect to this rule.
Conclusion
It concluded that the Central Board of Direct Taxes is an official financial action task force unit and which is administered by the Department of Revenue under the Ministry of Finance in India. Originally, there was a board which is known as the Central Board of Revenue that functioned as the apex body of the Income Tax Department. CBDT amends Rule 128 of the Income-tax Rules, 1962 which provides major relief to taxpayers in the matter of claiming Foreign Tax Credit or FTC. The amendment operates retrospectively so that this benefit is available to all Foreign Tax Credit claims which are filed during the current Financial Year.
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