About CBDT
- The Central Board of Direct Taxes (CBDT) is the statutory apex body in India responsible for framing policies and administering direct tax laws through the Income Tax Department.
- Establishment: Formed on January 1, 1964, under the Central Board of Revenue Act, 1963.
- Operating under the Department of Revenue within the Ministry of Finance, Government of India, the board handles taxes such as income tax and corporate tax.
Structure
- Leadership: Headed by a Chairperson and includes six specialized members (such as Member for Income Tax, Legislation, and Administration).
- The CBDT deals exclusively with direct taxes. Indirect taxes such as GST, Customs, and Excise are managed separately by the Central Board of Indirect Taxes and Customs (CBIC)
Functions of CBDT
- Policy & Law Making: Formulates direct tax policies and proposes legislative changes to tax laws, tax slabs, and rates under the Income Tax Act, 1961.
- Tax Administration: Oversees the collection of direct taxes, primarily Personal Income Tax and Corporate Tax.
- Departmental Oversight: Exercises administrative supervision over the entire Income Tax Department.
- Anti-Evasion & Faceless Taxing: Drives tech-led initiatives like the Faceless Assessment Scheme, automated risk profiling, and data-sharing agreements to enhance tax compliance.
Conclusion
The CBDT serves as the apex statutory authority driving India’s direct tax policy, balancing revenue collection with modern administrative reforms. As it leverages technology like AI and faceless assessments to curb evasion, ensuring transparent governance and taxpayer trust remains central to its evolving mandate.
| This concept has been discussed elaborately in the following article: Parliamentary Panel Flags ‘Punitive’ Direct Tax Regime & Issues in Income Tax Implementation |