Information under section 4(1)(b) of the RTI Act

The particulars of its organisation, functions and duties

The CBDT is a part of Department of Revenue in the Ministry of Finance. On one hand, CBDT provides essential inputs for policy and planning of direct taxes in India, at same time it is also responsible for administration of direct tax laws through the Income Tax Department. 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.

The Central Board of Revenue as the Department apex body 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 the two Boards u/s 3 of the Central Boards of Revenue Act, 1963.

Organisational Structure of the Central Board of Direct Taxes

The Chairman, who is also an ex-officio Special Secretary to Government of India, heads the CBDT. In addition, CBDT has six Members, who are ex-officio Additional Secretaries to Government of India.

  • Member (Income Tax)
  • Member (Legislation and Computerisation)
  • Member (Revenue)
  • Member (Personnel & Vigilance)
  • Member (Investigation)
  • Member (Audit & Judicial)

The Chairman and Members of CBDT are selected from Indian Revenue Service (IRS), a premier civil service of India, whose members constitute the top management of Income Tax Department.

Responsibilities of Chairman and Members, Central Board of Direct Taxes

Various functions and responsibilities of CBDT are distributed amongst Chairman and six Members, with only fundamental issues reserved for collective decision by CBDT. In addition, the Chairman and every Member of CBDT are responsible for exercising supervisory control over definite areas of field offices of Income Tax Department, known as Zones.

Areas For Collective Decision By CBDT

Policy regarding discharge of statutory functions of the CBDT and of the Union Government under the various direct tax laws.

General Policy relating to:

  1. Set up and structure of Income Tax Department;
  2. Methods and procedures of work of the CBDT;
  3. Measures for disposal of assessments, collection of taxes, prevention and detection of tax evasion and tax avoidance;
  4. Recruitment, training and all other matters relating to service conditions and career prospects of all personnel of the Income-tax Department;
  5. Laying down of targets and fixing of priorities for disposal of assessments and collection of taxes and other related matters;
  6. Write off of tax demand exceeding Rs.25 lakhs in each case;
  7. Policy regarding grant of rewards and appreciation certificates.
  8. 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.

Chairman

  • Administrative planning;
  • Transfers and postings of officers in the cadre of Chief Commissioner of Income-tax and Commissioner of Income-tax;
  • All matters relating to foreign training;
  • Public Grievances;
  • Matters dealt with in the Foreign Tax and Tax Research Division, except matters under Section 80-O of the Income-tax Act, 1961
  • All matters relating to tax planning and legislation relating to direct taxes referred to Chairman by Member (L&C)
  • All matters relating to Central and Regional Direct Taxes Advisory Committees and Consultative Committee of the Parliament;
  • Coordination and overall supervision of Board‟s work;
  • Any other matter which the Chairman or any other Member of the Board may consider necessary to be referred to the Chairman;
  • Supervision and Control over Director General of Income Tax (International Taxation).

Member (Income Tax)

  • All matters relating to Income-tax Act, Super Profit-tax, Companies Profit (Sur-tax) Act, and Hotel Receipts Tax Act, except matters that have been specifically allotted to the Chairman or to any other Member;
  • All matters relating to Interest Tax Act, 1974, Compulsory Deposit Act, 1974;
  • Approvals under Section 36(1)(viii) and (viiia) of the Income-tax Act, 1961;
  • Supervision and control over the work of DGIT(Exemption) and DIT (IT), except the work relating to examinations, which is overseen by Member(P&V).

Member (Legislation and Computerisation)

  • All work connected with the reports of various commissions and committees relating to Direct Taxes Administration;
  • All matters of tax planning and legislation relating to various direct taxes and the Benami Transaction (Prohibition) Act, 1988;
  • Monitoring of tax avoidance devices and suggesting legislative remedial action;
  • Computerization of Income Tax Department.
  • Supervision and Control over DGIT (Systems) and DGIT (BPR).

Member (Revenue)

  • All matters relating to Revenue budget, including assigning of budgetary targets among
  • Chief Commissioners of Income Tax throughout the country;
  • Recovery of taxes (Chapter XVII of Income Tax), except part F thereof, sections 179, 281, 281B, 289, Second Schedule and Third Schedule of the Income-tax Act, 1961;
  • Matters relating to departmentalized accounting system.
  • All matters falling under Chapter XIVA, XXA, XXC of the Income-tax Act, 1961;
  • General coordination of the work in the CBDT;
  • Work relating to Directorate of Income Tax (Recovery), Directorate of Income Tax (PR,PP&OL) and Directorate of Income Tax (O&MS);
  • Supervision and control over Chief Engineers (Valuation Cell);
  • All matters relating to widening of tax base;
  • Work relating to Directorate of Income Tax(TDS);
  • All matters concerning Wealth Tax Act, Expenditure Tax Act, Estate Duty Tax and benami Transaction (Prohibition) Act, excluding those relating to prevention and detection of tax avoidance.

Member (Personnel & Vigilance)

  • All Administrative matters relating to Income-tax establishment (except transfers and postings of officers of the level of Chief Commissioner of Income Tax and Commissioner of Income-tax), transfers and posting at the level of Deputy Commissioners and Assistant Commissioner will be made with the approval of the Chairman;
  • All matters relating to deputation of Income Tax officers, Assistant and Deputy Commissioners of Income Tax to ex-cadre posts;
  • All matters relating to training, except foreign training;
  • Vigilance, disciplinary proceedings and complaints against all officers and members of staff (both Gazetted and Non Gazetted);
  • All matters relating to expenditure budget;
  • All matters relating to implementation of official language policy;
  • Office equipments;
  • Office accommodation and residential accommodation for the Income-tax Department;
  • Work relating to Directorate of Income Tax (Income Tax) in matters relating to examination; work relating to DI(Infra.), DG(Vig.), DGIT(HRD) and DGIT(NADT).

Member (Investigation

  • Technical and administrative matters relating to prevention and detection of tax evasion, particularly those falling under Chapter XIIB in so far as they are relevant to the functioning of Directors General of Income-tax (Investigation) and Chief Commissioners of Income Tax (Central), all matters falling under Chapter XIIC, Chapter XIXA, Chapter XXB, Chapter XXI, Chapter XXII, Section 285B, 287, 291, 292 and 292 A of Chapter XXIII of the Income Tax Act, 1961 and corresponding provisions of other Direct Tax Acts;
  • Processing of complaints regarding evasion of tax;
  • All matters relating to administrative approval for filing, dropping or withdrawing of prosecution cases in respect of offences mentioned in Chapter XXII of the Income Tax Act and corresponding provisions in other direct taxes;
  • All technical and administrative matters relating to provisions of sections 147 to 153 (both inclusive) of the Income-tax Act, 1961;
  • Searches, seizures and reward to informants;
  • urvey;
  • Voluntary disclosure schemes;
  • Matters relating to the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976;
  • Work connected with High Denomination Bank Notes (Demonetisations) Act, 1978;
  • Supervision and control over the work of Directors General of Income Tax (Investigation), DGIT (Intelligence) and Chief Commissioners of Income Tax (Central).

Member (Audit & Judicial)

  • All judicial matters under Chapter XX and section 288 of the Income-tax Act, 1961;
  • Matters relating to appointment of Standing Counsels, Prosecution Counsels and Special Counsels for the Income-tax Department before the High Court and Supreme Court;
  • All matters relating to Audit and Public Accounts Committee;
  • All matters falling under section 72A and 80-O of the Income-tax Act, 1961;
  • All matters concerning Wealth-tax Act, Expenditure-tax Act, Estate Duty Act and Benami Transaction (Prohibition) Act, excluding those relating to prevention and detection of tax avoidance;
  • Supervision and control over the work of DGIT (L&R) and DIT (Audit).

There are as many as 8 Directorates as attached offices of CBDT to play a vital role by developing a positive liaison between the field formations and the CBDT. The following Directors General of Income Tax are directly under the administrative control of the Central Board of Direct Taxes:-

  1. Director General of Income Tax (Administration)
  2. Director General of Income Tax (Systems)
  3. Director General of Income Tax (Vigilance)
  4. Director General of Income Tax (Training)
  5. Director General of Income Tax (Legal & Research)
  6. Director General of Income Tax (Business Process Re-engineering)
  7. Director General of Income Tax (Intelligence)
  8. Director General of Income Tax (HRD)

In addition to above there are three more Directorates and also Chief Commissionerates at field level which are as follows:-

  1. DGIT(Investigation)
  2. DGIT(Exemption)
  3. DGIT(International Taxation)
  4. 18 cadre controlling Chief Commissioners of Income Tax

Various Directorates, which are headed by Directors of Income Tax, have been placed under the Director Generals of Income Tax and report through them to the Central Board of Direct Taxes :

  1. The Director General of Income Tax (Administration) supervises the functioning of the following Directorates:-
    • Directorate of Income Tax (PR,PP &OL)
    • Directorate of Income Tax (Inspection & Examination)
    • Directorate of Income Tax (Audit)
    • Directorate of Income Tax (Recovery)
    • Directorate of Income Tax (TDS)
  2. The Director General of Income Tax (Systems) exercises supervision and control over the following Directorates:-
    • Directorate of Income Tax (Systems)
    • Directorate of Income Tax (Organisation & Management Services)
    • Directorate of Income Tax (Infrastructure)
  3. The Director General of Income Tax (Vigilance) is the head of the following four regional Directorates of Income Tax (Vigilance):-
    • Directorate of Income Tax (Vigilance) (North), Delhi
    • Directorate of Income Tax (Vigilance) (South), Chennai
    • Directorate of Income Tax (Vigilance) (East), Kolkata
    • Directorate of Income Tax (Vigilance) (West), Mumbai
  4. The Director General of Income Tax (Training), NADT heads the National Academy of Direct Taxes at Nagpur. The Regional Training Institutes (RTIs) and the Ministerial Staff Training Units (MSTUs) also function under the DGIT (Training).
  5. The Director General of Income Tax (HRD), is the head of Directorate of Income Tax (HRD).

Functions of Director General of Income Tax (Administration)

Supervision and control over the work in the following Directorates:-

  • Directorate of Income Tax (Inspection & Examination)
  • Directorate of Income Tax (Audit).
  • Directorate of Income Tax (PR,PP&OL)
  • Directorate of Income Tax (Recovery)