The Central Board of Direct Taxes (CBDT)
The Central Board of Direct Taxes (CBDT) is the apex body of the Income Tax Department in India. It is responsible for formulating policy, planning, and administering the direct tax laws of India. The CBDT is headed by a Chairman, who is assisted by six members.
The CBDT has its headquarters in New Delhi and has regional offices all over India. The regional offices are responsible for administering the direct tax laws in their respective jurisdictions.
The CBDT has a Number of Functions
including:
- Formulating policy on direct taxes
- Planning and implementing the direct tax laws
- Issuing instructions and guidelines to the Income Tax Department
- Approving major policy decisions
- Overseeing the work of the Income Tax Department
- Conducting surveys and studies on direct taxes
- Representing India in international tax matters
The CBDT is a statutory body under the Central Board of Revenue Act, 1963. It is a part of the Department of Revenue in the Ministry of Finance.
The CBDT plays a vital role in the administration of direct taxes in India. It is responsible for ensuring that direct tax laws are implemented fairly and effectively. The CBDT also plays a role in promoting taxpayer awareness and compliance.
Here are some of the key initiatives taken by the CBDT in recent years:
- Launch of the e-filing portal for filing income tax returns
- Introduction of the faceless assessment system
- Launch of the Taxpayer Charter
- Introduction of the Direct Tax Code (DTC)
The CBDT is committed to making the tax system in India more transparent, efficient, and taxpayer-friendly. It is working hard to achieve this goal through a number of initiatives.
CBDT Order Provides Relief, But Income Tax Department May Reopen Big Old Cases
The Central Board of Direct Taxes (CBDT) has issued an order providing relief to taxpayers who are facing reopening of income tax cases. The order states that the Income Tax Department (ITD) can only reopen cases that are less than six years old, unless there is evidence of fraud or wilful concealment of income.
This is a welcome relief for taxpayers, as the ITD had been reopening cases that were many years old, even in cases where there was no evidence of wrongdoing. This had led to a lot of uncertainty and anxiety among taxpayers.
The Central Board of Direct Taxes (CBDT)
However, the CBDT order does not mean that all old cases are safe. The ITD can still reopen cases that are more than six years old if there is evidence of fraud or wilful concealment of income. This means that taxpayers need to be careful about their tax affairs and ensure that they are reporting all of their income correctly.
The CBDT order is a step in the right direction, but it is important to remember that the ITD still has the power to reopen old cases. Taxpayers should therefore take steps to ensure that their tax affairs are in order and that they are reporting all of their income correctly.
Here are some tips for taxpayers to avoid having their old cases reopened:
- Keep good records of all of your income and expenses.
- Report all of your income, even if it is small.
- File your tax returns on time and accurately.
- If you have any questions about your tax affairs, consult with a tax advisor.
By following these tips, you can help to protect yourself from having your old cases reopened by the ITD.
In addition to the above, taxpayers should also be aware of the following:
- The CBDT order does not apply to cases that are already under appeal.
- The ITD can still reopen cases that are more than six years old if there is a “material or substantial” change in the facts of the case.
- The ITD can also reopen cases that are more than six years old if it is necessary to prevent the taxpayer from benefiting from an avoidance scheme.