CBDT Full Form

The Central Board of Direct Taxes (CBDT) is the government institution in charge of enforcing India’s direct tax legislation. It is part of the Department of Revenue under the Ministry of Finance. The CBDT was established in 1963, and it has six members: the Chairman, the Deputy Chairman, and four other members. In this article, we will discuss what the CBDT is and what its role is in Indian taxation.

Central Board of Direct Taxes

The Central Board of Direct Taxes (CBDT) is a federal agency that reports to the Ministry of Finance of the Government of India. It is India’s highest policy-making body for increased taxation. The CBDT is responsible for framing policies and procedures related to direct taxation, including income tax, corporate tax, wealth tax, and capital gains tax. It also oversees the administration of these taxes by the Income Tax Department and other subordinate authorities.

The CBDT consists of a Chairman and six Members. The Chairman is appointed by the President of India, while the Members are nominated by the Minister of Finance on the recommendation of the CBDT itself. The term of office of Chairman and Members is three years.

Background of CBDT

The CBDT full form is the Central Board of Direct Taxes. It is a government agency that is responsible for administering the direct tax laws in India. The CBDT was established in 1963 and it has been responsible for several important reforms in the Indian taxation system. Some of these include the introduction of the presumptive income scheme, the rationalization of rates under the Income Tax Act, and more recently, the GST regime. The CBDT is also responsible for the collection and administration of taxes on capital gains and dividends.

What Does The CBDT Do?

The primary functions of the CBDT are to:

• Enforce direct tax laws in India
• Collect taxes on income and capital gains
• Administer and oversee the Income Tax Department and other subordinate authorities
• Frame policies and procedures related to direct taxation
• Review the working of the Income Tax Department
• Conduct studies on direct tax administration and policy matters

The CBDT also plays a role in promoting taxpayer education and awareness. It has launched several initiatives to promote financial literacy among taxpayers, including an online course on income tax filing. The CBDT is also responsible for overseeing the implementation of the Goods and Services Tax (GST) in India.

Conclusion

The Central Board of Direct Taxes (CBDT) is the federal agency in charge of enforcing India’s direct tax legislation. Since its inception in 1963, the CBDT has been responsible for some significant developments in the Indian system of taxation. The CBDT’s principal tasks include enforcing direct tax laws, collecting taxes, and developing a direct taxation policy. The CBDT is also involved in the promotion of taxpayer education and awareness. It has implemented a number of programmes to increase financial awareness among consumers, including an online income tax filing course. The CBDT is also in charge of supervising the implementation of India’s Goods and Services Tax (GST).