The Central Government is entitled to issue a notification to exclude any digital assets from the definition of VDA. The Assessing Officer shall prepare a list of cases falling under this parameter with prior administrative approval of Pr. • The Department urges taxpayers, to view their AIS through the e-filing portal and file updated ITRs (ITR-U), wherever necessary. The CBDT Circulars are meant for ensuring proper administration of the statute, they are designed to mitigate the rigours of the application of a particular provision of the statute in certain situations by applying a beneficial interpretation to the provision in question so as to benefit the assessee. Our experts suggest the best funds and you can get high returns by investing directly or through SIP.
Central Board of Direct Taxes (CBDT) – Economy Notes for UPSC Exam!
In this context, Board has decided that notwithstanding anything contained in any circular issued u/s 268A specifying monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/appeals before Supreme Court. Appeals may be filed on merits as an exception to said circular, where Board, by way of special order direct filing of appeal on merit in cases involved in organised tax evasion activity. The Central Board of Direct Taxes (CBDT) has been issuing guidelines from time to time for compounding of offences under the Direct Tax Laws, prescribing the eligibility conditions.
What is the Relation Between CBDT and the Income Tax (IT) Department?
The Income Tax Department was established after the Income Tax Act of 1922, which contained provisions for establishing a proper administrative system to handle income tax collection in India. In India, all activities regarding levying and collection of income tax are handled by the Income Tax Department. It is a part of the Indian Government and helps the authorities collect revenue from its citizens. This helps the latter perform its administrative activities, conduct developmental projects and keep the nation moving on the road of progress. The Central Board of Direct Taxes (CBDT) is the authority vested with the responsibility of the administration of laws related to direct taxes through the Department of Income Tax.
Taxation Of Startups – Angel Tax: Complete Guide
The 2019 DPIIT Notification extended the condition-based exemption to past and proposed issue of shares undertaken by start-up companies. However, it did not provide any relaxation where an addition has been made in relation to Angel tax in an assessment order before issue of 2019 DPIIT Notification i.e., prior to 19 February 2019. But where no such demands are raised or notices are received but assessment orders are yet to be passed, taxpayers can expect relief from angel tax provision by complying with the 2019 DPIIT Notification. If conditions of the 2019 DPIIT Notification are not fulfilled, taxpayers will need to defend their case on merits by justifying the share valuation.
Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law. Yes, the ITD conducts awareness programs, publishes educational materials, and maintains a helpdesk to educate taxpayers about their rights and responsibilities.
It was held in the Supreme Court judgements that the Circulars are not meant for contradicting or nullifying any provisions of the statute. All authorities and all other persons employed in the execution of this Act are obliged to observe and follow such orders, instructions and directions of the CBDT. The Chairman, who also serves as the ex-officio secretary in special relations to the government of India, leads the Central Board of Direct Taxes [CBDT].
The CBDT is the administrative authority for enforcing the direct tax laws comprising personal income tax, corporate tax, wealth tax and excise duty. ► Pursuant thereto and by exercising powers granted to the CBDT under the ITL for proper administration, the CBDT Circular was issued on 7 August 2019 for granting relaxation to start-up companies in relation to the manner of conduct of pending assessments for angel tax and other issues. The ITD offers several digital services, including e-filing of tax returns, Aadhaar-PAN linking, e-assessment, digital communication for notices, and an online grievance redressal system. The CBDT is committed to providing efficient taxpayer services and timely grievance redressal. Initiatives like the Centralized Processing Centre (CPC) for processing income tax returns, the Aaykar Setu mobile app for taxpayer assistance, and the e-Nivaran portal for grievance redressal have been implemented to enhance taxpayer convenience and satisfaction.
Another remarkable feature of this act was that the rates were to be enunciated by the annual finance acts instead of in the basic enactment.[12] Again, the new Income-tax Act came in 1939. The Central Board of Direct Taxes (CBDT) issued Order dated 30 August 2019 for setting-up the cbdt is a statutory authority functioning under the of a dedicated cell for start-ups (“Start-up Cell”) to redress the grievances and address the various issues under Indian Tax Laws (ITL), including angel tax. The CBDT Order is issued in light of the announcement made by the Finance Minister in Budget Speech as also at the press meeting held on 23 August 2019.
- ► At the enactment stage, the exemption is extended to all sub-categories of Category-I AIFs.
- In this context, Board has decided that notwithstanding anything contained in any circular issued u/s 268A specifying monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal (ITAT), High Courts and SLPs/appeals before Supreme Court.
- In case of exceptional cases like, habitual defaulters, based on particular facts and circumstances of each case, prosecution may be initiated only with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers as mentioned in Para 3.
- Earlier, on 5 March 2019, the CBDT issued a Notification to provide exemption from angel tax to start-ups satisfying the prescribed conditions.
- It can also issue directions as to the guidelines, principles or procedures to be followed by other income-tax authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties.
Issue of Merger of Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes (CBIC):
Cases where the amount sought to be evaded or tax on under-reported income is Rs. 25 Lakhs or below, shall not be processed for prosecution except with the previous administrative approval of the Collegium oftwo CCIT/DG IT rank officers as mentioned in Para 3. Cases where non-payment of tax deducted at source is Rs. 25 Lakhs or below, and the delay in deposit is less than 60 days from the due date, shall not be processed for prosecution in normal circumstances. In case of exceptional cases like, habitual defaulters, based on particular facts and circumstances of each case, prosecution may be initiated only with the previous administrative approval of the Collegium of two CCIT/DGIT rank officers as mentioned in Para 3. Moving to digital from the decades-old system of manual scrutiny, the tax department would use data analytics, artificial intelligence, machine learning and other latest tools to ascertain misreporting or evasion.
Understanding the CBDT is crucial for UPSC aspirants as it falls within the scope of the UPSC Syllabus, specifically in the areas of the Indian Economy, Governance, and Taxation. The CBDT plays a significant role in the administration and enforcement of direct taxes in India, making it essential for aspirants to grasp its functions, powers, and structure. UPSC Online Coaching and UPSC Mock Test provide valuable resources for aspirants to enhance their understanding of the CBDT and its significance in the context of the UPSC examination, ensuring comprehensive preparation in areas related to taxation and governance. Furthermore, the Tax Authority shall conduct inquiry or verification for other issues only after obtaining the approval of the supervisory officer. Furthermore, in relation to other issues, assessment proceedings shall be conducted as per the procedure laid down under the ITL.
The department can search residential and business premises of any taxpayer to check records and valuables to ensure that no evasion of tax is taking place. Section 132 of the Income Tax Act, 1961 provides the department the power to conduct search and seizure. When no compliance is received after the lapse of the time period provided by the assessing officer, assessment is made under section 144. At present Income Tax Department (ITD) field offices are divided into 18 regions with territorial jurisdiction and one region for international taxation. As required for efficient and effective administration, these regions have some administrative autonomy to carry out duties assigned by CBDT.
To administer direct taxes to promote equity, transparency and simplicity in tax laws; ensure expeditious redressal of taxpayer grievances and optimize taxpayer services; formulate tax policies and strategies in sync with the economy’s needs, taking into account global best practices. The Central Board of Direct Taxes is the apex body responsible for the administration of direct taxes in India. Through its various functions, powers, and initiatives, the CBDT plays a vital role in formulating tax policies, implementing reforms, and ensuring the efficient collection and assessment of direct taxes in the country. Its efforts contribute significantly to the overall fiscal management and economic development of India. The hierarchical structure of the CBDT ensures a clear division of responsibilities and effective administration of direct taxes in India, covering policy formulation, taxpayer services, legal matters, audit, investigation, and revenue collection.