The Central Board of Direct Taxes (CBDT) is a statutory authority entrusted with administering direct tax laws and ensuring effective tax collection in India.
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The CBDT’s role and functions encompass the following:
a) Policy formulation: The CBDT assists the government in formulating direct tax policies and suggesting amendments to tax laws. Its aim is to promote fairness, simplify procedures, and enhance tax compliance.
b) Tax administration: The board assumes the responsibility of administering direct taxes, which include income tax, corporate tax, and wealth tax. It ensures the efficient collection of taxes, enforces tax laws, and handles tax disputes and appeals.
c) Taxpayer services: The CBDT provides guidance to taxpayers regarding tax compliance, facilitates the filing of tax returns, and resolves taxpayer grievances. It endeavors to improve taxpayer education, awareness, and ease of compliance.
d) International taxation: Matters related to international taxation, such as tax treaties, transfer pricing regulations, and the exchange of tax information with foreign jurisdictions, fall under the CBDT’s purview.
e) Anti-tax evasion measures: The board takes initiatives to detect and prevent tax evasion. This includes conducting tax audits, implementing anti-abuse provisions, and promoting the use of technology for data analysis and risk assessment.