Central Board of Direct Taxes

Why is in news? Govt extends tenure of Central Board of Direct Taxes chairman Nitin Gupta till June 2024

The Union government has extended the tenure of Nitin Gupta, the incumbent chairman of the Central Board of Direct Taxes (CBDT), till June 30, 2024

The nine-month extension for Gupta came on the day when he was scheduled to retire and demit office. As per the Centre's notification, his service period has been extended “on a contract basis".

The government order said the Appointments Committee of the Cabinet (ACC) has approved the reappointment of Gupta as the CBDT Chairman.

CBDT:

It is a statutory authority functioning under the Central Board of Revenue Act, 1963.

The CBDT is a part of the Department of Revenue in the Ministry of Finance.

Functions:

Its functions include formulation of policies, dealing with matters relating to levy and collection of direct taxes, and supervision of the functioning of the entire Income Tax Department.

CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation in tune with the policies of the Government.

Historical Background:

The Central Board of Revenue, as the Department’s 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.

The CBDT is headed by Chairman and also comprises of six members, all of whom are ex-officio Special Secretary to the Government of India.