What is the full form of CBDT in Income tax?
The CBDT Full Form in Income Tax is Central Board of Direct Taxes. CBDT is one of the important bodies under the Ministry of Finance, Government of India. It mainly lays policies in respect of the assessment and collection of direct taxes in India. Apart from that, the CBDT oversees the working of the entire Income Tax Department.
Structure of the CBDT
It has one CBDT chairman and six IRS officers. With unique roles, each member ensures balanced tax administration.
Connection to Finance Ministry
The Revenue Department of the Ministry of Finance houses the CBDT. This site highlights the CBDT’s government finance administration responsibility.
Income Tax Department oversight:
The CBDT oversees national income taxes. Tax administration is standardized. Income Tax Department receives CBDT tax assessment, collection, and enforcement advice.
Notices and circulars:
The CBDT issues circulars and notifications to explain tax procedures. The explanations help taxpayers understand their rights and duties. The CBDT may issue a circular explaining the tax status of an income or deduction.
Taxpayer compliance promotion:
CBDT actively encourages compliance. These include tax filing simplification and advertising initiatives. CBDT taxpayer education helps individuals file taxes appropriately.
Cut tax evasion:
The CBDT is essential. Many actions are needed to identify and prohibit tax evasion. Data analysis, risk assessment, and audits are possible. CBDT works with other law enforcement to catch tax evaders.