What Is The Full Form Of ED In Income Tax?
ED full form in income tax is Enforcement Directorate. This is an important agency in India that deals with economic laws and crimes. It functions under the Department of Revenue in the Ministry of Finance and was set up on May 1, 1956. ED works mostly in the area of money laundering and breaking foreign exchange laws. It ensures compliance with laws such as Foreign Exchange Management Act (FEMA) 1999, and the Prevention of Money Laundering Act (PMLA) 2002.
Roles and Functions:
The ED is tasked with handling cases that break economic laws. Key duties include investigation and taking legal action on violations under FEMA and PMLA, which compromise a range of economic wrongdoings, from the mismanagement of foreign exchange to laundering money. The ED also processes cases under the Fugitive Economic Offenders Act of 2018. The act is meant for those people who avoid legal action by staying outside of India. The agency works across India and is allowed to work in all states by the powers given by FEMA and PMLA. Cases related to FEMA usually are civil, while PMLA is criminal. The ED does not start investigations on its own but must follow up on reports from other agencies or the police.
Organizational Structure:
The head of the ED is the Director of Enforcement. The agency has regional offices in major cities including Mumbai, Chennai, Chandigarh, Kolkata, and Delhi, each led by a Special Director of Enforcement. Besides this, it has several zonal and sub-zonal offices across the country that assist it in operating effectively.