What Is The Full Form Of IRS In Income Tax?
IRS full form in income tax is Indian Revenue Service. This is an important part of the Indian civil service, which falls under the Ministry of Finance. The IRS is mostly into the collection and administration of direct and indirect taxes all over the country. It has been around in different forms since the 1920s, working under the Department of Revenue. The IRS consists, generally, of two principal parts: one concerned with Income Tax, and another with Customs and Indirect Taxes. These two are composed respectively by the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). They make the policies on taxes and handle cases of tax evasion.
Formation and Structural Functions:
The IRS has changed a lot since it started during British rule when income tax was first introduced in 1860 to deal with money shortages caused by military uprisings. The system formally took shape after India got its independence with the establishment of CBDT and CBIC, evolving through the years to now have elaborate plans for policy formulation, tax collection, and fighting tax evasion. It is now dealing with challenging assignments, such as putting in place the Goods and Services Tax (GST) and controlling illegal goods under Customs Law.
Operational Impact and Contributions:
The IRS has played a key role in increasing the ratio of direct taxes to GDP and improving how well the central government collects taxes. The introduction of GST by the IRS was a huge change in the consolidation of many indirect taxes under one system and has no doubt made tax administration easy and transparent.