The Central Board of Direct Taxes (CBDT) regulates the income tax department in India. It is a part of the Department of Revenue while operating directly under the Ministry of Finance. The Central Board of Direct Taxes (CBDT) handles all matters related to direct taxes in India since 1st January,1964. The Central Board of Revenue Act 1963 gives CBDT the authority to regulate the entire direct tax matters in the country. CBDT is also responsible for policy making and planning of the direct taxes in the country. The administration of the direct tax laws also comes under the authority of the Central Board of Direct Taxes.
The revenue generated from property taxation depends on two factors – tax rate and tax base. The rate of taxation is determined from the rates bylaw. The policies taken by the Central Board of Direct Taxes are based on the need to maintain a balance between the taxpayers’ rights and First Nations’. The CBDT faces some challenge in order to maintain fairness, equity and justice to the taxpayers.
The CBDT evaluates tax rates from time to time. The major purpose behind this is to establish some standards in order to protect the integrity of First Nation taxation system. More than 5% tax rates increase is based on the factors such as – special projects, changes in assessment methods, excessive increase of local services costs and the incremental growth.
The Capital Markets Division of the Department of Economic Affairs handles the capital markets and securities transactions of the country. The functionalities of Indian financial system is supervised and regulated by two government agencies and they are – The Securities Exchange Board of India (SEBI) and The Reserve Bank of India (RBI). Both these organizations are operational under the Ministry of Finance.
The board also specifies acts related to taxation, narcotics, company affairs, insurance, currency and coinage. The banking laws specified by the board are – laws that govern compulsory savings with Government and Government borrowings, laws that govern voluntary savings with the Government, laws that govern constitutional authorities and other miscellaneous laws.
Last Updated on : 27th June 2013