Recently Union Finance Ministry said, India’s net direct tax collections in the financial year 2022-23 have risen to ₹7.45 lakh crore, more than half of the Budget targets. It is an increase of 16.3% over the tax inflows during the corresponding period a year ago.
GS III- Indian Economy
Dimensions of the Article:
- About Direct Tax in India
- About Central Board of Direct Taxes (CBDT)
- Based on provisional data, net personal income tax collections grew 17.35%, rising faster than corporate income tax collections that were up 16.29% net of refunds.
- Securities Transaction Tax (STT) collections combined with personal income tax receipts, grew at a more moderate 16.25%.
- Underlining that direct tax collections continue to register a steady growth, the Ministry said tax refunds had jumped 81% over the preceding year to touch ₹1.53 lakh crore.
About Direct Tax in India
- A direct tax can be defined as a tax that is paid directly by an individual or organization to the imposing entity (generally government).
- A direct tax cannot be shifted to another individual or entity.
- The individual or organization upon which the tax is levied is responsible for the fulfillment of the tax payment.
- The Central Board of Direct Taxes deals with matters related to levying and collecting Direct Taxes and formulation of various policies related to direct taxes.
- A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets, FBT, Gift Tax, Capital Gains Tax, etc.
About Central Board of Direct Taxes (CBDT)
- The Central Board of Direct Taxes (CBDT) is a Statutory Body functioning under the Central Board of Revenue Act, 1963.
- It is official Financial action task force unit.
- CBDT is a part of the Department of Revenue in the Ministry of Finance, Government of India.
Composition of CBDT
- The CBDT Chairman and Members of CBDT are selected from Indian Revenue Service (IRS), a premier civil service of India, whose members constitute the top management of Income Tax Department.
- The Central Board of Direct Taxes consists of a Chairman, and six members that deal with the following:
- Income Tax & Revenue
- Legislation & Computerization
- Audit and Judicial
- Transaction Processing System (TPS) & System
Functions of CBDT:
- CBDT is responsible for administration of the direct tax laws through Income Tax Department.
- The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes.
- CBDT provides essential inputs for policy and planning of direct taxes in India as well.
It deals with matters related to levying and collecting Direct Taxes.
- Formulation of various policies.
- Supervision of the entire Income Tax Department
- Suggests legislative changes in Direct Tax Enactments
- Suggests changes in tax rates
- Proposes changes in the taxation structure in line with the Government policies.
-Source: The Hindu