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60-586: The Income Tax Department (also referred to as IT Department ; abbreviated as ITD ) is a government agency undertaking direct tax collection of the government of India . It functions under the Department of Revenue of the Ministry of Finance . The Income Tax Department is headed by the apex body Central Board of Direct Taxes (CBDT). The main responsibility of the Income Tax Department

120-552: A bicameral legislature. The term "government agency" or "administrative agency" usually applies to one of the independent agencies of the United States government , which exercise some degree of independence from the President's control. Although the heads of independent agencies are often appointed by the government, they can usually be removed only for cause. The heads of independent agencies work together in groups, such as

180-730: A chief commissioner: At the time of independence in 1947, British India had 17 provinces: Upon the Partition of India into the Dominion of India and Dominion of Pakistan , eleven provinces (Ajmer-Merwara-Kekri, Andaman and Nicobar Islands, Bihar, Bombay, Central Provinces and Berar, Coorg, Delhi, Madras, Panth-Piploda, Orissa, and the United Provinces) joined India, three (Baluchistan, North-West Frontier and Sindh) joined Pakistan, and three ( Punjab , Bengal and Assam ) were partitioned between India and Pakistan. In 1950, after

240-529: A commission, board or council. Independent agencies often function as miniature versions of the tripartite federal government with the authority to legislate (through the issuing or promulgation of regulations), to adjudicate disputes, and to enforce agency regulations. Examples of independent agencies include the Federal Communications Commission (FCC), Federal Reserve Board , U.S. Securities and Exchange Commission (SEC),

300-737: A division of the ministry dealing with matters relating to the levy and collection of direct taxes. The CBDT is headed by a chairman and also comprises six members, all of whom are ex officio special secretaries to the government of India. The chairman and members of the CBDT are selected from the Indian Revenue Service (IRS), whose members constitute the top management of the IT Department. The chairman and every member of CBDT are responsible for exercising supervisory control over specialised functional categories at field offices of

360-719: A government agency include the British Navy Board , responsible for ships and supplies, which was established in 1546 by King Henry VIII and the British Commissioners of Bankruptcy established in 1570. From 1933, the New Deal saw growth in U.S. federal agencies, the " alphabet agencies " as they were used to deliver new programs created by legislation, such as the Federal Emergency Relief Administration . From

420-432: A legislative power existed in such places. The same two kinds of management applied for districts. Thus Ganjam and Vizagapatam were non-regulation districts. Non-regulation provinces included: At the turn of the 20th century, British India consisted of eight provinces that were administered either by a governor or a lieutenant-governor. The following table lists their areas and populations (but does not include those of

480-429: A much wider significance than wealth. According to him, the power of the government depended upon the strength of its treasury. He stated: "From the treasury comes the power of the government, and the earth, whose ornament is the treasury, is acquired by means of the treasury and army." In Raghuvamsh , Kalidas , eulogising King Dalip, said, "it was only for the good of his subjects that he collected taxes from them just as

540-484: A small part of Burma, and by 1886, almost two thirds of Burma had been made part of British India. This arrangement lasted until 1937, when Burma was reorganized as a separate British colony. British India did not apply to other countries in the region, such as Sri Lanka (then Ceylon ), which was a British Crown colony , or the Maldive Islands , which were a British protectorate . At its greatest extent, in

600-520: Is a key duty of ITD to ensure constitutionally guided political economy . One measure to combat aggressive tax avoidance is the general anti avoidance rule (GAAR) . Taxation has been one of the key function of the sovereign state since ancient times. In Manusmriti , the Manu stated that the king has the sovereign power to levy and collect tax according to sastras. लोके च करादिग्रहणो शास्त्रनिष्ठः स्यात् । — Sandeep Baldi, Shyam Nagar 128, Manusmriti (It

660-567: Is a part of the Department of Revenue, Ministry of Finance . The CBDT provides inputs for the policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the IT Department. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex officio capacity also function as

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720-523: Is available at almost all Income Tax Department offices across the country. Launched in 2006 by the Income Tax Department, the Tax Return Preparer Scheme assists small and marginal taxpayers in preparing and filing their tax returns by creating a company of ‘Tax Return Preparers’. Tax Return Preparers are experts in income tax law and in filing of income tax returns. They can charge a maximum fee of Rs. 250, or sometimes nothing. Over

780-577: Is being implemented by the Income Tax Department. The Income Tax Department is a leader in implementing Sevottam, which is certification of quality of public service delivery in India. The term Sevottam comes from the Hindi words Seva and Uttam and supposedly means excellence in service delivery. It involves the identification of the services delivered to the citizens, quality of service, its objective, improvement of quality, by using innovative methods for developing business process and more informative with

840-407: Is in consonance with sastras to collect taxes from citizen.) In Bodhayana Dharmasutras, it is mentioned that the king received 1/6th of income from his subjects, which was legally termed as tax. In lieu of this tax, the king had a duty to protect his subjects. According to Kautilya 's Arthashastra – an ancient treatise on the study of economics, the art of governance and foreign policy – artha had

900-619: Is received after the lapse of the time period provided by the assessing officer, assessment is made under section 144. Such assessments are called "scrutiny assessments." The department can survey any business premises during the time such place is open for business for physical verification of records and other valuables. Section 133A of the Income Tax Act 1961 provides the department to conduct surveys. The department can search residential and business premises of any taxpayer to check records and valuables to ensure that no evasion of tax

960-798: Is taking place. Section 132 of the Income Tax Act, 1961 provides the department the power to conduct search and seizure. Both the survey action and the search and seizure action are known in the general parlance as "raids." The finance ministry instructed all revenue intelligence agencies to join the crackdown on forex traders, hawala operators and jewellers besides tracking movement of demonetised currency notes. Income Tax departments raided various illegal tax-evasive businesses in Delhi, Mumbai, Chandigarh, Ludhiana and other cities that traded with demonetised currency. The Enforcement Directorate issued several FEMA notices to forex and gold traders. Large sum of cash in defunct notes were seized in different parts of

1020-684: Is to enforce various direct tax laws, most important among these being the Income-tax Act, 1961 , to collect revenue for the government of India. It also enforces other economic laws such as the Benami Transactions (Prohibition) Act, 1988 , and the Black Money Act, 2015 . The Income Tax Act, 1961, has a wide scope and empowers ITD to levy tax on the income of individuals , firms , companies , local authorities , societies , or other artificial juridical persons . Thus,

1080-671: The Battle of Buxar , the Company obtained the Diwani of Bengal, which included the right to administer and collect land-revenue (land tax) in Bengal , the region of present-day Bangladesh, West Bengal, Jharkhand and Bihar beginning from 1772 as per the treaty signed in 1765. By 1773, the Company obtained the Nizāmat of Bengal (the "exercise of criminal jurisdiction") and thereby full sovereignty of

1140-607: The Department of the Treasury . Most federal agencies are created by Congress through statutes called " enabling acts ", which define the scope of an agency's authority. Because the Constitution does not expressly mention federal agencies (as it does the three branches), some commentators have called agencies the "headless fourth branch" of the federal government. However, most independent agencies are technically part of

1200-626: The Indian Empire . India was divided into British India, regions that were directly administered by the British, with acts established and passed in the British parliament, and the princely states , ruled by local rulers of different ethnic backgrounds. These rulers were allowed a measure of internal autonomy in exchange for recognition of British suzerainty . British India constituted a significant portion of India both in area and population; in 1910, for example, it covered approximately 54% of

1260-750: The NITI Aayog , which is chaired ex officio by the Prime Minister. Russia has had many government agencies throughout its history. The USSR had the secretive KGB . Today, Russian government agencies such as the FSB , FSO , and the GRU use Spetsnaz or other masked operators for any missions. Other organizations include Kremlin and presidential security. The Government agencies in Sweden are State controlled organizations who act independently to carry out

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1320-699: The National Labor Relations Board (NLRB) and the Federal Trade Commission (FTC). A broader definition of the term "government agency" also means the United States federal executive departments that include the President's cabinet-level departments and their sub-units. Examples of these include the Department of Energy (DOE) and the Internal Revenue Service (IRS), which is a bureau of

1380-616: The Parliament of the United Kingdom , Scottish Parliament or the Welsh Parliament . The Congress and President of the United States delegate specific authority to government agencies to regulate the complex facets of the modern American federal state . Also, most of the 50 U.S. states have created similar government agencies. Each state government is similar to the national government, with all but one having

1440-413: The annual finance acts instead of in the basic enactment. Again, the new Income-tax Act came in 1939. The 1922 act was amended not less than twenty nine times between 1939 and 1956. A tax on capital gains was imposed for the first time in 1946, although the concept of ‘capital gains’ has been amended many times by later amendments. In 1956, Mr. Nicholas Kaldor was given the responsibility of investigating

1500-478: The governor general on 24 July 1860, and came into effect immediately. It was divided into 21 parts consisting of no less than 259 sections. Income was classified under four schedules: i) income from landed property; ii) income from professions and trade; iii) income from securities, annuities and dividends; and iv) income from salaries and pensions. Agricultural income was subject to tax. Subsequently, many laws were brought to streamline income tax laws. For example,

1560-540: The 1980s, as part of New Public Management , several countries including Australia and the United Kingdom developed the use of agencies to improve efficiency in public services. Administrative law in France refers to autorité administrative indépendante (AAI) or Independent Administrative Authorities. They tend to be prominent in the following areas of public policy; Independent Administrative Authorities in France may not be instructed or ordered to take specific actions by

1620-569: The Centralised Processing Center in Bengaluru on the basis of the information provided by the taxpayer. Such automatic processing of returns is called as "summary assessment" and is carried out in accordance with sub-section (1) of section 143 of the Income Tax Act, 1961. After the notices mentioned in points (1) and (2) above are complied with, assessment is made under sub-section (3) of section 143. When no compliance

1680-618: The East India Company's victories at the Battle of Plassey (1757), and Battle of Buxar (1764)—both within the Bengal Presidency established in 1765—and the abolition of local rule (Nizamat) in Bengal in 1793, the company gradually began to formally expand its territories across India . By the mid-19th century, and after the three Anglo-Maratha Wars and the four Anglo-Mysore Wars , the East India Company had become

1740-537: The IT Department has a very low conviction rate. The Income Tax Department has been alleged to have been used to target people and organizations critical of the government. Government agency A government agency may be established by either a national government or a state government within a federal system. Agencies can be established by legislation or by executive powers. The autonomy, independence, and accountability of government agencies also vary widely. Early examples of organizations that would now be termed

1800-794: The IT Department. Various functions and responsibilities of the CBDT are distributed amongst the chairman and six members, with only fundamental issues reserved for collective decision by the CBDT. The areas for collective decision by the CBDT include policy regarding discharge of statutory functions of the CBDT and of the union government under the various direct tax laws. At present Income Tax Department (ITD) field offices are divided into 18 regions with territorial jurisdiction and one region for international taxation. As required for efficient and effective administration, these regions have some administrative autonomy to carry out duties assigned by CBDT. Directorates are meant to take responsibility of specialised functions. There are 10 specialised directorates within

1860-523: The Income Tax Department (ITD) is run through a statutory body, the Central Board of Direct Taxes (CBDT) , at the apex level and 18 territory-based regional headquarters at the field offices level. Besides these are 10 specialised directorates within the Income Tax Department, most extensive and famous among these being the Directorate of Investigation. The Central Board of Direct Taxes (CBDT)

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1920-441: The Income Tax Department influences businesses, professionals, NGOs, income earning citizens, and local authorities, among others. The act empowers the Income Tax Department to tax international businesses and professionals and therefore ITD deals in all matters of double taxation avoidance agreements and various other aspects of international taxation such as transfer pricing . Combating tax evasion and tax avoidance practices

1980-414: The Income Tax Department, most extensive and famous among these being Directorate of Investigation. The Income Tax Department of the government of India is a leader in good governance. Since large portion of population interacts with department on a yearly basis hence good governance by ITD has improved citizen satisfaction with government functioning. A very well known model of good governance, Sevottam ,

2040-659: The Indian tax system in light of the revenue requirement of the second five-year plan (1956–1961) . He submitted an exhaustive report for a coordinated tax system and therefore, the result was the enactment of several taxation acts, viz., the wealth-tax Act 1957 , the Expenditure-tax Act, 1957 and the Gift-tax Act, 1958 . The Direct Taxes Administration Enquiry Committee, under the chairmanship of Shri Mahavir Tyagi, submitted its report on 30 November 1959, and

2100-754: The Madras Presidency (or the Presidency of Fort St. George), the Bombay Presidency, and the Bengal Presidency (or the Presidency of Fort William)—each administered by a governor. After Robert Clive 's victory in the Battle of Plassey in 1757, the puppet government of a new Nawab of Bengal , was maintained by the East India Company. However, after the invasion of Bengal by the Nawab of Oudh in 1764 and his subsequent defeat in

2160-557: The Super-Rich Tax was introduced in 1918, and the new Income-tax Act was passed in 1918. But most important among all these were the Income-tax Act of 1922. This act of 1922 marked an important change from the act of 1918 by shifting the administration of the income tax from the hands of the provincial government to the central government . Another remarkable feature of this act was that the rates were to be enunciated by

2220-595: The administrative divisions of British governance on the Indian subcontinent . Collectively, they have been called British India . In one form or another, they existed between 1612 and 1947, conventionally divided into three historical periods: "British India" did not include the many princely states which continued to be ruled by Indian princes, though by the 19th century under British suzerainty —their defence, foreign relations, and communications relinquished to British authority and their internal rule closely monitored. At

2280-466: The area and included over 77% of the population. In addition, there were Portuguese and French exclaves in India. Independence from British rule was achieved in 1947 with the formation of two nations, the Dominions of India and Pakistan , the latter including East Bengal , present-day Bangladesh . The term British India also applied to Burma for a shorter time period: beginning in 1824,

2340-422: The company established its first factory at Hoogly in 1640. Almost a half-century later, after Mughal Emperor Aurengzeb forced the company out of Hooghly for its tax evasion, Job Charnock was tenant of three small villages, later renamed Calcutta , in 1686, making it the company's new headquarters. By the mid-18th century, the three principal trading settlements including factories and forts, were then called

2400-803: The country. In Chhattisgarh liquid cash worth of ₹ 4.4 million (US$ 53,000) was seized. In December 2016, the Income Tax department received more than 4000 emails, on black money holders, in India, within 3 days, when Income Tax Department, issued in public notice an email to report black money. Huge amounts of cash in the form of new notes were seized all over the country after the demonetisation. In December 2016, over ₹4 crore in new ₹2000 notes were seized from four persons in Bangalore, ₹33 lakh in ₹2000 notes were recovered from Manish Sharma, an expelled BJP leader in West Bengal, and ₹1.5 crore

2460-492: The defeat of Tipu Sultan in the Fourth Anglo-Mysore War more of his territory was annexed to the Madras Presidency. In 1801, Carnatic , which had been under the suzerainty of the company, began to be directly administered by it as a part of the Madras Presidency. By 1851, the East India Company's vast and growing holdings across the sub-continent were still grouped into just four main territories: By

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2520-438: The dependent native states): During the partition of Bengal (1905–1912), a new lieutenant-governor's province of Eastern Bengal and Assam existed. In 1912, the partition was partially reversed, with the eastern and western halves of Bengal re-united and the province of Assam re-established; a new lieutenant-governor's province of Bihar and Orissa was also created. In addition, there were a few provinces that were administered by

2580-639: The early 20th century, the territory of British India extended as far as the frontiers of Persia in the west; Afghanistan in the northwest; Nepal in the north, Tibet in the northeast; and China, French Indochina and Siam in the east. It also included the Aden Province in the Arabian Peninsula . The East India Company , which was incorporated on 31 December 1600, established trade relations with Indian rulers in Masulipatam on

2640-698: The east coast in 1611 and Surat on the west coast in 1612. The company rented a small trading outpost in Madras in 1639. Bombay, which was ceded to the British Crown by Portugal as part of the wedding dowry of Catherine of Braganza in 1661, was in turn granted to the East India Company to be held in trust for the Crown. Meanwhile, in eastern India , after obtaining permission from the Mughal Emperor Shah Jahan to trade with Bengal,

2700-671: The executive branch, with a few located in the legislative branch of government. By enacting the Administrative Procedure Act (APA) in 1946, Congress established some means to oversee government agency action. The APA established uniform administrative law procedures for a federal agency's promulgation of rules and adjudication of claims. The APA also sets forth the process for judicial review of agency action. Presidencies and provinces of British India The provinces of India , earlier presidencies of British India and still earlier, presidency towns , were

2760-749: The expanded Bengal Presidency . During the period, 1773 to 1785, very little changed; the only exceptions were the addition of the dominions of the Raja of Banares to the western boundary of the Bengal Presidency, and the addition of Salsette Island to the Bombay Presidency . Portions of the Kingdom of Mysore were annexed to the Madras Presidency after the Third Anglo-Mysore War ended in 1792. Next, in 1799, after

2820-578: The government. The General Secretariat for Macedonia and Thrace ( Greek : Γενική Γραμματεία Μακεδονίας-Θράκης), previously Ministry for Macedonia and Thrace ( Greek : Υπουργείο Μακεδονίας-Θράκης) is a government agency of the Hellenic Republic that is responsible for the Greek regions of Macedonia and Thrace . The term agency in India has several meanings; for example, the Cabinet and

2880-411: The help of information technology. The citizen-centric approach includes the following three components: Ayakar Seva Kendra (ASK; translated as Income Tax Help Centre ) is an integrated model that provides single window system for registration of all applications including those or redressal of grievances as well as receipt of paper return. The assesses can approach ASK and pose all kinds of queries. ASK

2940-565: The outcome in individual cases as well. In addition to the State and its agencies, there are also local government agencies, which are extensions of municipalities and county councils . Agencies in the United Kingdom are either executive agencies answerable to government ministers or non-departmental public bodies answerable directly to parliament or the devolved assemblies of the United Kingdom. They are also commonly known as Quangos . Agencies can be created by enabling legislation by

3000-675: The paramount political and military power in south Asia, its territory held in trust for the British Crown . Company rule in Bengal (after 1793) was terminated by the Government of India Act 1858 , following the events of the Bengal Rebellion of 1857 . Henceforth known as British India, it was thereafter directly ruled as a colonial possession of the United Kingdom , and India was officially known after 1876 as

3060-771: The parliament Secretariat describes itself as a " nodal agency for coordination amongst the ministries of the Govt. of India". Most notably as an international feature, what appear to be independent agencies ( or apex agencies ) include some that have active roles for Ministers: such as, the National Security Council , the Medical Council of India , the Pharmacy Council of India (PCI), the Indian Council of Agricultural Research , and

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3120-416: The policies of the Government of Sweden . The Ministries are relatively small and merely policy-making organizations, allowed to control agencies by policy decisions but not by direct orders. This means that while the agencies are subject to decisions made by the Government, Ministers are explicitly prohibited (so-called ban on ministerstyre ) from interfering with the day-to-day operation in an agency or

3180-438: The recommendations made therein took shape of the Income Tax Act, 1961. The 1961 act came in to force with effect from 1 April 1962 by replacing the Indian Income Tax Act, 1922, which had remained in operation for 40 years. The present law of income tax is governed by the Income Tax Act, 1961 , which has 298 sections and four schedules and is applicable to whole of India, including the state of Jammu and Kashmir. Administration in

3240-453: The state of Gujarat ), and this became the company's first headquarters town. It was followed in 1611 by a permanent factory at Machilipatnam on the Coromandel Coast , and in 1612 the company joined other already established European trading companies in Bengal in trade. However, the power of the Mughal Empire declined from 1707, first at the hands of the Marathas and later due to invasion from Persia (1739) and Afghanistan (1761); after

3300-409: The sun draws moisture from the earth to give it back a thousand time." The 19th century saw the establishment of British rule in India. Following the mutiny of 1857 , the British government faced an acute financial crisis. To fill up the treasury, the first Income-tax Act was introduced in February 1860 by James Wilson, who became British-India's first finance minister . The act received the assent of

3360-440: The time of Indian Independence, in 1947 , there were officially 565 princely states, a few being very large although most were very small. They comprised a quarter of the population of the British Raj and two fifths of its land area, with the provinces comprising the remainders. In 1608, the Mughal Emperor Farrukhsiyar issued a royal farman to the East India Company to establish a small trading settlement at Surat (now in

3420-434: The time of the Indian Rebellion of 1857 , and the end of Company rule, the developments could be summarised as follows: The British Raj began with the idea of the presidencies as the centres of government. Until 1834, when a General Legislative Council was formed, each presidency under its governor and council was empowered to enact a code of so-called 'regulations' for its government. Therefore, any territory or province that

3480-569: The years income tax return filing has been made more simple, convenient, and smart through use of technology. This includes following: Taxation law is not only very complex as it requires specialised knowledge and expertise to implement, but also it necessitates various kinds of deterrent actions to ensure compliance by taxpayers. Assessment is done to ensure correct estimation of total taxable income of an assessee (i.e. taxpayer) and it determines amount of tax to be payable by (or to be refunded to) assessee. Most income tax returns filed are processed by

3540-482: Was added by conquest or treaty to a presidency came under the existing regulations of the corresponding presidency. However, in the case of provinces that were acquired but were not annexed to any of the three presidencies, their official staff could be provided as the governor-general pleased, and was not governed by the existing regulations of the Bengal, Madras, or Bombay presidencies. Such provinces became known as 'non-regulation provinces' and up to 1833 no provision for

3600-511: Was seized in Goa. 900 notes of the new ₹2000 denomination were seized from a BJP leader in Tamil Nadu. Around ₹10 crore in new ₹2000 notes were seized in Chennai. As of 10 December 2016, new notes worth ₹242 crore were seized by the Income Tax Department. The Income Tax department conducted raids and surveys in various states in separate cases related to alleged tax evasion, violation of FCRA violation and illicit funding of registered unrecognised political parties. The government data reveals that

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