CBDT stands for “Central Board of Direct Taxes.” It is a government agency that is responsible for the administration of direct taxes in India. The Board is a part of the Department of Revenue in the Ministry of Finance, and it is responsible for enforcing the Income Tax Act and the Wealth Tax Act.
The main function of the CBDT is to formulate and implement policies and procedures related to the assessment, collection, and enforcement of direct taxes. This includes issuing guidelines and circulars to taxpayers and tax officials, conducting investigations and audits, and enforcing tax laws and regulations. The CBDT also plays a key role in the development and implementation of new tax laws and regulations, and it works closely with other government agencies, such as the Central Board of Excise and Customs and the Ministry of Corporate Affairs, to ensure the smooth functioning of the tax system.
The CBDT is headed by a Chairman, who is appointed by the Government of India. The Chairman is assisted by six members, who are also appointed by the Government. The Board has a wide network of field offices across the country, which are responsible for implementing the policies and procedures of the Board at the local level. The CBDT also has a number of specialized units and wings, such as the Directorate of Criminal Investigation and the Directorate of Transfer Pricing, which are responsible for specific areas of tax administration.