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Income Tax Department - Wikipedia
Income Tax Department - Wikipedia
Department
The Income Tax Department (also referred to as IT Department or 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.[5] Income Tax Department is headed by the apex body
Central Board of Direct Taxes (CBDT). Main responsibility of Income Tax Dept. is to enforce
various direct tax laws, most important among these being the Income-tax Act, 1961, to collect
revenue for Government of India. It also enforces other economic laws like the Benami
Transactions (Prohibition) Act, 1988[6] and the Black Money Act, 2015.[7]
Income Tax Department
आयकर विभाग
Agency overview
Formed 1860[1][2]
The Income Tax Act, 1961 has wide scope and empowers ITD to levy tax on income of individuals,
firms, companies, local authorities, societies, or other artificial juridical persons.[8] Therefore,
Income Tax Department influences businesses, professionals, NGOs, income earning citizens,
and local authorities among others. The Act empowers 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 is key duty of ITD to ensure
constitutionally guided political economy. One measure to combat aggressive tax avoidance is
General Anti Avoidance Rules (GAAR).[9]