Income Tax Authorities

Income Tax is a direct tax and is administrated by the

Central Board of Direct Taxes ( CBDT) which directly
comes under the purview of Ministry of Finance,
Government of India.
 Central Board Of Direct Taxes

•I is a statutory body constituted under the Central Board of

Revenue Act, 1963
• It consist of number of members appointed by the central
Government for the performance of duties, as may be
entrusted to the board from time to time.
• The entire Income tax department is to be looked after by the
board. It has to perform the functions of administration,
supervision and control of entire income tax structure in India.
• Its jurisdiction is whole of India.
 POWERS:
The Income Tax Act provides following few powers to
the Board:
1. The board has the power to declare any association as a Company under the provisions of Section 2(17).
2. The board has the authority to determine the jurisdiction of various authorities mentioned in the Act.
3. The board will be empowered to issue directions or instructions in respect of levy of penalty under section
271C or 271CA for failure to deduct or collect tax at source.
4. The board can issue directions for the exercise of powers and performance of the functions by all or any of
these authorities.
5. The board may authorize different powers to different officers in the hierarchy.
6. To carry out all the provisions of the act the Board makes rules for whole of India.
7. The Board is empowered to issue general or specific circulars or orders which are necessary for the proper
and efficient management of the work of assessment and collection of revenue.
8. The CBDT has the authority Taxation Laws Act 1975 to make rules regarding maintenance of accounts and
documents required for assessment of income taxes.
 PRINCIPAL DIRECTOR GENERAL/PRINCIPAL CHIEF
COMMISSIONER/DIRECTOR GENERAL/CHIEF COMMISSIONER
OF INCOME TAX:

•APPOINTMENT: Appointed by the Central

Government.
•JURISDICTION: Decided by the CBDT based on the
area, persons, incomes and cases.
POWERS:

1. PDG/PCC/DG/CC-IT can authorize a Deputy Commissioner to make use of

(exercise) the powers of an Assessing Officer in respect of a person, case,
income or an area.
2. These authorities may be empowered by the board to appoint income tax
authorities below the rank of an Assistant Commissioner.
3. These authorities have the power to exercise the powers of Assessing officer,
in case he has reason to suspect that any income is being concealed or is
likely to be concealed by an assessee coming within his jurisdiction.
4. The directors are empowered to issue directions to the Assessing Officers and
such instructions are issued for their guidance and are binding on them.
 PRINCIPAL DIRECTOR/PRINCIPAL COMMISSIONER/COMMISIONER/DIRECTORS/ADDITIONAL COMMISSIONER/ADDITIONAL DIRECTORS OF INCOME-
TAX:

• APPOINTMENT: Appointed by the Central Government.

• JURISDICTION: Decided by the CBDT based on the area, persons, incomes and cases.
• POWERS:
1. Under the directions of the board, a Commissioner may exercise the powers of an assessing
officer.
2. A Commissioner has the authority to transfer any case from one or more assessing officers to
any other assessing officers.
3. The commissioner has been empowered to grant approval for any order issued by the
Assessing Officer.
4. The commissioner has the power to revise an order passed by Assessing Officer, if in his
opinion is against the interest of the revenue collection.
 JOINT COMMISSIONER/JOINT DIRECTORS OF
INCOME TAX:

• APPOINTMENT: Appointed by the Central Government.

• JURISDICTION: Decided by the CBDT based on the area, persons,
incomes and cases.
• POWERS:

1. He is empowered to levy additional income tax on companies in which

people are not substantially interested.
2. He is authorized by the board to exercise the powers of an assessing officer.
3. He has the power to cancel the registration of a firm which is not a genuine
firm.
 ASSESSING OFFICER
(DEPUTY COMMISSIONER/ASSISTANT COMMISSIONER/
INCOME TAX OFFICER):

• The Assessing Officer is the primary authority to initiate assessment

proceedings and make assessment. He is the only authority to collect tax. He is
the authority which comes into contact with the public.
• JURISDICTION:

a) Decided by the CBDT

b) Instructions by DG/CC/C-IT.
c) Concurrent Jurisdiction.
d) Dispute regarding Jurisdiction.
 POWERS:
1. Power of Search and Seizure.
2. Power of Assessment.
3. Power to call for information.
4. Power of Survey.
5. Power to inspect Registers of Companies.

 INCOME TAX INSPECTOR:

APPOINTMENT: Appointed by the CC or C-IT and are subordinate to Assessing Officers.They assist the AO’s in
performance of their duties.