CBDT and Income Tax Return Forms

Context: CBDT notifies Income-tax Return Forms for assessment year 2023-24

Central Board of Direct Taxes (CBDT):

• It is a statutory body established as per the Central Board of Revenue Act, 1963.
• It is India’s official financial action task force unit.
• It is administered by the Department of Revenue under the Ministry of Finance.
• At present, the CBDT has six members
• Ex-officio members of the Board also function as a division of the Ministry of Finance

Functions of the CBDT:

• Oversight of the Internal Revenue Service as a whole.
• Suggestions for the tax rates to be changed.
• In accordance with government policies, planning changes to the taxes structure of India.
• It is proposed that direct tax legislation be amended.
• It is in charge of the collection and levying of direct taxes.

Income Tax Return:

• Income Tax Returns, often known as ITRs, are forms used to declare net tax liabilities, claim tax deductions, and report gross taxable income. Individuals who make a specific amount of money are required to file IT returns.
• Income Tax Return Forms are notified by CBDT

Source:    All India Radio

Previous Year Questions

Q.1) Consider the following statements:

1. Tight monetary policy of US Federal Reserve could lead to capital flight.
2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings (ECBs).
3. Devaluation of domestic currency decreases the currency risk associated with ECBS.

Which of the statements given above are correct? (2022)

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Q.2) With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? (2022)

1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3