Important Facts For Prelims
No Merger of CBDT and CBIC
- 11 Jul 2020
- 2 min read
Why in News
Recently, the Central government has clarified that it has no proposal to merge the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC).
- The clarification came after the news appeared in certain sections of media that the government was considering to merge the two boards.
Key Points
- The merger proposal was one of the recommendations of the Tax Administrative Reforms Commission (TARC) under the chair of Parthasarathi Shome that submitted its report in 2014.
- However, the proposal was not accepted by the government.
- CBDT and CBIC have been created under the Central Boards of Revenue Act, 1963. Both Boards are part of the Department of Revenue under the Ministry of Finance.
- Central Board of Direct Taxes (CBDT):
- It provides inputs for policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the Income Tax Department.
- Direct Taxes include income tax, corporation tax etc.
- Central Board of Indirect Taxes and Customs (CBIC):
- The Central Board of Excise and Customs (CBEC) was renamed as the Central Board of Indirect Taxes and Customs (CBIC) in 2018 after the roll out of Goods and Services Tax (GST).
- It deals with the tasks of formulation of policy concerning levy and collection of customs, central excise duties, Central Goods & Services Tax (CGST) and Integrated GST (IGST).
