The Income Tax Department also referred to as the IT Department, it is a government agency in charge of monitoring the income tax collection by the Government of India.It functions under the Department of Revenue of the Ministry of Finance system. It is also responsible for administering following direct taxation acts passed by the Parliament of India.
The Income-tax Act, 1961.
Expenditure Tax Act, 1987.
Various Finance Acts Passed Every Year in Budget Session.
The IT Department is also responsible for enforcing the Double Taxation Avoidance Agreements and deals with various aspects of international taxation such as Transfer Pricing or rules. Finance Act, 2012 seeks to grant the Income Tax Department or system powers to combat aggressive, Tax avoidance by enforcing General Anti Avoidance Rules.
They include general policy relating to:
Structure and Set up of the Income Tax Department.
Procedures and Methods of work of the CBDT.
Measures for disposal of assessments, prevention, a collection of taxes, and detection of tax evasion and tax avoidance.
Recruitment, training and all other matters relating to service conditions and career prospects of all personnel of the Income-tax Department system.
Laying down of fixing and targets of priorities for disposal of assessments and collection of taxes and other related matters.
Also, Write off of tax demand exceeding Rs.25 lakhs in each case.
Policy regarding grant of appreciation and rewards certificates.