1. Purpose: The Income Tax Department is a government agency responsible for the collection, administration, and enforcement of income tax laws in India.
2. Administration: It operates under the Central Board of Direct Taxes (CBDT), which is a statutory authority responsible for framing policies and enforcing the Income-tax Act, 1961.
Official Site of Income Tax Department: https://www.incometax.gov.in/
3. Functions: The department's main functions include tax collection, tax assessments, and the prevention of tax evasion.
4. Tax Collection: It collects taxes from individuals, businesses, and other entities based on their income. This includes income from salaries, business profits, capital gains, and other sources.
5. Assessments: The department conducts assessments to verify the accuracy of tax returns filed by taxpayers. It may request additional information or documents to verify income, deductions, and other tax-related claims.
Prevention of Tax Evasion: The department employs various measures to prevent tax evasion, such as conducting raids, surveys, and scrutiny of high-value transactions.
Taxpayer Services: Apart from tax collection and enforcement, the department also provides taxpayer services, including assistance in filing tax returns, resolving tax-related queries, and facilitating tax refunds.
Online Services: With the advancement of technology, the Income Tax Department has introduced several online services, such as e-filing of tax returns, online payment of taxes, and digital verification of documents.
Compliance: Taxpayers are required to comply with tax laws, including timely filing of returns, payment of taxes, and maintaining proper records.
Penalties and Prosecution: Non-compliance with tax laws can lead to penalties, fines, and prosecution. The department has the authority to impose penalties and take legal action against tax evaders.