Income Tax Department

Understanding the Income Tax Department

The Income Tax Department is a part of the Indian government, and it handles all activities related to levying and collecting income tax. This department assists the authorities in collecting revenue from its citizens and maintaining a record of all relevant data.

The ITD full form is Income Tax Department. With the help of ITD, the government can focus on administration and conducting development projects to promote the nation's overall growth. The ITD also enforces the laws regarding income tax, ensuring that all earning individuals and organisations file their ITR on time.

History of ITD in India

Under the Income Tax Act, 1922, the Income Tax Department in India was established for the first time. It contained all the provisions for making a proper system to collect tax from the people earning in India. Then, in 1924, the government passed the Central Board of Revenue Act, and the board was formed to handle the administrative aspects of the IT Act.

Fast forward to 2009, a Centralized processing center was established to handle the paperwork and processing of electronically filed ITRs. Then, to eliminate this hassle, the ITD launched its IT e-filing portal in 2021, which makes the whole process of filing returns digital.

Roles and Responsibilities of ITD

The duties of the Income Tax Department are as follows:

• Income Tax Department works to facilitate the tax collection process and manage the direct taxes in India effectively.
• It also makes the laws and policies regarding direct taxes to smooth the implementation nd application process.
• It addresses the concerns of taxpayers and provides services to facilitate convenient compliance.
• It also helps educate taxpayers about their rights and duties regarding taxes.
• The ITD also advises the government on the impact of direct taxation on India's economy.