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Important events affecting the administrative set up in the Income-tax department( 1939- 2014)

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by

Team BAF
in
  • 1939
    • Appellate functions separated from inspecting functions.
    • A class of officers known as AACs came into existence.
    • Jurisdiction of Commissioners of Income tax extended to certain classes of cases and a central charge was created at Bombay.
  • 1940
    • Directorate of Inspection (Income-tax) came into being.
    • Excess Profits Tax introduced w.e.f. 1-9-1939.
  • 1941
    • Income-tax Appellate Tribunal came into existence.
    • central charge created at Calcutta.
  • 1943
    • Special Investigation Branches set up.
  • 1946
    • A few officers of Class-I directly recruited.
    • Demonetisation of high denomination notes made.
    • Excess Profits Tax Act repealed.
  • 1947
    • Business Profits Tax enacted (for the period 1-4-1946 to 31-3-1949).
  • 1951
    • Report of Income-tax Investigation Commission known as Vardhachari Commission received.
    • Voluntary Disclosure Scheme introduced.
  • 1952
    • Directorate of Inspection (Investigation) set up.
    • Inspector of Income-tax declared as an I.T. authority.
  • 1953
    • Estate Duty Act, 1953 came into existence w.e.f. 15-10-1953.
    • Act XXV of 1953 gave effect to the recommendations of Commission appointed under Taxation of Income (Investigation Commission) Act, 1947.
  • 1954
    • Internal Audit Scheme in the Income-tax Department introduced.
    • Taxation Enquiry Commission known as John Mathai Commission set up.
  • 1957
    • The Wealth tax Act, 1957 introduced w.e.f. 1-4-1957.
    • I.R.S.(DT) Staff College started functioning at Nagpur and much later four R.T.Is. stationed at Bombay, Calcutta, Bangalore and Lucknow opened.
  • 1958
    • LI>The Gift-tax Act, 1958 introduced w.e.f. 1-4-1958.
    • Report of Law Commission received.
  • 1959
    • Direct Taxes Administration Enquiry Committee submitted its report.
  • 1960
    • Directorate of Inspection (Research, Statistics & Publications)was set up.
    • Two grades of Inspectors – selection and ordinary grades – merged into one single grade.
  • 1961
    • Direct Taxes Advisory Committee set up – Direct Taxes Administrative Enquiry Committee constituted.
    • Income-tax Act, 1961 came into existence w.e.f. 1-4-1962.
    • Revenue Audit introduced for the first time in the Department.
    • New system for evaluation of work done by Income-tax Officers introduced.
  • 1963, 1964
    • Central Board of Revenue bifurcated and a separate Board for Direct Taxes known as Central Board of Direct Taxes (CBDT)constituted under the Central Board of Revenue Act, 1963.
    • For the first time an officer from the department became Chairman of the CBDT w.e.f. 1-1-1964.
    • The Companies (Profits) Sur -tax Act, 1964 was introduced.
    • Annuity Deposit Scheme, 1964 introduced.
  • 1965
    • Voluntary Disclosure Scheme came into operation.
  • 1966
    • Functional Scheme introduced.
    • Special Recovery Unit created.
    • Intelligence Wing created and placed under the charge of Directorate of Inspection (Investigation).
  • 1968
    • Valuation Cell came into existence in the Income tax Department.
    • Report of rationalisation and simplification of tax structure (Bhoothalingam Committee) received.
    • Administrative Reforms Commission set up.
  • 1969
    • Direct Recruitment to Class II Income-tax Officers made.
    • The post of IAC (Audit) created in the Income-tax Department.
  • 1970
    • The posts of Addl. Commissioner of Income-tax created and abolished after one year.
    • Recovery functions which were hitherto performed by Income- tax Officers, given to Tax Recovery Officers. Prior to that State Government officials exercised the functions of a Tax Recovery Officer.
  • 1971
    • A new cadre of posts known as Tax Recovery Commissioners introduced w.e.f. 1.1.1972.
    • Report of Direct Taxes Enquiry Committee received.
    • Summary Assessment Scheme introduced w.e.f. 1-4-1971.
  • 1972
    • A Special Cell within the Directorate of Inspection (Investigation) created to oversee the cases of big industrial houses.
    • A new cadre of posts known as IAC(Acq.) created and IAC appointed as Competent Authority with the insertion of new Chapter XXA in the Income Tax Act, 1961 on the acquisition of immovable properties in certain cases of transfer to counter evasion of tax.
    • Directorate of Organisation & Management Services (Income- tax) created.
    • The post of I.T.O. (Internal Audit) created.
    • Bradma Scheme in the Income-tax Department introduced.
    • System of Permanent Account Number introduced.
    • Valuation Officers given statutory powers under the Income-tax Act, 1961 and Wealth-tax Act, 1957.
  • 1974
    • Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 introduced.
    • Action Plan for the Income-tax Officers introduced for the first time.
    • Concept of M.B.O introduced.
  • 1975
    • Voluntary Disclosure Scheme for Income and Wealth implemented.
    • Special Cell for dealing with Smugglers’ cases created.
  • 1976
    • Settlement Commission created and Taxation Laws (Amendment) Act,1975 inserted a new Chapter XIXA in the Income Tax Act w.e.f.1-4-1976.
    • Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 introduced w.e.f. 25-1-1976.
    • A new scheme for departmentalization of accounts introduced.
    • Chokshi Committee submitted its interim report.
  • 1977
    • A new cadre of posts known as IAC (Assessment) created.
  • 1978
    • Appellate functions given to a new cadre of Commissioners known as Commissioner (Appeals).
    • Directorate of Inspection (Recovery) set up.
    • A new directorate known as Directorate of Inspection (Vigilance) came into existence by bifurcating the functions of Directorate of Inspection (Investigation).
    • Chokshi Committee submitted its final report.
  • 1979
    • A new directorate designated as Directorate of Inspection (Publication & Public Relations) created out of the Directorate of Inspection (RS&P).
  • 1980
    • Hotel Receipt Tax Act, 1980 came into force w.e.f. 1.4.1981.
  • 1981
    • Economic Administrative Reforms Commission set up.
    • Three new Directorates viz. Directorate of Inspection (Intelligence), Directorate of Inspection (Survey) and Directorate of Inspection (Systems) created.
    • Within the Directorate of Inspection (Income Tax and Audit), a separate Director of Inspection (Audit) appointed.
    • Directorate of Inspection (RS&P) re-organised and Directorate of Inspection (P&PR) re-designated as Directorate of Inspection (Printing & Publications).
    • I.R.S.(DT) Staff College, Nagpur, re-designated as National Academy of Direct Taxes.
    • Special Bearer Bonds (Immunities & Exemptions) Act promulgated.
    • Director General (Special Investigation) and Director General (Investigation) appointed to control the functioning of various Directorates under the control of Central Board of Direct Taxes.
    • Five posts of Chief Commissioner (Administration) created.
    • A few posts of Commissioner of Income-tax were earmarked as Commissioner of Income-tax (Inv.) and Commissioner of Income- tax (Recovery).
  • 1982
    • Special Cell within the Directorate of Inspection (Investigation) converted into a separate Directorate and re-designated as Directorate of Inspection (Special Investigation).
    • DIT (Systems) appointed in the Directorate of Income-tax (Organisation and Management Services) to coordinate efforts in introducing electronic data processing in the IT Deptt. A microprocessor based EDP system along with data entry system was installed heralding the era of computerisation.
    • Levy of Hotel Receipts Tax discontinued.
    • Regional Training Institute at Nagpur started functioning under the control of the National Academy of Direct Taxes.
  • 1983
    • The vigilance set up reorganised and the strength of Dy. Director (Vigilance) and Asstt. Director(Vigilance) augmented.
    • Computerised systems for processing challans and PAN designed and developed.
  • 1984
    • Taxation Laws(Amendment) Act 1984 passed to streamline procedures in the interest of better work management; avoid inconvenience to tax payers; reduce litigation; remove anomalies and rationalise some provisions.
  • 1985
    • Post of Director General (Investigation) created for more effective checking of tax evasion.
    • E.D.(Amendment) Act 1985 discontinues levy of estate duty on deaths occurring on or after 16.03.1985.
    • Compulsory Deposit Scheme (Income Tax Payers) Act 1974 discontinued w.e.f. 1.4.1985.
    • Interest Tax Act, 1974 discontinued w.e.f. 31.3.1985
    • A new “Reward Scheme” for motivating officers introduced w.e.f. 1.4.1985.
  • 1986
    • The I.T. Act and W.T. Act amended by Taxation Laws (Amendment and Miscellaneous Provisions) Act :-
    • Established Settlement Commission.
    • Introduced Block assets concept for depreciation.
    • Four offices of Appropriate Authority for acquiring property in which unaccounted money is invested set up in metropolitan cities.
  • 1987
    • Government’s approval obtained to set up three new benches of Settlement Commission.
    • L.K. Jha Committee set up for simplification and rationalisation of tax laws.
    • Office of Directorate General (Tax Exemption) set up at Calcutta.
    • The Direct Tax Law(Amendment) Act 1987 introduced uniform previous year and redesignated the following authorities :-
      • Director of Inspection
      • Insp. Asstt. Commissioner of I.Tax
      • Appellate. Asstt. Commissioner
      • Income tax Officer Gr. A
      • Income tax Officer Gr. B
      • Director of Income Tax
      • Dy. Commissioner of Income Tax.
      • -Do- (Appeals)
      • Asstt. Commissioner of I.Tax
      • Income tax Officer
    • Expenditure Tax Act 1987 brought into force.
  • 1988
    • Benami Transactions Prohibition Act 1988 introduced.
    • The Government announced a “Time Window Scheme” which allowed tax payers 50% rebate of interest u/s 220(2) if they pay the tax and balance interest. The scheme was in operation between 1.7.88 to 30.9.88.
    • CIT (Central) placed under the control and supervision of Director General (Investigation).
    • Government decided that cadre control for Group ‘C’ and ‘D’ posts would be with Chief Commissioner and with CBDT for Group ‘A’ and ‘B’posts.
    • Extension of Direct Tax Law to the State of Sikkim by a notification of the President of India dated 7.11.1988.
  • 1989
    • Creation of an attached office of DGIT(Management Systems) to supervise Directorate of I.Tax(Research, Statistics, Publication & Public Relations) and Directorate of I.Tax (Organisation and Management Services) from Sept. 1989.
  • 1990
    • Gift tax Bill introduced on 31.5.1990.
    • Creation of 65 posts of Dy. Commissioner of I.Tax by upgradation of equal number of posts of Asstt. Commissioner of I.Tax.
  • 1991
    • Interest Tax Act, 1974 revived.
    • Directorate of I.Tax(Systems) started reporting directly to Board.
  • 1992
    • Rs. 1400 Presumptive Taxation scheme introduced as a measure to widen tax base.
    • The post of Director General of Income-tax (Management Systems) was abolished.
  • 1993
    • 40 additional posts of Commissioner of Income-tax (Appeals) created.
    • Authority for Advance Rulings set up.
    • A comprehensive phased cadre review for Group B, C and D initiated.
  • 1994
    • 2068 additional posts in Group B, C and D sanctioned.
    • New PAN introduced.
    • Regional Computer Centres (RCCs) were set up in Chennai, Delhi and Mumbai.
  • 1995
    • New procedure for search assessment introduced.
    • 50 years of training commemorated and “Seminar Twenty Five” introduced by National Academy of Direct Taxes.
  • 1996
    • 77 posts of Commissioners of Income-tax created.
    • Infrastructure for operational needs strengthened.
    • Study report on 4th cadre review of Group ‘A’ officers (IRS) of the Department prepared by Directorate of Income Tax (Organisation and Management Services).
  • 1997
    • Rates of Income-tax reduced significantly.
    • Legal measures to widen tax base on certain economic indicators introduced in selected cities.
    • Presumptive tax scheme discontinued.
    • Voluntary Disclosure Scheme 1997 introduced.
    • Minimum Alternate Tax introduced.
    • National Computer Centre (NCC) was set up in Delhi.
  • 1998
    • Sec. 260A introduced enabling direct appeals to High Court.
    • 1/6 Scheme & penalty for non-filing of return introduced to widen tax base.
    • Gift-tax abolished for gifts made after 1.10.1998.
    • Kar Vivad Samadhan Scheme 1998 introduced.
    • Silver Jubilee of Regional Training Institutes celebrated.
    • Designation of Asstt. Commissioner (Senior Time Scale) changed to Dy. Commissioner and that of Dy. Commissioner (Junior Administrative Grade) to Joint Commissioner.
  • 1999
    • Furnishing details of bank account and credit cards in the prescribed form made mandatory for refund purpose.
    • Prima-facie adjustments to return done away with; acknowledgments to serve as intimations.
    • Samman Scheme introduced in 1999 to honour deserving tax payers.
  • 2000
    • The process of implementation of restructuring of the Department commenced to increase efficiency and to deal with increased workload.
    • Total sanctioned work force reduced from 61,031 to 58,315.
    • Certain rationalisation measures at structural levels introduced.
    • Interest-tax Act terminated with effect from 1-4-2000.
  • 2001
    • The restructuring of the Department resulted in reducing the stagnation at all levels and large number of personnel were promoted in various grades.
    • Jurisdiction pattern was revamped.
    • New posts were created at the level of DGIT/DIT in the areas of Research, International Taxation and Infrastructure.
  • 2002
    • Computerised processing of returns all over the country introduced.
    • Kelkar Committee Report, inter alia, recommended :-
      i. Outsourcing of non-core functions of the department ;
      ii. Reduction in exemptions, deductions, reliefs, rebates etc.
    • The National Website of the Income Tax Department (www.incometaxindia.gov.in) was launched to provide a vital interface between the Department and taxpayers.
  • 2003
    • The National Website of the Department (www.incometaxindia.gov.in) won the Silver Medal in the category of the ‘Government Websites’under the National e-Governance Awards.
  • 2004
    • As a measure of widening of tax base, the concept of AIR (Annual Information Return) was introduced.
    • Fringe Benefit Tax (FBT) was introduced as a major step towards widening of tax base and bolstering of the Direct Tax Collection.
    • Securities Transaction Tax (STT) was introduced.
  • 2005
    • Tonnage Tax was introduced for the Shipping Companies.
    • Banking Cash Transaction Tax (BCTT) was introduced w.e.f. 01-06-2005.
  • 2006
    • A project for enabling electronic filing (e-filing) of Income Tax Returns was launched.
    • Tax Return Preparer Scheme (TRPS) was launched to assist individuals and HUF taxpayers to file their Return of Income.
    • The institution of Income Tax Ombudsman set up in 12 cities throughout the country to look into tax related grievances of the common public.
  • 2007
    • The Refund Banker Scheme was launched in Delhi and Patna charges.
    • Sevottam Scheme was launchedto standardize service delivery to the taxpayers.
    • The first citizen-friendly single window Aayakar Seva Kendra (ASK)was setup,for centralized receipt and registration of specified categories of documents, including income tax returns.
    • The Income Tax Department became the biggest revenue mobiliser for the Government in 2007-08, with its share increasing from 34.76%in 1997-98 to 52.75%in 2007-08.
    • All India Tax Network (TAXNET) was setup connecting more than 700 offices in more than 500 cities. Consolidation of 36 (RCC) independent regional databases into a single centralized database (PDC or Primary Data Centre) was carried out.
    • Integrated Taxpayer Data Management System (ITDMS) for drawing of 360° taxpayer profile was launched.
  • 2008
    • Cyber Forensic Labs were setup to identify relevant digital data during search and survey operations, recover hidden or password protected or deleted data and store retrieved data in a manner so that it could be used as evidence in judicial proceedings.
    • Electronic filing of Income Tax Returns Project was awarded Silver Award in the category “Outstanding Performance in Citizen Centric Service Delivery” under the National e-Governance Awardsfor the year 2007-08.
  • 2009
    • Centralized Processing Centre was setup in Bengaluru for bulk processing of e-filed and paper returns. The Centre operates without any interface with taxpayers in a jurisdiction – free manner.
  • 2010
    • Integrated Tax Payer Data Management System (ITDMS) was conferred the Prime Minister’s Award for ‘Excellence in Governance and Administration’.
    • CPC Bengaluru awarded the Gold Award for ‘Excellence in Government Process Re-engineering’ under the National e-Governance Awards for the year 2010-2011.
    • To simplify the 50 years old Income-tax Act, 1961,’The Direct Taxes Code Bill, 2010′ was introduced in the Parliament.
  • 2011
    • Foreign Tax Division of CBDT was strengthened to effectively handle the increase in tax information exchangeand transfer pricing issues.
    • Various IT initiatives were taken for efficient tax administration. These include e-filing and e-payment of taxes, adoption of ‘Sevottam’ concept by CBEC and CBDT, web based facility for tax payers to track the resolution of refunds and credit for pre-paid taxes and augmentation of processing capacity.
    • A new simplified form ‘Sugam’ was introduced to reduce the compliance burden of small tax payers falling within presumptive taxation.
  • 2012
    • Senior Citizens (not having any income from business/profession), were exempted from payment of advance tax.
    • TRACES (TDS Reconciliation, Accounting and Correction Enabling System) launched to serve an integrated one-stop platform for the stakeholders to facilitate the services related to TDS operations.
  • 2013
    • The Government approved the Cadre restructuring of the Department for the creation of 20,751 additional posts and for carrying out various measures to increase the effectiveness of the Department.
    • Briefly, the salient features of the approved restructuring are as under:
      • a. Number of assessment units (AUs) increased by 1080 from 3420 to 4500, for strengthening the tax-administration;
      • b. Each Range to have one more Assessing Officer;
      • c. Increase in the number` of Administrative CsIT deployed on assessment related functions to increase from 228 to 250;
      • d. 114 Special Ranges to be created, with adequate supporting manpower;
      • e. Creation of reserves numbering 620 created in the IRS cadre;
      • f. Bifurcation of the posts of the CITs in the HAG and SAG scales, on functional basis;
      • g. Upgradation of all existing 116 posts of CCsIT in HAG+ and Apex scales along with an increase of their number by 1 post;
      • h. Strengthening of the training set-up with creation of three more RTIs;
      • i. Strengthening the Appellate/Advocacy Structure by increasing the number of CIT Appeals and providing them supporting manpower. Advocacy structure in the ITAT to be strengthened.
  • 2014
    • New National Website of the Income Tax Department www.incometaxindia.gov.in launched with enhanced new features and content.
    • SIT to investigate Black Money in Swiss Bank Accounts formed
    • Tax Administrative Reforms Commission (TARC) headed by Dr. Parthasarathi Shome submitted its report of reviewing the applicability of tax policies and tax laws in the context of global best practices and recommending measures for reforms required in tax administration to enhance its effectiveness and efficiency.

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