The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Central and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law". Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature

SBA, established in the year 1993 to provide tax solutions with Planning, to provide tax Solutions for government taxes of business in proper and systmetic manner and report accordingly for the variations or failure of the taxation of the business under the responsive government tax authority.


Direct Taxation

There are rapid changes in administration of direct taxes, during the last decades, reflect the history of economic thinking in India. From 1922 to the present day changes in direct tax laws have been so rapid that except in the bare outlines, the traces of the I.T. Act, 1922 can hardly be seen in the 1961 Act as it stands amended to date. It was but natural, in these circumstances, that the set up of the department should not only expand but undergo structural changes as well.

Computerisation in the Income-tax Department started with the setting up of the Directorate of Income tax (Systems) in 1981. Initially computerisation of processing of challans was taken up. For this first time three computer centres were set up in 1984-85 in metropolitan cities using SN-73 systems. This was later extended to 33 major cities by 1989. The computerized activities were subsequently extended to allotment of PAN under the old series, allotment of TAN, and pay roll accounting. These computer centres used batch process with dumb terminals for data entry.

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:

  • • Number of assessment units (AUs) increased by 1080 from 3420 to 4500, for strengthening the tax-administration;
  • • Each Range to have one more Assessing Officer;
  • • Increase in the number` of Administrative Cs IT deployed on assessment related functions to increase from 228 to 250;
  • • 114 Special Ranges to be created, with adequate supporting manpower;
  • • Creation of reserves numbering 620 created in the IRS cadre;
  • • Bifurcation of the posts of the CITs in the HAG and SAG scales, on functional basis;
  • • Upgradation of all existing 116 posts of CCsIT in HAG+ and Apex scales along with an increase of their number by 1 post;
  • • Strengthening of the training set-up with creation of three more RTIs;
  • • 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.

The Income Tax Act 1961 lays down the frame work or the basis of charge and the computation of total income of a person. It also stipulates the manner in which it is to be brought to tax, defining in detail the exemptions, deductions, rebates and reliefs. The Act defines Income Tax Authorities, their jurisdiction and powers It also lays down the manner of enforcement of the Act by such authorities through an integrated process of assessments, collection and recovery, appeals and revisions, penalties and prosecutions. The Act is fast changing and dynamic in nature and undergoes amendments annually through the Finance Act.

Indirect Taxation

Whether it was uniformity of taxation and consequent free interior trade or possession of ‗the jewel in the crown‘ at the root of prosperity of Britain is debatable, nonetheless the words of father of modern economics on the benefits of uniformity of system of taxation cannot be taken too lightly. Before implementation of Goods and Service Tax (GST), Indian taxation system was a farrago of central, state and local area levies. By subsuming more than a score of taxes under GST, road to a harmonized system of indirect tax has been paved making India an economic union.

Other Government Taxation

Need Content

Tax Assessment and Solutions