Multiple choice

Which one of the following statements about the Central Board of Direct Taxes is not correct?

  1. The Central Board of Taxes provides essential inputs for public and planning of direct taxes in India.

  2. The Central Board of Direct Taxes is not responsible for administration of direct tax laws.

  3. The chairman and members of the Central Board of Direct Taxes are selected from the Indian Revenue Service only.

  4. Various functions and responsibilities of the Central Board of Direct Taxes are distributed amongst the chairman and the members, with only fundamental issues reserved for collective decision by the board.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Central Board of Direct Taxes (CBDT) IS responsible for administration of direct tax laws in India - it frames policies and administers income tax, corporate tax, and other direct taxes. Statement B says it is NOT responsible, which is incorrect and thus the right answer to this 'which is not correct' question. The other statements are generally accurate about CBDT's role in policy planning, IRS composition, and functional distribution.

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