Consider the following statements with respect to the Central Board of Direct Taxes CBDT a...........

Economic Affairs Tax System

Consider the following statements with respect to the Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes & Customs (CBIC):

1. While Central Board of Direct Taxes (CBDT) is an executive body, the Central Board of Indirect Taxes & Customs (CBIC) is a statutory body.

2. Both of them are administered by the Department of Revenue under the Ministry of Finance.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Central Board of Direct Taxes (CBDT) is responsible for the administration of the direct tax laws in India. Central Board of Indirect Taxes & Customs (CBIC), on the other hand, deals with the tasks of formulation of policy concerning the levy and collection of Customs, Central Excise duties, Central Goods & Services Tax, and IGST. Both the boards are executive bodies and are not statutory bodies.

Both CBDT and CBIC operate under the Department of Revenue in the Ministry of Finance. The Department of Revenue is responsible for the administration of direct taxes (like Income Tax) through the CBDT and indirect taxes (like GST, Customs duties) through the CBIC.

Given this, only the second statement is correct