Fiscal Autonomy for CBDT – The DTC
IT used to be joked that the mighty Chairman of the Central Board of Direct Taxes (or for that matter the CBEC) does not have the power to buy a sheet of white paper – for that he has to depend on the Revenue Administration.
The service had demanded, before the Pay Commission, functional and financial autonomy on par with that available in Railway Board for the Revenue Boards – CBEC and CBDT. Status of Principal Secretary along with pay of Cabinet Secretary has been demanded for the post of Chairperson with the status of Secretary to Government of India demanded for Members of CBEC and CBDT.
The VI Pay Commission was not of course impressed and observed,
Work entrusted to CBEC/CBDT is revenue collection which is one of the sovereign functions. The Boards cannot, therefore, be equated to the Railway Board which primarily discharges functions of a commercial nature. As such, complete functional and financial autonomy to CBEC/CBDT is not justified.
What the Pay Commission refused, the proposed Direct Taxes Code, seems to have granted. Under the new Code, there will be a grant for the CBDT, passed by Parliament.
Section 125 of the Code reads as,
125.(1) The Board shall prepare an estimate of the sums of money which may be required in any financial year for meeting the following expenditure:-
(a) the salaries, allowances and other remuneration of the Members, officers, and other employees of the Board, its attached offices and the Income-tax Department; and
(b) the expenses of the Board, its attached offices and the Income-tax Department in the discharge of its functions under this Code.
(2) The estimate prepared under sub-section (1) shall, on approval by the Central Government with such modifications as may be considered necessary on the basis of discussion with the Board, be presented to the Parliament for due appropriation by law.
3) The Central Government shall, after due appropriation under sub-section (2), make to the Board grants of the amount so appropriated for being utilised for the purposes referred to in sub-section (1).
(4) The administration of the grant referred to in sub-section (3) shall, regardless of anything contained in any other law or rules, vest in the Board.
So, now the Board has a grant and the administration of the grant vests with the Board. The Chairman can after all buy that sheet of white paper.