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ITD and ITSC are different in respect of their functions. ITSC comes under the ITD, but it works independently from ITD.
In the article, we will discuss the difference between ITD and ITSC. The ITD and ITSC are different from each other in respect of their functions, features, and procedures.
Table of Contents
In the next segment we will learn about the ITD and ITSC in detail; its definition, objective, features.
ITD is Income Tax Department is a government agency mostly responsible to monitor the income tax collection in India. The inflow of various taxes is taken care by ITD & their subsequent collection on behalf of Government of India. The ITD comes under the Department of Revenue of the Ministry of Finance.
ITD is being controlled by CBDT (Central Board of Direct Taxes) and is responsible for managing Direct taxes under the ITD. It is a government body headed by the Chairman & comprises of 6 members (ex-officio members Special Secretary of Government).
The aim of ITD (Income Tax Department) is to partner the nation building through progressive tax policy, effective tax administration and improved compliance.
ITSC stands for Income Tax Settlement Commission. It is a quasi judicial body set up under the Income Tax Act, 1961. The primary purpose of ITSC is to resolve the tax liabilities in complicated cases and to avoid endless & prolonged litigation.
A taxpayer can come to ITSC during the pendency of the assessment proceedings, subject to certain conditions. In order to make an application to ITSC, the tax & interest on additional income disclosed before the ITSC has to be paid. The order passed by the ITSC is binding and no appeal can be made to any authority against that order.
ITSC was established in the year 1976 to settle the disputes related to income tax, on the advice of Direct Tax Enquiry Committee lead by Shri K.N. Wanchoo, former Chief Justice of India. The motive behind the committee is to provide a machinery to resolve the tax related disputes and a speedy settlement of disputes.
The ITD and ITSC are different from each other in respect of their functions, features, and procedures. The following are the features of ITSC:
The primary objective of ITSC is to provide an opportunity to the errant taxpayers to approach the commission in case of a dispute.
The other objectives are:
The procedure is:
ITD is Income Tax Department is a government agency mostly responsible to monitor the income tax collection in India. It takes care of the inflow of various taxes & their subsequent collection on behalf of Government of India.
ITSC is Income Tax Settlement Commission setup under the Income Tax Act, to resolve the tax liabilities in complicated cases and to avoid endless & prolonged litigation.
Therefore, ITD and ITSC are different in respect of their functions. ITSC comes under the ITD but it works independently from ITD. ITSC is a settlement commission setup specifically to resolve the tax liabilities in complicated cases and to avoid endless & prolonged litigation.
Read our article: How to manage Income Tax notices?
Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.
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