The Income Tax Department, also referred to as IT Department, is a government agency undertaking direct tax collection of the Government of India. It functions under the Department of Revenue of the Ministry of Finance. Income Tax Department works under the apex body Central Board of Direct Taxes (CBDT) and its main responsibility is enforcement of various direct tax laws, most important among these being the Income-tax Act, 1961, though other economic laws like the Benami Transactions (Prohibition) Act and the Black Money Act are also implemented by the department.

The IT Department is also responsible for enforcing the Double Taxation Avoidance Agreements and deals with various aspects of international taxation such as Transfer pricing. Finance Act, 2012 seeks to grant Income Tax Department powers to combat aggressive Tax avoidance by enforcing General Anti Avoidance Rules.


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