Functions of Income Tax Authorities:

• Assessment: The income tax authorities are responsible for assessing the income of individuals and businesses to determine the amount of tax that is owed.

• Collection: Income tax authorities collect taxes from individuals and businesses based on their assessed income.

• Enforcement: Income tax authorities have the power to enforce tax laws and regulations, including conducting audits and investigations to ensure compliance.

• Issuing Notices: The income tax authorities issue notices to individuals and businesses for various purposes, such as filing returns, providing information, or attending hearings.

• Appeals: Income tax authorities also handle appeals filed by taxpayers who disagree with the assessment of their income or tax liabilities.

• Providing Guidance: Income tax authorities provide guidance and assistance to taxpayers on tax-related matters, such as filing returns, claiming deductions, and understanding tax laws.

Powers and Duties of Income Tax Authorities:

• Search and Seizure: Income tax authorities have the power to conduct search and seizure operations to uncover undisclosed income or assets.

• Penalties and Prosecution: Income tax authorities can impose penalties on taxpayers for non-compliance with tax laws and can also initiate prosecution proceedings in case of tax evasion.

• Assessment and Reassessment: Income tax authorities assess and reassess the income of taxpayers to ensure accurate tax calculations.

• Refunds and Adjustments: Income tax authorities process refunds for taxpayers who have overpaid taxes and make adjustments for any discrepancies in tax payments.

• Conducting Surveys: Income tax authorities can conduct surveys to gather information and verify the income and assets of taxpayers.

In conclusion, income tax authorities play a crucial role in administering and enforcing tax laws to ensure compliance and fair taxation for individuals and businesses.