CBDT plans 11 more directorates for tax exemption cases

To speed up clearances of tax exemption cases, the Central Board of Direct Taxes (CBDT) will set up 11 more specialised offices in the country.

"CBDT plans to have directorate [exemptions] in all the states and to begin with we will be setting up 10-11 new directorates," a revenue official said.

However, the official did not specify any timeframe for creation of the specialised offices (directorates).

Exemptions are given under the Income Tax Act, 1961, to encourage and fulfill certain social objectives relating to areas such as sports, charity, religion and education.

The exemption wing of the Income Tax Department, headed by Director General of Income Tax (Exemptions), currently has seven directorates -- Kolkata, Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad and Mumbai.

When the new directorates are operationalised, the number will increase to 18.

The government also allows tax exemptions to various organisations engaged in activities like charity, religious activities and scientific research-related.

Early this year, the board had set up a committee to suggest ways to further strengthen the administrative process in relation with exempt entities.

The committee is likely to submit its report early next month, the official said.