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Direct Tax Laws and International Taxation · CBDT and Other Authorities

Income-tax Authorities and Their Appointment under Section 237

Updated 11 October 2026 · Fact-checked

Section 236 of the Income-tax Act, 2025 lists twelve classes of income-tax authorities, from the Central Board of Direct Taxes down to Inspectors. Under section 237, the Central Government appoints them. It can authorise senior officers to appoint those below Deputy or Assistant Commissioner, and authorised authorities can appoint staff.

Understand Income-tax Authorities and Their Appointment

The Act needs officers to assess income, collect tax and enforce the law. Section 236 names the classes of income-tax authorities. It starts with the Central Board of Direct Taxes (CBDT), constituted under the Central Boards of Revenue Act, 1963. It then lists officers in descending rank.

The list in section 236 runs in this order: (a) the Board; (b) Principal Directors General or Principal Chief Commissioners; (c) Directors General or Chief Commissioners; (d) Principal Directors or Principal Commissioners; (e) Directors, Commissioners or Commissioners (Appeals); (f) Additional Directors, Additional Commissioners or Additional Commissioners (Appeals); (g) Joint Directors, Joint Commissioners or Joint Commissioners (Appeals); (h) Deputy Directors or Deputy Commissioners; (i) Assistant Directors or Assistant Commissioners; (j) Income-tax Officers; (k) Tax Recovery Officers; (l) Inspectors of Income-tax.

Section 237 deals with appointment. Sub-section (1) says the Central Government may appoint such persons as it thinks fit to be income-tax authorities. This is the general power.

Sub-section (2) allows delegation. Subject to the rules and orders on conditions of service in public services and posts, the Central Government may authorise the Board, a Principal Director General or Director General, a Principal Chief Commissioner or Chief Commissioner, a Principal Director or Director, or a Principal Commissioner or Commissioner to appoint income-tax authorities below the rank of Deputy Commissioner or Assistant Commissioner.

Sub-section (3) covers staff. An income-tax authority authorised by the Board may appoint the executive or ministerial staff needed to assist it in its functions, again subject to the rules and orders on conditions of service. Note that staff are not themselves listed as authorities in section 236.

Key rules to remember

Classes of authorities (section 236)
12 classes: Board → Pr. DG/Pr. CCIT → DG/CCIT → Pr. DIT/Pr. CIT → DIT/CIT/CIT(A) → Addl. → Joint → Deputy → Assistant → ITO → TRO → Inspector
The Board is class (a). Tax Recovery Officers are class (k) and Inspectors are class (l).
General appointment power (section 237(1))
Central Government appoints such persons as it thinks fit
This is the source power. Delegation under (2) is an exception.
Delegated appointment (section 237(2))
Authorised officer or Board may appoint authorities below the rank of Deputy/Assistant Commissioner
Needs authorisation by the Central Government and is subject to service rules and orders.
Staff appointment (section 237(3))
Authority authorised by the Board appoints executive or ministerial staff
Staff appointment is for assisting the authority in its functions.

How to solve Income-tax Authorities and Their Appointment questions

Use this method for any question on who the authorities are and who appoints them.

  1. 1Identify what is asked: the list of authorities (section 236), the appointing power (section 237), or both.
  2. 2For classification, write the hierarchy from the Board downward and place the officer named in the question in its class.
  3. 3For appointment, start with the Central Government's general power under section 237(1).
  4. 4Check the rank of the person to be appointed. If the rank is below Deputy or Assistant Commissioner, delegated appointment under section 237(2) is possible.
  5. 5Check who is delegated: the Board, or a Principal DG, DG, Pr. CCIT, CCIT, Pr. DIT, DIT, Pr. CIT or CIT, and that an authorisation exists.
  6. 6If the question is about clerical or executive staff, apply section 237(3): an authority authorised by the Board appoints them.
  7. 7Mention that all appointments are subject to the rules and orders on conditions of service, then state the conclusion.

Quickest way: Rank test for appointment

When to use it: For MCQs asking who can appoint a given officer.

  1. Ask: is the officer of Deputy/Assistant Commissioner rank or above? If yes, the Central Government appoints.
  2. If the officer is below that rank, delegation under section 237(2) is possible, but only if the Central Government has authorised it.
  3. If the post is executive or ministerial staff, the answer is an authority authorised by the Board.
  4. Eliminate options that give appointment power to the Assessing Officer or an Inspector, as no such power appears in section 237.

Common mistakes in Income-tax Authorities and Their Appointment

  • Saying the Board always appoints every authority.

    Students link the Board with administration.

    Fix: The general power is with the Central Government. The Board appoints only if the Central Government authorises it under section 237(2).

  • Stating the delegation limit as 'below Commissioner'.

    Confusion between the ranks in the list.

    Fix: Remember the wording: below the rank of Deputy Commissioner or Assistant Commissioner.

  • Treating delegation as automatic.

    Students ignore the word 'authorise'.

    Fix: Delegated officers can appoint only when the Central Government has authorised them, subject to the service rules and orders.

  • Omitting Tax Recovery Officers or Inspectors from the list.

    The last classes are easy to forget.

    Fix: Learn the list as twelve classes ending with ITOs, Tax Recovery Officers and Inspectors.

  • Mixing authority classes with staff.

    Both are appointed under section 237.

    Fix: Staff under section 237(3) are executive or ministerial. Authorities are those listed in section 236.

  • Quoting Income-tax Act, 1961 section numbers.

    Older books use them.

    Fix: For June 2027, use Income-tax Act, 2025: section 236 for classes and section 237 for appointment.

Worked examples

Example 1

List the classes of income-tax authorities under the Income-tax Act, 2025 and state the section governing them.

Show the solution
  1. The classes are in section 236.
  2. Start with (a) the Central Board of Direct Taxes.
  3. Then list (b) Principal Directors General or Principal Chief Commissioners, (c) Directors General or Chief Commissioners, and (d) Principal Directors or Principal Commissioners.
  4. Next list (e) Directors, Commissioners or Commissioners (Appeals), (f) Additional Directors or Commissioners, and (g) Joint Directors or Commissioners.
  5. Then (h) Deputy Directors or Commissioners, (i) Assistant Directors or Commissioners, (j) Income-tax Officers.
  6. Finish with (k) Tax Recovery Officers and (l) Inspectors of Income-tax.

Answer: Section 236 lists twelve classes, from the Board down to Inspectors of Income-tax.

Example 2

The Central Government has authorised a Principal Commissioner to appoint officers. Can the Principal Commissioner appoint an Assistant Commissioner? Can the Principal Commissioner appoint an Income-tax Officer?

Show the solution
  1. Section 237(2) allows the Central Government to authorise a Principal Commissioner to appoint authorities below the rank of Deputy Commissioner or Assistant Commissioner.
  2. An Assistant Commissioner is of the rank of Assistant Commissioner, not below it, so the delegated power does not cover this appointment.
  3. An Income-tax Officer ranks below Assistant Commissioner in the section 236 list.
  4. So the delegated power covers an Income-tax Officer, subject to service rules and orders.

Answer: The Principal Commissioner cannot appoint an Assistant Commissioner under the delegation (the Central Government does that). The Principal Commissioner can appoint an Income-tax Officer, subject to the rules and orders on conditions of service.

Exam tips

  • Learn section 236 as an ordered list; MCQs often ask which class comes after or before another.
  • Remember the three layers of section 237: Central Government, delegated authorities, and staff.
  • In case-based questions, check rank first, then whether an authorisation exists.
  • Use Income-tax Act, 2025 section numbers (236, 237) and not the 1961 Act's.

Practice questions from CBDT and Other Authorities

Income-tax Authorities and Their Appointment in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Income-tax Authorities and Their Appointment: frequently asked questions

Who appoints income-tax authorities in India?

Under section 237(1) of the Income-tax Act, 2025, the Central Government may appoint such persons as it thinks fit. It may authorise certain senior officers or the Board to appoint authorities of lower rank.

Which authorities can be appointed by delegation?

Those below the rank of Deputy Commissioner or Assistant Commissioner. The Central Government may authorise the Board, or officers from Principal DG/DG, Pr. CCIT/CCIT, Pr. DIT/DIT or Pr. CIT/CIT rank, to make them.

Who appoints the office staff of income-tax authorities?

Under section 237(3), an income-tax authority authorised by the Board may appoint the executive or ministerial staff needed to assist it. This is subject to the rules and orders on conditions of service.

Where are the classes of income-tax authorities listed?

In section 236 of the Income-tax Act, 2025. It names twelve classes, starting with the Central Board of Direct Taxes and ending with Inspectors of Income-tax.