Tax Laws and Practice · Basic Concept of Income Tax

Income-tax Authorities under Section 236 of the Income-tax Act, 2025

Updated 11 October 2026 · Fact-checked

Income-tax authorities are the officers who administer the Income-tax Act, 2025. Section 236 lists twelve classes, from the CBDT down to Inspectors. The Central Government appoints them (section 237), and the Board directs their jurisdiction (section 241). To answer questions, state the class, the appointing rule, then the jurisdiction criteria.

Understand Income-tax Authorities

A tax law needs people to run it. Someone must assess returns, collect tax and handle disputes. The Income-tax Act, 2025 names these people as income-tax authorities. Section 236 gives the full list of classes. An officer who is not in that list is not an income-tax authority for the Act.

The list moves from top to bottom. At the top is the Central Board of Direct Taxes (CBDT), which is constituted under the Central Boards of Revenue Act, 1963. Below it come Principal Directors General or Principal Chief Commissioners, then Directors General or Chief Commissioners, then Principal Directors or Principal Commissioners. Next are Directors or Commissioners, including Commissioners (Appeals). Then come Additional, Joint and Deputy ranks, Assistant Directors or Assistant Commissioners, Income-tax Officers, Tax Recovery Officers and Inspectors.

Note the paired titles. Director and Commissioner are alternative names within the same class. The same applies to Joint Director and Joint Commissioner. The Commissioner (Appeals) and Additional or Joint Commissioner (Appeals) sit in the same classes as their counterparts, but they deal with appeals.

Appointment (section 237). The Central Government may appoint such persons as it thinks fit. It may authorise the Board, or a Principal Director General, Director General, Principal Chief Commissioner, Chief Commissioner, Principal Director, Director, Principal Commissioner or Commissioner, to appoint authorities below the rank of Deputy Commissioner or Assistant Commissioner. This is subject to the rules and orders on conditions of service. An authority authorised by the Board may also appoint executive or ministerial staff to assist it.

Jurisdiction (section 241). Authorities exercise their powers as per the directions of the Board. A higher-ranking authority may, if the Board directs, exercise the powers of a lower authority. The Board's directions can allow another authority to issue written orders to its subordinates. Directions may have regard to territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. Two or more Assessing Officers may even be given concurrent jurisdiction. Under section 245 the Central Government may notify a faceless scheme to reduce the interface between officer and assessee.

Key rules to remember

Classes of authorities (section 236): CBDT → Principal DG/Principal CC → DG/CC → Principal Director/Principal Commissioner → Director/Commissioner/Commissioner (Appeals) → Additional → Joint → Deputy → Assistant → Income-tax Officer → Tax Recovery Officer → Inspector; Twelve classes, (a) to (l). Remember the order from the top down.
Appointment (section 237): Central Government appoints; may authorise the Board and senior officers to appoint authorities below Deputy/Assistant Commissioner; The delegation is subject to service rules and orders. Staff appointment is by an authority authorised by the Board.
Criteria for jurisdiction (section 241(4)): Territorial area; persons or classes of persons; incomes or classes of income; cases or classes of cases; Four criteria. Learn them as a list of four.
Concurrent jurisdiction (section 241(7)): Lower-ranking Assessing Officer acts as the higher one directs; references to the Assessing Officer mean the higher authority; Applies where Assessing Officers of different classes exercise powers concurrently.
Faceless scheme (section 245): Central Government notifies scheme; laid before each House of Parliament; Aims: remove interface, use resources by functional specialisation, team-based work with dynamic jurisdiction.

How to solve Income-tax Authorities questions

Use this method for any question on income-tax authorities, whether it asks for a list, a power or a short case.

1Identify what is asked: classes, appointment, jurisdiction or the faceless scheme.
2Name the section: 236 for classes, 237 for appointment, 241 for jurisdiction, 245 for faceless jurisdiction.
3State the rule in plain words, using the exact conditions from the section.
4For hierarchy, list the classes from the CBDT down, grouping paired titles together.
5For jurisdiction, give the Board's power to direct and the four criteria in section 241(4).
6If facts are given, apply the rule to them: who appointed, who directed, who acts.
7Close with a one-line conclusion that answers the question asked.

Quickest way: Section-first recall

When to use it: Use when you have about five minutes for a short-note or direct question on authorities.

Write the section number and the heading of the provision.
List the classes in order if hierarchy is asked, otherwise write the appointing or directing body.
Add the four jurisdiction criteria if the word jurisdiction appears.
Write one sentence of conclusion.

Common mistakes in Income-tax Authorities

Listing fewer or more than twelve classes, or leaving out the CBDT, Tax Recovery Officers or Inspectors.
Students memorise only the officer ranks they hear about most often.
Fix: Learn the list as (a) to (l) and count to twelve. The CBDT is class (a) and Inspectors are class (l).
Treating Director and Commissioner as two separate classes.
The titles look different, so students assume different ranks.
Fix: Within a class the titles are alternatives, such as Directors of Income-tax or Commissioners of Income-tax.
Saying the CBDT appoints all authorities.
The Board is prominent in the Act, so students assume it appoints everyone.
Fix: Under section 237(1) the Central Government appoints. The Board and senior officers appoint below Deputy or Assistant Commissioner only if authorised.
Forgetting the criteria for jurisdiction orders.
Students write only that the Board issues directions.
Fix: Add the four criteria: territorial area, persons or classes of persons, incomes or classes of income, cases or classes of cases.
Quoting the repealed Income-tax Act, 1961 section numbers.
Older notes and books use the 1961 numbering.
Fix: For June 2027, use the Income-tax Act, 2025 numbering: sections 236, 237, 241 and 245.

Worked examples

Example 1

Explain who appoints income-tax authorities under the Income-tax Act, 2025 and whether the Board can delegate this appointment power.

Show the solution

Provision: Section 237 deals with the appointment of income-tax authorities.
Under section 237(1), the Central Government may appoint such persons as it thinks fit to be income-tax authorities.
Under section 237(2), the Central Government may authorise the Board or specified senior authorities to appoint income-tax authorities below the rank of Deputy Commissioner or Assistant Commissioner. This is subject to the rules and orders on conditions of service.
Under section 237(3), an authority authorised by the Board may appoint executive or ministerial staff to assist it.
Analysis: the delegation is limited. It covers only ranks below Deputy or Assistant Commissioner, and it needs authorisation by the Central Government.

Answer: The Central Government appoints income-tax authorities. It may authorise the Board and senior officers to appoint authorities below Deputy or Assistant Commissioner, subject to service rules. So the power can be delegated only to that extent.

Example 2

The Board directs that all cases of companies in Pune be handled by a particular Joint Commissioner, and that two Assessing Officers of different classes work on a group of cases together. Examine the legal basis.

Show the solution

Provision: Section 241 governs the jurisdiction of income-tax authorities.
Under section 241(1), authorities exercise their powers as per the Board's directions.
Under section 241(4), the Board may have regard to territorial area, persons or classes of persons, incomes or classes of income, and cases or classes of cases. Pune is territorial area, and companies are a class of persons. Both criteria are met.
Under section 241(5)(b), the Board may empower a specified authority to order that an Assessing Officer's powers for a specified area, persons or cases be exercised by an Additional or Joint Commissioner or Director.
Under section 241(7), directions may require two or more Assessing Officers, whether or not of the same class, to act concurrently. Where they are of different classes, the lower-ranking one acts as the higher one directs.
Conclusion: both directions are valid.

Answer: Both directions are within section 241. The Board may assign jurisdiction by area and class of persons, and may require concurrent jurisdiction. The lower-ranking Assessing Officer then acts as the higher authority directs.

Exam tips

Write the section number in every answer. Use 236, 237, 241 and 245, not the 1961 Act numbers.
For a hierarchy question, present the classes as a numbered list from the CBDT downward. It is easy to mark and easy to remember.
For a jurisdiction question, always include the four criteria in section 241(4).
If the question mentions faceless working, cite section 245 and give its three aims.

Practice questions from Basic Concept of Income Tax

Income-tax Authorities 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: frequently asked questions

How many classes of income-tax authorities does section 236 list?

Section 236 lists twelve classes, from (a) the CBDT to (l) Inspectors of Income-tax. Titles such as Director and Commissioner are alternatives within one class.

Who appoints income-tax authorities?

The Central Government appoints them under section 237(1). It may authorise the Board and senior officers to appoint authorities below the rank of Deputy or Assistant Commissioner, subject to service rules.

What is the role of the CBDT in jurisdiction?

Under section 241, authorities exercise their powers as per the Board's directions. The Board may have regard to territorial area, persons, incomes and cases when it issues them.

What is faceless jurisdiction under section 245?

It is a scheme the Central Government may notify to reduce the interface between the officer and the assessee, to the extent technologically feasible. It also allows team-based work with dynamic jurisdiction. The notification must be laid before each House of Parliament.