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Tax Laws and Practice · Direct Tax at a Glance

Income-tax Authorities and Their Control under the Income-tax Act, 2025

Updated 11 October 2026 · Fact-checked

Income-tax authorities are the officers the Central Government appoints to administer the Act (section 237). Section 238 lets the Board, by notification, make one authority subordinate to another. To answer a question, state the provision, apply it to the facts, and conclude on who appoints, who controls and who is subordinate.

Understand Income-tax Authorities and Their Control

The Income-tax Act needs people to run it: to assess returns, collect tax and enforce the law. These people are called income-tax authorities. The Act does not leave their creation to chance. It sets out who appoints them and who controls them.

Under section 237(1), the Central Government may appoint such persons as it thinks fit to be income-tax authorities. So the power of appointment starts with the Central Government.

Section 237(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, or a Principal Director General or Director General, or a Principal Chief Commissioner or Chief Commissioner, or a Principal Director or Director, or a Principal Commissioner or Commissioner, to appoint income-tax authorities below the rank of a Deputy Commissioner or Assistant Commissioner. So senior posts are filled by the Central Government. Lower ranks can be filled by these authorised officers.

Section 237(3) deals with 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 of the Central Government on conditions of service.

Section 238 deals with control. The Board may, by notification, direct that any income-tax authority or authorities specified in the notification shall be subordinate to such other income-tax authority or authorities as specified in it. This is how the hierarchy is fixed: not by guesswork, but by a Board notification. When a question asks who controls whom, your answer rests on section 238.

Key rules to remember

Appointment of authorities (section 237(1))
Central Government may appoint such persons as it thinks fit to be income-tax authorities
The starting power of appointment lies with the Central Government.
Delegated appointment (section 237(2))
Board / Principal Director General or Director General / Principal Chief Commissioner or Chief Commissioner / Principal Director or Director / Principal Commissioner or Commissioner may appoint authorities below the rank of Deputy Commissioner or Assistant Commissioner
Needs authorisation by the Central Government and is subject to service rules and orders.
Appointment of staff (section 237(3))
Authority authorised by the Board may appoint executive or ministerial staff to assist it
Subject to Central Government rules and orders on conditions of service.
Control (section 238)
Board, by notification, may direct that specified authority shall be subordinate to other specified authority
Subordination is created by notification of the Board.

How to solve Income-tax Authorities and Their Control questions

Use this method for any question on appointment, hierarchy or control of income-tax authorities.

  1. 1Identify what is asked: appointment, delegation, staff, or control and subordination.
  2. 2Quote the provision: section 237 for appointment, section 238 for control.
  3. 3For appointment, name who appoints: the Central Government, or an authorised officer for ranks below Deputy Commissioner or Assistant Commissioner.
  4. 4Check the conditions: authorisation by the Central Government and the rules on conditions of service.
  5. 5For control, check whether the Board has issued a notification making one authority subordinate to another.
  6. 6Apply the rule to the facts given, naming the rank involved.
  7. 7Write a clear conclusion in one or two lines.

Quickest way: Two-section shortcut: 237 appoints, 238 controls

When to use it: Use for short-answer or theory questions when time is tight.

  1. Write: appointment is under section 237, control is under section 238.
  2. Add the Central Government as the appointing power, with delegation below Deputy Commissioner or Assistant Commissioner.
  3. Add that the Board controls hierarchy by notification.
  4. Close with one line applying it to the facts.

Common mistakes in Income-tax Authorities and Their Control

  • Saying the Board appoints all income-tax authorities

    Students link the Board with everything in the department.

    Fix: Section 237(1) gives the power to the Central Government. The Board only appoints where authorised, and only for ranks below Deputy Commissioner or Assistant Commissioner.

  • Claiming delegated authorities can appoint a Deputy Commissioner

    The list of officers in section 237(2) is read without the limit on rank.

    Fix: Delegated appointment covers only ranks below Deputy Commissioner or Assistant Commissioner.

  • Saying subordination arises automatically from rank

    Students assume the hierarchy is fixed by designation.

    Fix: Under section 238, subordination is directed by Board notification. Mention the notification.

  • Ignoring the service rules condition

    Students focus on who appoints and skip the conditions.

    Fix: Add that appointments are subject to the rules and orders regulating conditions of service in public services and posts.

  • Quoting old section numbers from the 1961 Act

    Older notes are still in circulation.

    Fix: For June 2027, cite the Income-tax Act, 2025: sections 237 and 238.

Worked examples

Example 1

Explain how income-tax authorities are appointed under the Income-tax Act, 2025. Can a Commissioner appoint an officer of the rank of Deputy Commissioner?

Show the solution
  1. Provision: section 237(1) says the Central Government may appoint such persons as it thinks fit to be income-tax authorities.
  2. Section 237(2) lets the Central Government, subject to service rules and orders, authorise the Board, Principal Director General or Director General, Principal Chief Commissioner or Chief Commissioner, Principal Director or Director, or Principal Commissioner or Commissioner to appoint authorities.
  3. Limit: this delegated power covers only authorities below the rank of Deputy Commissioner or Assistant Commissioner.
  4. Application: a Deputy Commissioner is not below that rank, so the delegated power does not extend to such an appointment.

Answer: Authorities are appointed by the Central Government under section 237(1). Authorised senior officers may appoint only ranks below Deputy Commissioner or Assistant Commissioner, so a Commissioner cannot appoint a Deputy Commissioner under section 237(2).

Example 2

The Board wants an Assistant Commissioner to work under a particular Commissioner. Which provision allows this and how is it done?

Show the solution
  1. Provision: section 238 deals with control of income-tax authorities.
  2. Rule: the Board may, by notification, direct that any authority specified shall be subordinate to another authority specified in the notification.
  3. Application: the Board issues a notification naming the Assistant Commissioner (or the class of such officers) as subordinate to the specified Commissioner.
  4. Result: the subordination takes effect through the notification.

Answer: Section 238 allows it. The Board must issue a notification directing that the Assistant Commissioner be subordinate to the specified Commissioner.

Exam tips

  • Cite section 237 for appointment and section 238 for control. Examiners reward the section number.
  • Always state the rank limit: below Deputy Commissioner or Assistant Commissioner.
  • Use the word notification when answering on section 238.
  • Write the Income-tax Act, 2025, not the 1961 Act, for June 2027.
  • Finish with a one-line conclusion tied to the facts given.

Practice questions from Direct Tax at a Glance

Income-tax Authorities and Their Control 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 Control: frequently asked questions

Who appoints income-tax authorities?

Under section 237(1), the Central Government may appoint such persons as it thinks fit. For ranks below Deputy Commissioner or Assistant Commissioner, the Central Government may authorise specified senior officers or the Board to appoint.

What does section 238 of the Income-tax Act, 2025 say?

It says the Board may, by notification, direct that any income-tax authority specified shall be subordinate to another specified authority. It is the basis of control and hierarchy.

Can income-tax authorities appoint their own staff?

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

How should I write an answer on this topic?

State the provision, apply it to the facts and give a conclusion. Cite section 237 or 238 and mention the rank limit or the notification where relevant.