As part of larger cost-cutting measures in the government, the Central Board o
As part of larger cost-cutting measures in the government, the Central Board of Direct Taxes (CBDT) has instructed its heads of departments (HODs) to limit key expenses failing which a number of their expenditures will not be sanctioned.
The expenditures they have been told to cut down on could include legal charges, write-off losses, repair and maintenance work, rewards to informants, bonuses for staff, vehicle, stationery and advertising among others. Tax officials see the instructions as austerity measures undertaken by the direct tax body.
The financial power upto Rs 60-90 lakh (varies region-wise) per annum sanctioned to HoDs ( commissioner rank and above) for outsourcing of services.
In a letter issued on Tuesday, said “several instances have come to the notice of CBDT wherein it has been noted that official memorandum has not been followed and HODs are sanctioning expenditures on outsourcing of services beyond their delegated financial power. This is either by way of entering into a fresh…