Limit expenses or won't sanction them: CBDT to HoDs in cost-cutting drive

Issues letter to heads of department asks to adhere to financial power

The Central Board of Direct Taxes (CBDT) has instructed heads of departments (HODs) to limit key expenses, failing which certain future expenses may not be sanctioned. The move comes as part of a larger cost-cutting exercise by the Centre. Expenditure on legal matters, write-off losses, repair and maintenance costs, rewards to informants, staff bonuses, as well as expenses on vehicles, stationery, and advertising are some that have been cited. Tax officials see the instructions as austerity measures.

HoDs (commissioner rank and above) are allotted up to Rs 60-90 lakh (varies region-wise) per annum, for outsourcing of services.

A letter issued on Tuesday