The government has granted a one-year extension to Ravi Agrawal as Chairman of the Central Board of Direct Taxes (CBDT), extending his tenure until June 30, 2026. The Appointments Committee of the Cabinet approved the re-appointment, which will be effective from July 1, 2025.

Agrawal, a 1988 batch Indian Revenue Service (IRS) officer from the income tax cadre, initially took over as Chairman of the CBDT in June 2024, succeeding Nitin Gupta, who is a 1986 batch IRS officer. Before becoming the Chairman, Agrawal served as a member of the CBDT administration since July 2023, gaining considerable knowledge of the department's operations and policy-making processes. He was due to retire on June 30, 2025.

The re-appointment is on a contract basis, with terms and conditions applicable to re-employed Central Government officers, in relaxation of the Recruitment Rules.

The CBDT is the apex policy-making body of the Income Tax Department. As Chairman, Agrawal is responsible for leading the direct tax administration of India, which includes formulating and implementing direct tax policies, overseeing the Income Tax Department, and advising the Finance Minister on direct tax matters. The CBDT is headed by a chairman and can have up to six members who are of the rank of special secretary.

Recently, the CBDT has directed Income Tax Department officials to ensure due diligence while issuing notices for scrutiny and assessment of a taxpayer's return, emphasizing that all questions sent to a taxpayer are justified and that irrelevant queries are completely avoided. The board has also instructed all principal chief commissioners of Income Tax to exercise effective supervision over assessing officers.