Income-tax Act, 1961, being a Central enactment, it is the Central Government that is directly responsible for its administration and jurisdiction etc. Ministry of Finance looks after the enactments with the help of Ministry of Law. The Central Board of Direct taxes is a body different from the Central Government. The powers given to either under the Act are different and distinct. G. Kuppaswamy Naidu Memorial Sports Trust v CIT  99 ITR 530 (Mad).
Powers of Central Government :
(a) To specify an area as urban area for the purposes of agricultural income as well as for treating it as capital asset.
(b) To specify securities, bonds or savings certificates, interest whereon will be tax free in the hands of non-residents or non-resident Indian citizens u/s 10(4) and 10(4b).
(c) Approval of contract of service under various sections is done by the Central Government. Illustrative list of such sections include 10(6), 10(6A)710(6B) etc.
(d) Monetary limit on encashment of leave at the time of retirement for tax exemption is determined by the Central Government u/s 10(10AA).
(e) Tax free allowance u/s 10(14) (i) has to be notified by the Central Government.
(f) Under section 10(15), it has powers to notify the Bonds or financial institutions and rate of interest for exemption.
(g) It has also to notify institutions, trusts etc. for exemption of income from tax u/s 10 (23), (23A), (23C), (23D) etc.
(h) Rules are made u/s 72A for purposes of amalgamation etc.
(i) Institutions are notified by Central Government for purposes of section 80G.
(j) Under section 8OL, debentures are notified for exemption of interest.
(k) It enters into Agreements for avoidance of double taxation, with foreign countries,
(l) It appoints income-tax authorities u/s 117,
(m) Income-tax Settlement Commission is constituted by the Central Government u/s 245B.
(n) It also constitutes Appellate Tribunal u/s 252(1).
(o) It constitutes appropriate authorities u/s 269UB.
(p) Information as regards assessees is published u/s 287 by the Central Government.
(q) Immunity from prosecution in certain cases can be granted u/s 291.