The Income-tax Act, 1961

The Income-tax Act, 1961
The Income-tax Act, 1961
Parliament of India
	Long title An Act to consolidate and amend the law relating to income-tax and super-tax. ;
Citation	Act 43 of 1961
Enacted by	Parliament of India
Commenced	1 April 1962
	Status: In force

The Income-tax Act, 1961 is the charging statute of

Direct Taxes Code" intended to replace the Income Tax Act, 1961 and the Wealth Tax Act, 1957. However the bill was later scrapped.^[1]

Amendments

The Government of India presents finance bill (budget) every year in the month of February. The finance budget brings various amendments in Income-tax Act, 1961 including tax slabs rates.[2] The amendments are generally applicable to the next following financial year beginning from 1 April unless otherwise specified. Such amendments become part of the income tax act after the approval of the president of India.

The partial budget which is presented for Non Full financial year (generally in the year of General Election in India) is called VOTE ON ACCOUNT. This is presented for the sake of continuation of those compulsory expenditures of Government which are necessary for the smooth functioning of Country and a full fledged budget is presented after a new government is formed.

Scope of total income

The scope of Total Income depends on the category of a taxpayer and his residential status in India. For example, a person resident in India is liable to pay income tax in India on his total world income. On the other hand, a person non-resident in India is liable to pay tax in India only on his Indian income. Under Income-tax Act, there are five heads of income - Salary, House Property, Business or Profession, Capital Gains and Other Sources. Total income consists of income computed under these heads. The tax on total income is computed as per the tax rates specified for the year in which income is earned..

Simplification

Union Government sets up Arbind Modi-led panel to overhaul, simplify income tax laws. On 22 November 2017, the government formed a task force to draft a new direct tax law to replace the existing Income Tax Act, which has been in force since 1961. Arbind Modi, Member, Central Board of Direct Taxes (CBDT), will lead a six-member panel. Chief Economic Advisor Arvind Subramanian will be apermanent special invitee on the panel.^[3]

Notable cases

Notes

^ "Ministry of Finance - Direct Taxes Code". Archived from the original on 18 June 2010. Retrieved 20 May 2010.
^ "Tax Rates-Individual". Galactic.
^ "Govt sets up Arbind Modi-led panel to overhaul, simplify income tax laws", Business Standard, Press Trust of India, 23 November 2017

External links

[1]

[1] "Ministry of Finance - Direct Taxes Code". Archived from the original on 18 June 2010. Retrieved 20 May 2010.

[2] "Tax Rates-Individual". Galactic.

[3] "Govt sets up Arbind Modi-led panel to overhaul, simplify income tax laws", Business Standard, Press Trust of India, 23 November 2017

[1]

[3]

v t e Taxation in India
Taxes	Central Excise Duty Goods and Services Tax Income tax in India Securities Transaction Tax Service tax Value-added taxation
Bodies	CBDT Chairperson, Central Board of Direct Taxes Investigation Division of the Central Board of Direct Taxes Central Board of Excise and Customs Chairperson Central Board of Excise & Customs Income Tax Department Central Economic Intelligence Bureau Directorate of Revenue Intelligence Tax Administration Reform Commission
Legislations	Benami Transactions (Prohibition) Act, 1988 Expenditure Tax Act, 1987 Finance Act (India) Gift Tax Act, 1958 Interest Tax Act, 1974 The Income-tax Act, 1961 Wealth Tax Act, 1957
Schemes	Income declaration scheme, 2016 Pradhan Mantri Garib Kalyan Yojana Voluntary Disclosure of Income Scheme
Compliance	Income Tax Returns ITR-2 SUGAM ITR-4S Indian tax forms Tax Collected at Source Tax Deducted at Source Tax Deduction and Collection Account Number
Notable cases	Cairn Energy and Government of India dispute