Income Tax Act,1961

(a) Income tax in India is governed by the Income Tax Act,1961

(b) It came into force w.e.f.1.4.1962

(c) The Act contains 298 sections and XIV Schedules

(d) The Finance Act shall bring amendment to this Act.

(e) The Law provides for determination of taxable income, tax liability and procedure for assessment, appeal,

penalties and prosecutions.

1. Finance Act

(a) Finance Minister presents this as Finance Bill in both the Houses of Parliament.

(b) Part A of the Budget contains proposed policies of the Government in fiscal areas.

(c) Part B contains the detailed tax proposals.

(d) Once the Finance Bill is approved by the Parliament and gets the assent of the President, it becomes the

Finance Act.

(e) The rate of tax at which income shall be charged is prescribed in the Schedule I of Finance Act.

(f) The Finance Act brings amendments to both the Direct Tax Laws (i.e. Income Tax, Wealth Tax etc.) and

Indirect Tax Laws (i.e. law relating to Central Excise, Customs Duty, Service Tax etc.)

2. The Income Tax Rules, 1962

(a) The administration of Direct Taxes is vested with Central Board of Direct Taxes (CBDT).

(b) Under Section 295 of IT Act, CBDT is empowered to frame rules from time to time to carry out the purpose

and proper administration of the Act.

(c) All forms, procedures and principles of valuation of perquisites prescribed under the Act are provided in

the Rules framed by CBDT.

We will be discussing the below under the Income Tax Act,1961:

Tax on Income from Salary

Definition of Salary:  If the following amount received by an employee from his employer the amount so received is defined ...
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Capital gains tax 2017-18

Capital gain tax rate 2017 under Income tax act, 1961. Capital gain Short term capital gain tax rate Long term ...
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Income Tax Slabs for individual for the fiancial year 2017-18

Income Tax Slabs for individual Effective Income Tax slab for individuals Rates of Income Tax Income up to Rs. 2.5 ...
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Deduction in Computing Total Income

INTRODUCTION In order to further the government policy of attracting investment and activity in the desired direction and to provide ...
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Assessment Procedure

Inquiry before assessment. [ Section 142] Inquiry : (1) The Assessing Officer has power to make inquiry from any person ...
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Refund of taxes under the Income Tax Act,1961

WHEN RIGHT TO CLAIM REFUND ARISES [Sec. 237] Where any person satisfies the Assessing Officer that the amount of tax ...
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Return of Income and Assessment Procedure

RETURN OF INCOME The starting point for the assessment of income is furnishing of return of income. Filing of return ...
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Advance Payment, Collection and Recover of Tax

Provisions relating to Advance Payment of Tax SECTION 4: TAX PAYABLE BY AN ASSESSES SHALL BE PAID IN ADVANCE Who ...
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Interest under Income Tax Act

Interest For failure to deduct or pay any TDS [Sec. 201(A)]: Where a person responsible for deducting tax at source ...
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Tax deducted and collected at source

DEDUCTION OF TAX AT SOURCE (TDS) LIABILITY FOR TDS Any person responsible for making payment of certain category of incomes ...
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