What Is Income Tax Act 1961 – Rules And Sections?
“The best thing to get more understand in this world which is income tax” these are the words of Albert Einstein. Such are the complexities of Acts, rules, sections, amendments, lapses, and many more for a common man to understand easily. To make it simple the Constitution of India under Article 265 by Schedule VII of the Union List in Entry 82 has given the power to the central government to levy a tax on any income other than agricultural income on its citizens by the Indian Tax Act, 1961.
The CBDT or the central board of direct taxes is the governing and administrative body of the income tax department. CBDT is a statutory authority formed by the Central Board of Revenue Act, 1963.
The income tax act 1961 was basically aimed to consolidate and amend the rules governing the taxation of the country. IT is the statute which lists all taxes in India including their levy, collection, administration, and recovery. This Income-tax Act, 1961 was tried to be replaced by ‘Direct Taxes Code Bill’ in 2010 by tabling it in the parliament. This was not successful and eventually lapsed after the revocation of the wealth tax actin 2015.
Sections Of Income Tax Act:
The income tax act, 1961 has 23 chapters in the arrangement of sections which deal with diverse aspects of taxation in the country. These 23 chapters deal from the basic collections to the various intricacies of the income tax provisions. Some of them are listed below:
- Chapter I – Sections 1 – 3 deals with the preliminaries of income tax
- Chapter II – Sections 4-9 with subsections -deals with the basic charges of income tax
- Chapter III- Sections 10 – 13 with many subsections deals with the income which do not form part of the total income
- This goes on up to chapter 23 with sections 281 – 298 dealing with the miscellaneous aspects of income tax act 1961
Each and every section has an impact on Indian income tax act 1961 and defines the mode of administration of income tax.