Introduction
In India, income tax laws are governed by the provisions of The Income Tax Act,1961. The act comes with a wide range of sections. Every section caters to different aspects of taxation in India. The act also provides for levy, administration, collection and recovery of income tax in India.
What is Tax laws?
The income tax act consists of 23 chapters and 298 sections approximately.The Income Tax Law consists of Income Tax Act 1961, Income Tax Rules 1962, Notifications and Circulars issued by the Central Board of Direct Taxes (CBDT), Annual Finance Acts and judicial pronouncements by the Supreme Court and High Courts. The act is a comprehensive statute that focuses on different rules and regulations that govern taxation in the country.
Who is eligible to pay?
The Government of India make amendments or changes to the income tax act every year through budget. The budget is announced every year, usually in the month of February, by the finance minister of the country.
A detailed breakdown of the procedure for filing the tax
For example, the Finance Minister announced that the tax rate for individuals in the lowest tax bracket of Rs. 2.5 lakh to 5 lakh would be cut from 10% to 5% in FY 2017-18. Similarly, tax on Long Term Capital Gains (LTCG) was reintroduced during the FY 2018-19 budget. As a result, all long term capital gains more than Rs. 1 lakh from equity share or equity-oriented mutual funds will be at the rate of 10%.
Such changes becomes a part of the Income Tax Act from the following financial year (beginning from 1st April) following the approval from the President of India.
