The Income-tax Act, 1961

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The Income-tax Act, 1961
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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
Date commenced 1 April 1962
Status: In force

The Income-tax Act, 1961 is the charging Statute of Income Tax in India. It provides for levy, administration, collection and recovery of Income Tax. The Government of India brought a draft statute called the "Direct Taxes Code" intended to replace the Income Tax Act,1961 and the Wealth Tax Act, 1957. However the bill was later scrapped because of wealth tax act being repealed.[1]

Provisions[edit]

Section 192A allows a PF withdrawal of 50,000 (US$780) without deduction of TDS.[2]

Section 13A[edit]

This is a controversial section[3] of the Income Tax Act in India.

The act in Verbatim[4] states[5] that,

Special provision relating to incomes of political parties Any income of a political party which is chargeable under the head 2 ]" Income from house property" or" Income from other sources" or any income by way of voluntary contributions received by a political party from any person shall not be included in the total income of the previous year of such political party: Provided that- (a) such political party keeps and maintains such books of account and other documents as would enable the 3 Assessing] Officer to properly deduce its income therefrom; (b) in respect of each such voluntary contribution in excess of twenty[6] thousand rupees, such political party keeps and maintains a record of such contribution and the name and address of the person who has made such contribution; and (c) the accounts of such political party are audited by an accountant as defined in the Explanation below sub- section (2) of section 288.

Recently, there has been lot of uproar[7] by the civil society against this act.[8]

Political[9] parties have deposited huge cash after demonitization. BSP (Bahujan Samajwadi Party don;t have any donation[10] by cheque, 100% is cash). Congress[11] used to be the biggest party to get cash, now it is BJP.

Amendments[edit]

"The Taxation Laws (Second Amendment) Act, 2016" is an amendment Act, No.48 of 2016, to Income-tax Act, 1961 and the The Finance Act, 2016. It was passed during the 2016 Winter Session of Indian Parliament.[12]

The Taxation Laws (Second Amendment) Bill, 2016 was passed in Lok Sabha as a money bill on 29 November 2016 enabling people to declare their undisclosed incomes after Indian 500 and 1000 rupee note demonetisation.[13][14]

The Taxation Laws (Second Amendment) Bill, 2016, was introduced in the Lok Sabha during the 2016 Winter Session of Indian Parliament.[15] The bill was introduced on 28 November 2016, by Finance Minister of India, Arun Jaitley.[16]

The bill was passed by Speaker Sumitra Mahajan, with a voice vote without debate in Lok Sabha.[17][18][19]

The Government, clarified that gold assets in form of jewellery of People of India, were not for taxation as per the introduced Bill.[20]

The Opposition, parties, expressed anger against the passed bill in Lok Sabha, that a debate was not held.[21]

Notes[edit]

  1. ^ Ministry of Finance Direct Tax Code Page
  2. ^ "Individuals' advance tax date is 3 months earlier this year: Pay by June 15 else bear heavy interest", The Economic Times, 14 June 2016 
  3. ^ "Tax Exemption to Political Parties [Section 13A] – Income Tax". 27 February 2016. 
  4. ^ "Section 13A of Income-Tax Act, 1961 - Lawnotes.in". 
  5. ^ "Income Tax Department". 
  6. ^ http://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
  7. ^ "Tax exemptions to political parties subject to conditions, says government - Times of India". 
  8. ^ "Deposit in bank accounts of political parties exempt from tax". 
  9. ^ [author missing] (1 January 2000). "Corruption Flows From Donations Made To Political Parties". Times Now. 
  10. ^ "Why political parties are not paying tax in India - Your Finance Book". 
  11. ^ http://www.rediff.com/news/slide-show/slide-show-1-tax-rebates-congress-tops-list-with-rs-300-cr-exemption/20120927.htm
  12. ^ "Taxation Laws second amendment bill passes in Lok Sabha". Indian Express. 30 November 2016. 
  13. ^ "Parliament Winter Session: Govt keen on proper discussion on GST Bills", The Indian Express, 29 November 2016 
  14. ^ "Lok Sabha passes Bill to tax black money deposits post demonetisation", The Times of India, 29 November 2016 
  15. ^ "Lok Sabha passes IT amendment bill". Hindustan Times. 29 November 2016. 
  16. ^ "Lok Sabha passes Income Tax amendment bill". The Times of India. 29 November 2016. 
  17. ^ "Amendment Bill, will tax undisclosed money". Economic Times. 1 December 2016. 
  18. ^ "Bill to tax deposits". The Hindu. 29 November 2016. 
  19. ^ "No debate on Taxation laws bill". Indian Express. 30 December 2016. 
  20. ^ "Government clears, questions of taxation laws". Business Standard. 1 December 2016. 
  21. ^ "Opposition protest on Bill". Indian Express. 30 November 2016. 

External links[edit]