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 However the bill was later scrapped because of wealth tax act being repealed.[1]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 to 50,000 (US$700) without deduction of TDS.[2]

Political parties have deposited huge cash after demonitization. BSP (Bahujan Samajwadi Party) don't have any donation by cheque, 100% is cash.[3][4] Congress used to be the biggest party to get cash, now it is BJP.[5]

Amendments[edit]

"The Taxation Laws (Second Amendment) Act, 2016" is an amendment Act, No.48 of 2016, to Income-tax Act, 1961 and The Finance Act, 2016. It was passed during the 2016 Winter Session of Indian Parliament.[6] 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.[7][8]

The Taxation Laws (Second Amendment) Bill, 2016, was introduced in the Lok Sabha during the 2016 Winter Session of Indian Parliament.[9] The bill was introduced on 28 November 2016, by Finance Minister of India, Arun Jaitley.[10] The bill was passed by Speaker Sumitra Mahajan, with a voice vote without debate in Lok Sabha.[11][12][13] The Government, clarified that gold asset in form of jewellery of People of India, were not for taxation as per the introduced Bill.[14] The Opposition, parties, expressed anger against the passed bill in Lok Sabha, that a debate was not held.[15]

Simplification[edit]

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.[16]

Notes[edit]

External links[edit]