Income Tax Act,1961

Income tax act,1961

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Created By Admin Last Updated Fri, 17-Jul-2020

Income Tax Act,1961

The Income-tax Act, 1961 is the Indian law which details out a levy of taxes, administration, collection, and recovery of Income Tax from assessees. An assessee can be individual, company, firm, sole proprietor, trust, and so on. Every year, the Finance minister of India presents the finance bill (budget) in February which includes various updates, amendments, new laws as per of Income Tax act. The amendments and updates are generally applicable to the next following financial year beginning from 1 April unless otherwise specified. Such amendments become part of the income tax act after the approval of the president of India.

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.

This act forms an important part of CA curriculum. Students are expected to develop expert knowledge of this Act while appearing for the final examination. A qualified CA especially in practice and in the Taxation field is expected to have in-depth knowledge and should be aware of recent updates in the Tax law.