A Quick Guide To Income Tax Act 1961
About Income Tax Act, 1961 The Income Tax Act, 1961 is an act to levy, administer, collect, and recover income tax in India. The act is effective from 1 April 1962. It consists of 298 sections and 14 schedules. The act helps determine a taxpayer’s taxable income, tax liability, appeals, penalties, and prosecution. The government has been making amendments to the act from time to time. The Income Tax Act is a comprehensive statute that focuses on the different rules and regulations that govern taxation in the country. It provides for levying, administering, collecting and recovering income tax for the Indian government. It was enacted in 1961. Income Tax Rules, 1962 Income Tax Act, 1961 divides the incomes under following five heads for taxation: Salary Income from house property Capital gains Profit and gains from business or profession Income from other sources. Other sources will include all incomes which do not fall in any of the other four categories. Most prominent other i...