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Kindly explain the relation between the Income tax Act and Finance Act?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Renju M.R asked about 2 years ago

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered about 2 years ago

> Kindly explain the relation between the Income tax Act and Finance > Act? **Finance Act** --The Finance Act is an important Act in India and the Central Government, through this Act, gives effect to financial proposals at the beginning of every Financial Year. --The Act applies to all the States and Union Territories of India unless specified otherwise. --Every Financial Year therefore sees a new Finance Act thus making this Act one that renews itself each year. All the Governmental financial policies are included in this Act. The existing policies, new policies, as well as changes made to existing policies are all included here. Every Finance Act is assented by the President of India. --The Finance Act is responsible for laying down the tax slabs that applies to taxpayers. The Act includes various details related to Income through Salary Agricultural Income Tax slabs for Women Tax slabs for Senior Citizens Tax slabs for Very Senior Citizens Income Tax Surcharges Taxes chargeable to companies Advance tax **Income tax act** --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. Recently the Government of India has brought out a draft statute called the "Direct Taxes Code" intended to replace the Income Tax Act,1961 and the Wealth Tax Act, 1957. Public Commentary has been called for the Draft Bill.The redrafted bill is supposed to be made public soon

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Surbhi answered about 2 years ago

**Income Tax Act 1961** It specifies the various provisions for determining taxable income, tax liability, procedure for assessment, appeals, penalties, and prosecutions. It contain 298 sections and XIV schedules. **Finance Act** The finance minister of india presents a finance bill in the parliament every year, which consists of various amendments proposed to be made in the direct and indirect tax. If the bill is passed by both the houses of parliament and the assent of the president of india is received, it becomes the finance bill. The proposed amendments are then incorporated in the income tax act, which becomes applicable from the very first day of the next financial year.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Urmil answered about 2 years ago

Finance Act Every Financial Year therefore sees a new Finance Act thus making this Act one that renews itself each year. All the Governmental financial policies are included in this Act. The existing policies, new policies, as well as changes made to existing policies are all included here. Every Finance Act is assented by the President of India. Important Elements of Finance Act All the elements included in the Finance Act associated with a particular Financial Year are of course important. Even so, there are particular elements that take precedence over the others. The most important element is the rules laid down in the Act with respect to Income Tax Rates. Every year, the Act lays down in detail all the associated provisions related to Income Tax in the country. Since this applies to a large number of taxpayers, it is considered one of the most important elements. The Finance Act is responsible for laying down the tax slabs that applies to taxpayers. The Act includes various details related to Income through Salary Agricultural Income Tax slabs for Women Tax slabs for Senior Citizens Tax slabs for Very Senior Citizens Income Tax Surcharges Taxes chargeable to companies Advance tax These are a few important elements included and elaborated upon in detail in the Finance Act for a particular year.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered about 2 years ago

**Finance Act** ----------- Every Financial Year therefore sees a new Finance Act thus making this Act one that renews itself each year. All the Governmental financial policies are included in this Act. The existing policies, new policies, as well as changes made to existing policies are all included here. Every Finance Act is assented by the President of India. **Important Elements of Finance Act** --------------------------------- All the elements included in the Finance Act associated with a particular Financial Year are of course important. Even so, there are particular elements that take precedence over the others. The most important element is the rules laid down in the Act with respect to Income Tax Rates. Every year, the Act lays down in detail all the associated provisions related to Income Tax in the country. Since this applies to a large number of taxpayers, it is considered one of the most important elements. The Finance Act is responsible for laying down the tax slabs that applies to taxpayers. The Act includes various details related to Income through Salary Agricultural Income Tax slabs for Women Tax slabs for Senior Citizens Tax slabs for Very Senior Citizens Income Tax Surcharges Taxes chargeable to companies Advance tax These are a few important elements included and elaborated upon in detail in the Finance Act for a particular year. **Direct Taxes** ----------- The Finance Act for a particular financial year also includes the amendments that have been made with respect to Direct Taxes. The Amendments made under various sections are noted down in this section of the Finance Act and each amendment of every section is noted down separately. Also included in the Finance Act is the details of the insertion of new sections, if any.

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