This Act applies equally to India in India effective from 1st April, 1962. Divorce in 298 streams, many sub sections and 14 schedules, this Act is the basis of the current income tax system. Income tax Rules 162 have been made for easy governance of this Act. Changes and amendments are made by income tax and passing the financial act per year in different countries. Thus in the present system, the operation of tax assessment, tax collection, tax administration and return etc. is regulated.
Under the following three Acts and Statutes: -
Income Tax Act, 1961
Income Tax Rules, 1962
Annual finance act, 2012-13
Objectives of the Income Tax Act, 1961
The main objectives of the Income Tax Act, 1961 are as follows:
- To ensure the income generation of the government.
- Prevent fraud and tax evasion
- To cut down on countries and give a legal framework and method for depositing taxes.
- Penalty and penalty imposed on tax evasion
- Make arrangements for tax payments, tax refund etc.
- Establishment of Tribunal for Appeal and Reconsideration
