T A X M A N N® ' S. Income Tax. Act. With. All About. Income-tax Act. (A Desktop Application). 60th Edition. Finance Act Get the latest Income tax laws, income tax Act, tax exemptions, tax deductions, etc. Taxmann is the most reliable online source for research on income tax, indirect tax & GST, company law, IFRS, Ind AS & international taxation related information . Company & SEBI Laws. Companies Act, Securities Exchange Laws.
|Language:||English, Spanish, Japanese|
|Distribution:||Free* [*Sign up for free]|
For details, see Taxmann's Master Guide to Income-tax Act. 2. For effective date for the applicability of the Act in the State of Sikkim. Choose Acts: . Section - 5A. Apportionment of income between spouses governed by Portuguese Civil Code Income deemed to accrue or arise in India . [Percentage of Government grant for considering university, hospital etc. as substantially financed by the Government for the purposes of clause (23C) of section.
Develop new scientific tools, concepts and theories, which would facilitate reliable and valid study of human behavior. In the present research article, prevailing facts were taken as for initiating a comparative study and for the purpose, statutory literatures, regulations and related statutes were used besides going through some of research commentaries relating with the subject.
Also to identify related provisions proposed under the new statute as the remedial provisions for all lacunae. For this a comparative study has been done, commentaries have been drawn and recommendations have been added to each. As the nature of ex-post facto research methodology suggests that performances are taken in the way as they are and examined separately or wholly their impact on the explained variables. Also the inferences about relations among variables are made, without direct intervention.
Therefore for this research article Ex-post facto research methodology has been adopted. Also for the comparative study of respective provisions a descriptive coverage has been opted, commentaries and recommendations have been drawn. For drawing commentaries and making appropriate interpretation of statutes, statistical applications are least appropriate.
Ex-post facto research methodology is systematic empirical inquiry in which the researcher does not have direct control of independent variables because their manifestation has already occurred or because they are inherently not manipulative. Inferences about relations among variables are made, without direct intervention, from concomitant variation of independent and dependent variables.
This kind of research is based on a scientific and analytical examination of dependent and independent variables Saravanavel, Taxes in India can broadly be classified into direct and indirect.
Direct Tax includes Income tax and Wealth tax. The most significant of direct taxes is income tax. The levy of income tax is governed by the Income-Tax Act, The Act got enacted by the Parliament in the twelfth year of the republic of India as 43 rd statute of However, its commencement was done w. Stupendous Size: Tedious Updating cum Fictitious Amendment Practice: The statute is more than five decades old and since its birth; it has accommodated the recommendations and confusions of various law makers.
It is said to be an obsolete law until get updated and amended periodically. The Act undergoes changes every year with additions and deletions brought out through a Finance Act passed by the Parliament. But then to overhauling of the Act has never been done. In other words amendment to a statute is said to be fictitious if every year it need to get loaded with new provisions. This has made it a law which is hard to read; perplex to understand and difficult to interpret.
The court rulings, notifications, circulars have fuelled the jigsaw puzzle. The result is a galaxy of perpetual controversies. While there is an honest attempt to rectify some of the anomalies in the law, these were only the tip of an ice-berg. Inclusive Coverage: Lacks Four Corners Rule Though, income has been classified exclusively as under, making its coverage exhaustive but still the definition carries an ambiguity.
Residential Status vs. Incidence of tax on the income depends on residential status of an assessee. Under the Act, citizenship is considered to be a narrower term. This creates a possibility where a foreigner may get his income charged in India and a citizen of India not being liable to pay, depending upon their residential status. Besides this, Double Taxation Avoidance Agreement DTAA provisions are there consisting of couple of sections for proving double taxation relief to residents through credits under the Act and under the tax treaties.
But having treaties with the rest of world and that to with each country is not possible. And thus compromising provisions are governing the Reliefs.
To promote economic development, provisions supporting tax holidays and deductions are also being incorporated under the prevailing Act.
Accordingly, the Act allows a tax benefits for undertakings engaged in infrastructural projects and development of industrial parks including Special Economic Zones SEZs. Further there is concessional rate of taxation for income from exports and tax incentives for the establishment of industries in areas notified as backward or underdeveloped. Sunset Clause vs. Perpetual Incentive The clause in a statute providing that the Act or part of it will cease to have effect at some future time is known as a sunset clause.
Popular provisions like Section 10A, Section 10B are few of them. At present many of the clauses have been ceased to exist as their utility came to an end. For such issues a permanent provisions to be made to encourage people. This can be done by proving them the benefit in minimal percentages perpetually rather having a high percentage benefits for a short span.
Non Compliance and Compatibility with Other Statutes: Was not the rate decided for companies by the relevant Finance Acts do sufficed? How a Company was able to dodge over number of years even after making stringent amendments year by year? Why a statute loaded with number of provisions became helpless? Selection of the Authority for Advance Rulings AAR The Authority for Advance Rulings AAR , constituted under the Act is authorized to determine any question of law or facts in relation to transactions which have been undertaken or are proposed to be undertaken by a non-resident.
Lack of public confidence in the selection procedure for constituting the Authority, and limiting the field of choice for selection of members of the Authority to the Indian Revenue Service Officers and Indian Judicial Service Officers to be the main reasons for the Authority for Advance Rulings being no longer a preferred method of ensuring certainty in relation to the tax implications of cross-border transactions.
The intent of strengthening the AAR by constituting additional benches and enlarging the scope of the Income Tax Settlement Commission to facilitate quick dispute resolution is also among the notable features of the new Code. Multiple Rates of Taxation Certain reservations and discriminations can be found in the present statue which may not be having any vital grounds of its implementation. In the present statute rates can be classified into two, rates given by the Relevant www.
Also, rate for a resident and a non resident gets varied. Favorable tax treatment is available under these treaties. The lack of effective exchange of information is one of the key criteria in determining harmful tax practices under DTAA. Also, recent treaties of certain countries have contained an article intended to prevent treaty shopping, which is the inappropriate use of tax treaties by residents of third states. Present statute is not having any coping provisions against such treaty shopping.
There are many other provisions which are lingering in darkness of ambiguity; many more haunted by semantic and super technical interpretations and few diseased by redundancy. These await their omission or immediate alteration. The Code is going to be the most awaited statute to overcome the lacunae.
To reduce the scope for dispute and minimize litigation is another object of having the Code. Consolidated Statute: All the direct taxes have been brought under a single Code and compliance procedures unified.
This will eventually pave the way for a single unified taxpayer reporting system. Lucid Language: With the expansion of the economy, the number of taxpayers can be expected to increase significantly. Therefore, it is necessary to keep the cost of compliance low by facilitating voluntary compliance by them. This is sought to be achieved, inter alia, by using simple language in drafting so as to convey, with clarity, the intent, scope and amplitude of the provision of law.
Each sub-section is a short sentence intended to convey only one point. All directions and mandates, to the extent possible, have been conveyed in active voice. Similarly, the provisos and explanations have been eliminated since they are incomprehensible to non-experts. The various conditions embedded in a provision have also been nested. More importantly, keeping in view the fact that a tax law is essentially a commercial law, extensive use of formulae and tables has been made.
Reducing Scope for Litigation: In order to avoid ambiguity in the provisions that has invariably given rise to rival interpretations, the Code overcomes even these limitations. The objective is that the tax administrator and the tax payer are ad-idem on the provisions of the law and the assessment results in finality to the tax liability of the tax payer.
The structure of the Code has been developed in such a manner that it will cope up easily with the changes of a growing economy without making it to get amended every now and then. In this light exhaustive coverage and general principles have been incorporated. Therefore, to the extent possible, changes in economic scenario will not going to make the Statute to get overhauled frequently. Scattered provisions of same nature have been rearranged and consolidated in the present code.
Elimination of Regulatory Functions: Traditionally, the taxing statute has also been used as a regulatory tool. However, with regulatory authorities being established in various sectors of the economy, the regulatory function of the taxing statute has been withdrawn. This has significantly contributed to the simplification exercise.
Providing stability: At present, the rates of taxes are stipulated in the Finance Act of the relevant year. Therefore, there is a certain degree of uncertainty and instability in the prevailing rates of taxes. Income Tax. Close [X].
Forgot your password? Click here New User? Sign Up Now! Monday 15 Apr Research Box.
Home Case Laws. All About Income Tax Act.
Customer Care. If you do not wish to log-out, choose 'Let me continue'. Choose Acts:. Income-Tax Act, as amended by Finance Act. Section Wise Chapter Wise. Section No: Section - 1.
Section - 2. Section - 3. Section - 4. Section - 5. Section - 5A. Section - 6. Section - 7. Section - 8. Section - 9. Section - 9A.
Section - Section - 10A. Section - 10AA.