Indian income tax

Entry 82 of the Union List of the Seventh section of the Constitution of India regulates income taxes in India and gives the central government the authority to tax non-agricultural income. The Income Tax Act of 1961, the Income Tax Rules of 1962, the Central Board of Direct Taxes' (CBDT's) Notifications and Circulars, the yearly Finance Acts, and judicial rulings by the Supreme and high courts make up the body of income tax legislation.

Since ancient times, sovereign governments have had the power to levy taxes. The pillar inscription at Lumbini, created by Ashoka, is the first archaeological proof of taxes in India. The inscription claims that Lumbini's residents received tax reductions. There is much more to know about tax exemption.

More to know at 80g.

Between 1939 and 1956, there were 29 amendments to the 1922 statute. The idea of capital gains has undergone several revisions since 1946 when a tax on them was enacted. In 1956, Nicholas Kaldor was chosen to look into the Indian tax structure in light of the funding requirement for the Second Five-Year Plan. He provided a thorough report for a synchronized tax system, and as a result, the Wealth Tax Act of 1957, the Expenditure Tax Act of 1957, and the Gift Tax Act of 1958 were all passed into law.

The 1922 law had 29 revisions between 1939 and 1956. Since 1946, when a tax on capital gains was imposed, the concept of capital gains has undergone several modifications. In 1956, Nicholas Kaldor was recruited to investigate the Indian tax system in light of the Second Five-Year Plan's budgetary needs. The Wealth Tax Act of 1957, the Expenditure Tax Act of 1957, and the Gift Tax Act of 1958 were all brought into law as a consequence of his exhaustive analysis of a coordinated tax system. To replace the Income Tax Act of 1961 and the Wealth Tax Act, the Finance Minister introduced the Direct Taxes Code Bill before parliament on August 30, 2010. The bill could not pass, however, and lapsed after the revocation of the Wealth Tax Act in 2015.

The government has made certain adjustments to the Income Tax Act of 1961 in the Finance Act of 2021, including increased tax incentives for the International Finance Service Center and amendments to the taxation of income. You can see the matter on section 12a of income tax act.