Income Tax Act

The Income Tax charging statute in India is the Income-tax Act, 1961. It outlines the procedures for levying, managing, collecting, and recovering income taxes. A draft law known as the “Direct Taxes Code” was introduced by the Indian government with the intention of superseding the Income Tax Act of 1961 and the Wealth Tax Act of 1957.

Promoting price stability, full employment, economic growth, lowering BOP challenges, managing cyclical swings, and non-revenue goals are the principal goals of the Income Tax Act.

Because of their progressive tax structure, direct taxes reduce income inequality, demonstrating the significance of taxes. The taxation of citizens is based on their financial situation, which promotes social and economic equality.

The amount of compensation that should be paid to a certain employee is determined using payment and deduction data for the designated period. Details on income taxes: Section 192 of the Income Tax Act states that income tax, or tax deducted at source, must be withheld by the employer from employee salary.