Q: What are the constitutional provisions of income tax act, 1961 ?

Ans: The constitutional provisions of income tax are given from article 265 to article 289 of indian constitution. 

According to article 265, only the authority of law can collect the taxes.

The article 266 talks about the consolidated funds and public accounts of India as well as the states.

Consolidated funds are that funds in which all the reciepts of government of India are credited like tax, loans taken , treasury bills , etc.

Article 267

Contigency funds are those funds that are maintained by president as well as held by finance secretory on behalf of president. 

Contingency funds are used at the time of emergency such as natural calimities as well as crises like floods, tsunamis and earthquakes.

Article 268

Under this article, it is explained that the duties are levied by the Union but they are collected as well as appropriated by the states. For eg. Stamp duties, excise duties on medical as well as toilet preparations.

Article 269

Taxes would be levied as well as collected by central government but assigned to the states.

Article 270

This article talks about those taxes which are levied as well as distributed between union and states except A- 268, 269 and 269 A.

Cess and Surcharge

Cess is known as a tax on tax. Cess is explained under article 270 of constitution of India and it is also called subtax. Cess is for a specific purpose as well as the amount of cess goes to consolidated fund of India.

For eg; Educational cess as well as Swachh Bharat cess etc.

Article 273

The article 273 grants in lieu of export duty on jute as well as jute products in states Assam, Bihar, Orissa, and West bengal and this grant shall be charged on the consolidated fund of India (CFI).

Article 274

The article 274 talks about the taxes in which states are interested such as agricultural income, for which the prior recommendation of president is needed to bills affecting taxation in which states are interested.

Article 275

The article 275 talks about that grants provided by Union to State for schemes as well as developments , welfare of Scheduled  castes Scheduled tribes and thirdly the administration development of autonomous districts of Assam.

Article 276

The sixteenth amendment act of constitution of India amended article 276.

The article talks about that the extra taxes will be levied on profession, trades as well as callings and employements and the limit of these taxes are Rs.2500.

Article 279A

The article defines GST council i.e clause 1 of the article says that when the 101 amendment passes, the president constitutes a council namely GST council.

Article 282: 

The Union or a state may take any grants for any public purpose , notwithstanding that the purpose is not one with respect to which Parliament or the Legislature of the state , as the case may be, may make laws.

Article 286

The article 286 says that the state cannot authorize the imposition of tax on the supply of goods as well as services , where such supply takes place outside the state or where the export of the goods as well as services takes place out of territory of India.

Article 289

This article talks about exemption of property as well as income of state from union taxation.









Comments

Post a Comment

Popular posts from this blog

Q: What are the types of capital gain ?

 Ans: The capital gain means that the profit which is earned from the sale of an asset. The capital gain is the difference of actual price at which the asset was acquired and the price at which the asset was sold or transferred. The capital gain can be either long term or short term and it depends upon the period of holding .The tax in long term is more as compared to the tax in short term. The rate of tax on long term ranges from 0 percent to maximum 20 percent.
Read more

Q: What is an interim budget under Income Tax Act, 1961 ?

Ans: The Income-tax Act, 1961 is the statute of Income Tax in India. It provides for levy, administration, collection as well as recovery of Income Tax. The Government of India brought a draft statute  called the "Direct Taxes Code" which was made to replace the Income Tax Act, 1961 and the Wealth Tax Act, 1957. However the bill was later scrapped. The Income tax act, 1961 comprises of 23 chapters and 298 sections.   The Government of India presents finance bill which is called budget every year in the month of February. The finance budget brings many amendments in Income-tax Act, 1961 that also incudes tax slabs rates. The amendments will be generally applicable to the next following financial year beginning from 1 April unless otherwise specified. Such amendments will become the part of the income tax act after the approval of the president of India.   When the central government would like to withdraw money from consolidated fund of India for the specifi...
Read more