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 specified expenditure to be incured for particular period, the central government will have to take the approval from the parliament when the budget was not passed by passing vote-on-account.
The finance minister presents the interim budget during a joint sitting of Rajya Sabha and Lok Sabha in the parliament. Until the government passes the interim budget, the government passes a vote on account to allow them to meet its expenses. 
A vote-on-account contains only the expenditure of the government whereas the interim budget deals with both receipts and expenditure.


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