The Finance Act:- Income Tax introduction

Every year the finance minister of the Government of India introduces the finance Bill in the Parliament’s Budget session. When finance bill is passed by the both by the both the houses of the Parliaments and gets the assents of the President, it becomes the finance Act.

Legal decisions by the court:

The study of case law is a part of the study of income Tax Law. The judiciary will hear the disputes between the assesses and the department and give decisions on various issues will apply as law.

Income Tax Rules, 1962:

The CBDT is empowered to make rules for carrying out the purposes of the Act. For the proper administration of the income Tax Act, the CBDT frames rules from time to time. These rules are collectively called income – Tax Rules, 1962

Circulars and notification:

Circulars are issued by the CBDT from time to time to deal with certain specific problems and to clarify doubts regarding the scope and meaning of certain provisions of the Act. The department is bound by the circulars.Notifications are issued by the central Government to give effect to the provisions of the Act. The CBDT is also empowered to make ad amend rules for the purposes of the Act by issue of the notifications