Information About Major 9 Provisions of the Income Tax Act

Major 9 Provisions of Income Tax Act

AllAbout9IncomeTaxActProvisions

The law of income tax is enriching.As intriguing as it is, the more one learns, the more he seeks to learn. In the former articles, we discussed the income tax law and now wrote an article concerning the ancillary provisions as included in the Income TaxAct, 1961 itself.The same act consists of different provisions and most of the tax community is very well known about the actual part of the same provision. But the law is so expanded and developed that there are various ancillary or incidental provisions that many of us for the urge of development of knowledge of tax laws might require to reveal.

LatestUpdatein ITAct 4th August 2022

As per the Mumbai bench of the Income Tax Appellate Tribunal (ITAT), land enhancements are capital expenditures and are eligible for deductions as per income tax section 48 of the IT Act, 1961.

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AppealAsPerSection260AtotheHC& Section261toSC

Under section 260A(1) of the act, an appeal lies to the High court with respect to the order passed in appeal by the appellate tribunal and only on the substantial question of law.

The provisions of the Code of Civil Procedure, 1908 connecting to appeals to the High Court shall, that might be, apply when appeals to the High Court(Section 260A(7)).

The petition must come beneath the Supreme court beneath section 261 from any judgment delivered by the High Court in an appeal against any order passed under Section 254.

InstructionstoSubordinateAuthorities

CBDT furnishes the Circulars

A

beneath Section 119(1) of the Act which is in the kind of rules to subordinate authorities.

BUnder Section 119(2)(a), the CBDT can calm the effect of various provisions including Section 139, 143, 144, 147, etc.

CUnder Section 119(2)(b) the CBDT might prevent the real hardships via general or special order authorize any income-tax authority to admit an application or avail any exemption, deduction, refund, or any additional relief beneath the Act .

AnnualInformation&Financial TransactionStatement

⇨ Aia Finance Act, 2020 w.e.f 1-6-2020, the marginal note Annual information statement was inserted, and beneath Section 285BB of the Act.

⇨ Under Section 285BA of the Act, an inter alia assessee is needed to file a statement of financial transaction to the income tax authority. The rule related to it and its form is Rule 114E and Form 61A.

AppealFilingorApplicationforReference bytheITOfficer

The circulars provided by the CBDTfor the tax effect are furnished beneath section 268Aof the act. Hence these fiscal limits are mentioned for showing the plea via revenue to ITAT, High Court, and Supreme Court, and what is ‘tax effect’is mentioned in the circulars and the power source to provide these circulars in the mentioned section.

AssessingTaxAuthorities

Every tax professional and even laymen have learned about the term ‘Assessing Officer’. It is described beneath Section 2(7A). The report was inserted by the Direct Tax Laws(Amendment) Act, 1987 w.e.f 1-4-1988. But did you know that the Commissioner of Income Tax is not one of the income tax authorities beneath Section 116 who is an assessing officer beneath the act.

IncomeTaxability

The taxability of the income of the individual relied on the residence of the specified person as per DTAAs. An individual might be a resident in India, not ordinarily resident, or a non-resident and will need to furnish the tax as per that. Section 6 deals with the residents in India. The income tax liability in India shall not come as per the citizenship of the mentioned individual. The individual might be an individual, HUF, company, firm, etc, and is described beneath Section 2(31) of the Act.

UndertakingTransactions Mode

Under section 269ST of the IT act, no

one will obtain the amount of Rs 2 lac or exceeding.

In aggregate from a person in a day

a single transaction

For the transactions connecting to one event or occasion from an individual.

AppearancebyanAuthorized Representative

An authorized representative (AR) would not only consist of a name furnished for the counsels and other individuals appearing to ITAT or Commissioner (Appeals). Section 288 of the Act made the term which clarifies that the individual might attend the proceedings prior to these meetings via an approved representative. Under sub-section 2 it is described as who could be the authorized representative and consists of any individual related to the taxpayer, a lawyer, an accountant, or even an individual timely employed by the taxpayer.

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