Bifalgorithm post

Why do you pay income tax to the government? Where is it written that this percent of tax will be paid on this income before this specific due date? Most of you will tell me it is the income tax act 1961, but is it? Namaskar! I am S.A. Prathamiz Joshi and I am here to throw some more light on this aspect. Let me tell you that there are six equally important components which together form the Income Tax Law of Bharat. The first component is the Income Tax Act 1961 which everyone knows about. But tell me one thing, do you ever wonder how the Income Tax Act of 1961 is relevant in 2025? The answer lies in the Finance Act. Every year, the Finance Minister of Bharat proposes a Finance Bill in both the houses of the parliament. Once this bill gets the assent of the President, it becomes the Finance Act. And it is the purpose of this Finance Act to keep the Income Tax Act up to date. The third component are the income tax rules 1962. Everyone must be aware that a salaried person gets an exemption of HRA. But did you know that it is the rule 2A of the income tax rules 1962 that gives the calculation to derive to this amount. The fourth component is circulars. Circulars are issued by the CBDT. Circulars actually provide or deal with specific provisions of the Income Tax Act. For example, the CBDT has given an extension for income tax return filing due date for certain assays. The fifth component are notifications. Now, notifications can be issued by the CBDT as well as the central government. The purpose of notifications is very similar to that of circular. For example, Section 10 of the Act provides exemption on investment income of specified pension funds. Now, how will people come to know that which specified pension funds will get this exemption? Have a look at this notification where INVRA has been specified as a special pension fund. Even after providing for all these provisions, there can still be room for doubts to address these issues comes in our final component that is case laws. In Bharat any supreme court verdict becomes the law of the land and any high court verdict becomes the law of that respective state. Have a look at this verdict. Here the illegal business revenue was sought to be taxed and this judgement clearly says that not the revenue but only illegal business income can be taxed and that too after providing for the legitimate business expenses. I am sure now you are clear what actually forms part of the income tax laws of health.

Why do you pay income tax to the government? Where is it written that this percent of tax will be paid on this income before this specific due date? Most of yo…