Income Tax Act 1961: Chapters, Objectives, Features, Provisions

The first Income Tax Act in India was introduced by Sir James Wilson in February 1860. He was the first finance minister of British India.

There are 298 sections, 23 chapters, and 14 schedules in the Income Tax Act 1961.

The main objective of the Income Tax Act 1961 is to promote full employment, price stability, economic development, control cyclical fluctuations, reduce BOP difficulties, and achieve non-revenue objectives.

Income tax can be defined as the tax collected by the Central Government each fiscal year, levied on the gross income of a taxpayer during the preceding year.

A direct tax, based on their income, is paid by individuals and entities. The tax is directly paid by the taxpayer to the government, meaning the accountability and impact of the tax depend on that individual or entity.