Income-Tax Act is governed by Income-tax Act, 1961 along with rules framed thereunder this Act. Rates of taxes are changed each year by Annual Finance Act. This Annual Finance Act is passed by the Indian Parliament each year. The First Schedule of this Annual Finance Act contains 4 parts –[/vc_cta][vc_tta_accordion][vc_tta_section title=”Part I” tab_id=”1546528695256-2f770dbd-0a73″]
It provides the applicable rates for current Assessment Year. This provides the basic rates of income-tax for different types of assesses.
It provides the rate at which TDS is deductible at source for Current Financial Year. There are several heads under which TDS is deducted for different types of payments received. These rates are changed by this Finance Act.
It provides for the rates for calculating income-tax for income chargeable under the head “Salaries” and computation of advance-tax.
It gives rules for computing net agricultural income. The purpose of these rules are to give benefit to genuine agricultural income and tax the taxable income at the maximum rate applicable.