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In India, taxes are levy by Central Government and State Government. But in some places taxes are also imposed by local authorities. Constitution of India allocates the power to Government for levy different types of taxes. Indian Constitution Article 246 distributes legislative powers including taxation between Central and State Government. A question also arise that who can impose taxes and on which products or services. And to avoid all such issues related to levy of taxes there are 3 lists in Schedule VII with specified the area of taxation for each. 1. List 1 entitling the area on which only central government can make law. 2. List 2 in which only state government have power to make law. 3. List 3 on which both can make law concurrently. As per the list 1 only central government have the power to make law on income tax (excluding agriculture income). Tax on agriculture income is imposed by state government as per list 2. The major source of tax collection for government is income tax governed by Income Tax Act 1961. It is imposed on individuals, AOA, HUF, Companies etc. Central Board of Direct Taxes (CBDT) is a part of Revenue Department and it comes under the Ministry of Finance for the purpose of tax collection. For Income Tax, CBDT also issues notifications and circular on regular basis. In every union budget, a new Finance Act come which overrides the provisions of previous year Finance Acts Provisions and amendments. Finance Act covers new Amendments, new rates and to secure the revenue interest. It basically done to unplug the loop holes in the Income Tax Act and Income Tax Rules and to remove complexities and ambiguities in the Act. These Amendments and changes in the Income Tax Act helps the department to increase their tax collections. Currently it is also purposed to replace the Income Tax Act, 1961 with New Income Tax Act and for which a Direct Tax Code has already been made. It is very difficult to understand all this laws by an ordinary person. And there are so many requirements in each law and it’s not easy to fulfill these requirements without the help of an expert. People usually need Income Tax Consultant who can provide Income Tax Services to them. Because only an expert can provide solutions of their problems, for this they take help of Chartered Accountants. In India, it is said that if it comes for taxation then the Chartered Accountants are the experts. Chartered Accountants are qualified from ICAI, set up by an act of parliament. So, If you want any help or have any doubts about the income tax than you can consult with a Chartered Accountant. Chartered Accountants are called the masters in taxation field. They will help you in proper record maintaining, return filling, tax payment, business advisory, tax planning, and other consultancy services. I try to provide information regarding Income Tax Consultant and Income Tax Services. Hope you like article post and enjoy reading it, and it's helpful for you. If you want more information regarding above article just visit http://www.accountingforte.com/
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