A capital asset can either be a property or security and as per Indian laws, it is mandatory to pay taxes on such assets. Capital gain refers to the profit that you’d make by transferring the ownership of any capital asset. Capital gains are further classified into short-term capital gains and lo.....

Owning and managing a house property can get complicated for many. House owners need to spend time calculating things like taxes to be paid on income from properties, tax benefits, and other matters like paying property tax. In this article, we’ll take a close look at the taxes on income from hou.....

The Indian finance ministry introduced the new tax regime for income taxpayers in the Finance Act, 2020. To opt for the new tax regime, you will have to give a declaration choosing your option. Form 10IE is a declaration made by income tax return filers for choosing this new tax regime. In this a.....

The Income Tax Act of 1961 is an important legislation that vests power in the Central Government to levy, administer and collect income tax in India. However, the multitude of sections and provisions makes it difficult to understand, especially to the untrained eye.

Sec 28 to S.....

Once you have filed your income tax returns, the Income Tax Department will examine your returns. For this purpose, the Department may issue you an intimation, assessment, or scrutiny notice.

Sections 142(1), 143(1), 143 (2), 148, and 156 of the IT Act vests power in the De.....

The Income Tax Act of India outlines tax deductions and payment provisions. It also has provisions for delays related to filing of returns, including your income tax returns or advance tax returns.

The provisions for penalties in delayed income tax returns or advance tax returns.....

What is Section 153A?

Section 153A of the Income Tax Act of 1961, establishes a mechanism for the assessment of income in the instance of a searched individual. According to the aforementioned section, the Assessing Officer (AO) has the authority to frame an individual's assessment for .....

What is Section 234B?

Section 234B of the Income Tax Act 1961, deals with the interest a taxpayer must pay when they delay the advance tax payment charged to them. The interest can also be applied to the taxpayer if the amount of advance tax paid is less than 90% of the tax assessed.

As a taxpayer, it is mandatory to furnish your income details to the Income Tax Department. You can do this by filing your returns for each financial year. After you duly file your returns in the prescribed format, the Income Tax Department processes them.

It verifies your .....

Section 10 of the Income Tax Act lists the exemptions available to taxpayers. The individual can claim an exemption under this section for various types of incomes that they earn in a particular financial year. Section 10 has multiple subsections that allow exemptions for various types of incomes.....

Section 54EC of the Income Tax (IT) Act, 1961, helps individuals mitigate their tax liability by claiming exemptions on tax on their long-term capital gains. This is done by investing their capital gains on particular capital gain bonds. Read on to read about the various dimensions of Section 54E.....

Do you purchase capital assets like a plot of land, a house of property, or a bar of gold in order to form a funds’ source to fulfil your finance-related goals, plan your legacy, or your estate? Sometimes, in case of an emergency or any other purposes, you may require to sell these assets. The am.....

What is Section 92E?

Under section 92E of Income Tax Act, every person engaged in an international transaction or a specific domestic transaction in the previous year must obtain a report from an accountant and submit it on or before the specified date.

A report o.....

The Income Tax Act of India, 1961, has numerous sections outlining the provisions for deduction and tax payment under various conditions. Complying with these sections is essential because non-compliance can result in penalties.

One such essential section is Section 206C of.....

What is Section 115BAC of the Income Tax Act?

Introduced in 2020, under the Finance Act of 2020, Section 115BAC of the Income Tax Act allows individuals and eligible entities to choose between the old tax rates and the new concessional tax rates without taking into consideration the leg.....

Dearness Allowance 

Dearness Allowance or DA is a part of the salary structure in the payroll system of India. It is provided by the Indian government to its pensioners and employees to offset inflation impact. Although the government has taken various measures to control inflation.....

What is Section 44AE?

Section 44AE is a provision under the Indian Income Tax Act, 1961 that prescribes the presumptive income scheme for certain small taxpayers who are engaged in the business of leasing, hiring or plying of goods carriages.

The goal is to simpli.....

Section 139 of the Income Tax Act offers provisions on the late filing of income tax returns. Additionally, it provides the way forward to an assessee who failed to file tax returns before the deadline. Section 139 is divided into multiple sub-sections that focus on the non-submission of income t.....

As a responsible citizen, submitting your income details to the Income Tax Department is essential. You can declare them by filing your returns accurately. Once your returns are filed, the Income Tax Department starts processing them.

The department verifies your returns for cor.....

For an easy and hassle-free tax payment experience, the Income Tax (IT) Department has made several provisions for advance payment of tax. The IT department has slated four instalments for every quarter of the fiscal year. In case the assessee delays advance tax payment as per the scheduled insta.....

In the budget for 2017, Section 269ST was introduced in the Income Tax Act. Under this section, no person can receive a payment above ₹2 Lakhs in a single day. The main aim of this section is to curb black money laundering transactions. 

Sec 269ST of the Income Tax Act complemen.....

What is Section 44AD?

Section 44AD of the Income Tax Act, 1961 deals with the presumptive taxation scheme for certain eligible taxpayers. The section applies to resident individuals, Hindu Undivided Families (HUFs), and partnerships having a turnover of up to ₹3 Crores in the previous f.....

Financial stability is of utmost importance to leading a comfortable life. However, at times, you may need funds to sail through a period of financial hardship. At such a time, availing of a loan may help you deal with finances relating to:

• Child’s educational fee.....

The Income Tax Act of India, 1961, has numerous sections that outline how and when one should levy or deduct tax. Adherence to these guidelines and provisions is crucial, as non-compliance can attract penalties. Among the many sections is Section 194C, which has provisions related to TDS ded.....

What is Form 26AS?

Form 26AS is an annual statement that includes information about the tax deducted and collected at source, advance tax payable, self-assessment tax payments, and details concerning the refund you have received during a financial year. It also includes.....

Insurance policies act as a pillar of support against unforeseen financial burdens. They mitigate the financial crunch amid grim circumstances. Hence, financial experts suggest that every individual must take an insurance policy for themself and their families. There are times when people buy ins.....

The Indian government has been trying to transform India into a digital economy. Digital India Campaign and Demonetisation are two of the popular initiatives that were taken to reduce the usage of physical money. Section 194N was introduced keeping this in mind and to promote digital payments.

Section 194H of the Income Tax Act

Tax Deducted at Source (TDS) is a major component of the indirect taxation system in India. Since TDS allows the government to deduct tax at the source, or at the time of payout, it has helped in checking tax evasion. 

TDS i.....

Section 194J of the Income Tax Act deals with the payments made in the form of professional or technical fees to doctors, lawyers, accountants, etc.

As per the rules and regulations of this section, an individual has to deduct the tax at the rate of 10% when payments are ma.....

You may be well aware that banks deduct a specific amount as tax from your fixed deposit interests every year. This is called the Tax Deducted at Source (TDS) on the interest you earn from your FDs. Section 194A of the Income Tax Act deals with the interest paid on secured and unsecured credit.

Section 17 of the Income Tax Act states the provisions and taxation under three categories of employee benefits provided by an employer. This section addresses taxation on salary, prerequisites and profits in lieu of a salary. 

Section 17(1) addresses salary, Section 1.....

As per Section 17(2) of the IT Act, 1961, ‘salary’ is a regular payment that is given to the employee by the employer. It is a composition of basic salary allowances. There are instances wherein the employee receives commissions in place of perquisites, salary, etc.

Let us .....

Salary is a frequently used head of income while filing returns for income tax. According to the Income Tax Act of 1961, ‘Heads of Income’ is the classification of income earned by an individual such as income from capital gains, income from house property and income from other sources.. The term.....

Certain new provisions were implemented in the Finance Bill 2021 related to TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). As per the new provisions, TDS and TCS were to be deducted and collected at higher rates for those who had not filed their IT returns.

Profits resulting from the sale or transfer of capital assets are considered as income under the capital gains heading. Section 48 of Income Tax Act, 1961 accounts for the expenses involved in the acquisition, repair and maintenance of such capital assets. 

What is Section 48 of the Inco.....

Purchasing a home is a dream for many people. With property prices increasing everywhere, people are getting home loans to fulfil their dream. Although getting a home loan is a hassle-free process these days, it comes with a hefty monthly instalment. The Indian government, in order to reduce the .....

You are liable to pay property tax when you purchase property, such as a piece of land or building. Though the burden of repaying a property loan can be tiresome, the process is fruitful as the repayment of the principal and interest offers tax-saving benefits. The article looks at the TDS applic.....

Firms and companies can minimise their tax liabilities using various Income Tax Act provisions. These applicable provisions include depreciation, exemption, deduction, and many more. As a result of these tax incentives and concessions, many firms can show their taxable income as zero. 

 <.....

What is the Cost Inflation Index?

The Cost Inflation Index (CII) is an important concept in the field of taxation in India.  As per the IT Act, CII is the measure of inflation used to adjust the cost of acquisition of an asset to calculate the capital gains tax liability. It is publishe.....

Section 115BAA, established through an ordinance in 2019, was brought into existence by the State Government. Also called the ‘Taxation Amendment Ordinance’, this provision took effect from September 20 2019. The central objective of the introduction of this section was to mitigate the tax rates .....

Section 44ADA has special provisions for calculating gains and profits of professionals who are mentioned in Section 44AA(1) on a presumptive basis .It was inserted after Section 44AD of the Income Tax Act of 1961 with effect from the F.Y 2016-2017. The total receipts from these professions shoul.....

Filing income tax returns is one of the most crucial responsibilities of every earning citizen of this country. Taxes essentially contribute directly to the growth and development of the economy and the country at large. This determines the opportunities the people receive in order to live a bett.....

A specific tax is levied upon certain payments made wherein the tax is deducted right at the beginning, before the amount is received by the payee. This amount is deducted by the payer and payment could come in various forms such as a salary, a business transaction, an exchange of goods/services .....

The MSME sector is a key driver responsible for driving the country's economic growth. Micro, Small, and Medium Enterprises (MSMEs) account for a significant portion of India's GDP and employ several thousands. 

In India, there are approximately 63 million MSMEs, .....

Introduction to Slump Sale

Business management has evolved over the last couple of years with the cut-throat competition compelling businesses to become multifaceted. Today, most organisations are not focused on a single segment but offer a range of products and services under different.....

TRACES, a TDS Reconciliation Analysis and Correction Enabling System, is an online portal provided by the Income Tax Department. It was introduced to enable both Payers and Deductors of TDS to check all taxes paid and reconcile them online for a seamless ITR filing experience. As a deductor, you .....

The sale of listed equity shares, equity-oriented mutual funds, and business trusts are subject to long-term capital gains tax under Section 112A. For gains over Rs.1 lakh, these listed assets are subject to a 10% long-term capital gains tax.

Schedule 112A, which must be filled out for ea.....

What is the New Income Tax Portal?

The new income tax portal was launched on June 7, 2021, by the Central Board of Direct Taxes (CBDT). The income tax portal has now changed from 'www.incometaxindiaefiling.gov.....

It is crucial for you to know how to file your taxes. Unfortunately, there is no specific training for this anywhere in our country. They do not teach anyone how to file taxes in school (unless you take up taxation as a course in your 11th grade), nor do they impart such basic knowledge in colleg.....

What is Form 10A?

Did you know that the income of charitable institutions and trusts is exempt from tax? However, such institutions need to have a registration under section 12A to claim an exemption.

What is Section 194Q?

Section 194Q of the Income Tax Act was recently introduced by the Central Board of Direct Taxes and became effective from July 01, 2021. It offers a framework predominantly to buyers who are purchasing goods from sellers in India exceeding ₹50 Lakhs in a preceding .....

What is Form 61A?

It is the statement of the ‘Specified Financial Transactions’ (SFT) that individuals are expected to present to the government for a particular financial year. Form 61A was formerly called Annual Information Return (AIR).

According to the IT rule.....

The Government of India launched the new version of the income tax portal to improve the user experience of the taxpayers and give them easier accessibility and control over their e-filing process.

Some of the changes that have been made are:

• Mobile-Based Pl.....

Accurately filing your income tax returns is crucial, as errors can attract heavy penalties. To ensure accuracy, you need to be aware of the different sections of the Income Tax Act. These sections are either for deductions or the taxation applicable to your annual taxable income.

Buying any goods and services has an indirect tax. TCS, GST, and TDS are some indirect taxes. Tax collection at source (TCS), is the process by which the seller of the goods collects the tax from the buyer at the time of sale itself. We will try to understand one of its sections here: Section 206.....

Section 44AB of the Income Tax account is related to the Income Tax audit of accounts of individuals whose income exceeds a crore. Thus, if your annual income exceeds one crore, you fall under the ambit of this Act. So you must get a certified chartered accountant to audit your acco.....

The Government of India launched the new version of the income tax portal on June 7, 2021. The main aim behind this endeavour was to improve the user experience of the taxpayers and give them easier accessibility and control over their e-filing process.

The original income tax e-filing portal stopped its active operations and gave way to Income Tax Portal 2.0 on June 7, 2021. Access to the income tax return portal is currently available via www.incometaxgov.in.

What is the New Income Tax Portal

CBDT, or the Central Board of Direct Taxes, had recently launched the new income tax portal. Since June 7, 2021, the previous income tax portal “incometaxindiaefiling.gov.in” has been replaced by the new portal “incometax.gov.in”.

What is the New Income Tax portal?

With the financial year in full swing, it's time to file your income tax return, but did you know just filing your ITR doesn't count? You have to verify your return via the income tax portal within 120 days to deem.....

What is Form 10E?

If you are eligible for tax relief for salary received in advance or arrears, you must fill form 10E. This relief is available under Sections 89(1) and 192(2A) of the Income Tax Act, 1961.

If read without Sections 89(1) and 192(2A), pas.....

Knowing your eligibility for an income tax refund could be beneficial for many reasons. A primary reason is that it can give you a financial boost. Secondly, it means that you have paid more taxes than required by law, and that you should revisit your tax filing approach.  

&nbs.....

Income Tax and Income Tax Return (ITR) are the two terms that are used very often when discussing personal finance. Though these two terms may sound very similar, they have two very different meanings and implications, as per the Indian tax system. 

If you are a taxpay.....

A Tax residency certificate or TRC is a certificate that is issued by the authorities of tax for the non-residents of that country declaring that the non-resident is a resident for that particular tax year for Double Taxation Avoidance Agreement (DTAA) applicability, and is eligible for tax benef.....

What is TDS on Rent & How to Calculate it?

You may have noticed an amount deducted as TDS at multiple instances like bank FDs, salary, sale of property, etc. But, what is it exactly?

TDS, i.e. the Tax Deducted at Source is a part of income tax, .....

TDS on Salary

TDS or Tax Deduction at Source is a type of income tax reduced by the payer. The person making the payment has to deduct the TDS amount and transfer it to the central government. This concept was introduced to collect tax directly from the source of income.<.....

TDS stands for Tax Deducted at Source which simply refers to the idea of deducting a chunk from payments such as salary, interest, contract payments, profession fee, etc. as taxable money before the payment is to be made to the receiving party. Hence, you see that TDS can be levied on all areas o.....

There are a variety of forms on the Income Tax Portal. While downloading these PDFs and forms from the portal, you can encounter a lot of issues. Most of the time, such PDFs and forms are password protected. One such document is Form 16. In this article, we will briefly discuss what is Form 16 an.....

A change in laws surrounding the registration, verification and approval of trusts and charities under the Income Tax Act of 1961 was introduced by the Income Tax Department through the Finance Act of 2020 and 2021. Hence, sections such as Section 12A, section 12AA and section 12AB were added to .....

What is TIN Number?

Tax Identification Number or TIN is the unique identification number that is mandatory for any business enterprise that is registered under VAT. TIN typically consists of 11 characters and is provided by the income tax department to all the business enterpr.....

Budget 2020 was announced back in February, which introduced us to the new personal income tax regime. The new personal tax regime undoubtedly has grabbed the attention of the million taxpayers in India. So, before we understand the impact of this, let us know what the new income tax regime holds.....

Amidst the chaos, the nation not just tackles the extremities of a health crisis but also battles the consistently affected economy. With a negative impact over businesses, down sliding market and a state of lockdown across the country, there have been major amendments made by the jurisdiction to.....

Example to Explain TDS

XYZ Private Limited makes a payment for the rent of office of Rs. 1,00,000 per month to the property owner. TDS is needed to be deducted at a rate of 10% (let’s say). XYZ Pvt Ltd should deduct a TDS of Rs. 10,000 and pay the remaining balance of Rs. 90,000 to the .....

Tax Deducted at Source or TDS applies to resident Indians, non-resident Indians, domestic companies, and international companies that operate in India. The TDS percentage can vary between 1% and 30%, based on your income source. In some rare cases, it may even touch 50%.

Some of.....

TDS, which stands for Tax Deducted at Source, means exactly that: it is that component of tax which is levied by the Income Tax department on your salary, depending on the income slab that you belong to. Since this component of tax is collected/levied at the source, it can often be more than the .....

Tax on Gifts in India: Exclusions, provisions and how to save

Gifts are an integral part of our social culture and are often given as a token of love, gratitude, and appreciation. However, gift tax in India is applicable on certain gifts, while some gifts are free from taxation. The Inc.....

When you invest in different instruments or park your savings in a bank account, you generally earn interest. This is termed as interest income and is subject to taxation as per the Income Tax Act. 

Tax on interest income depends on how you earned the interest, i.e., t.....

Anyone who earns an income in the country is liable to pay income tax. The Income Tax Act comprises of various sections, which separately deal with various aspects of taxation in the country. Furthermore, this Act also provides the taxpayers with various income tax deductions they can claim while.....

Critical illness usually covers severe and long-term health conditions that include heart attack, cancer, Parkinson’s disease or even loss of limbs. Reports reveal that around 60% of Indians suffer from heart problems. Even cancer affects one out of ten people in India.

The.....

The primary goal while making an investment is to grow the corpus and aim to accomplish long-term as well as short-term goals through it. Another goal on the minds of investors while making an investment is to ensure the highest amount of tax savings possible. As a result, while deciding on the p.....

Introduction

In India, capital gains refer to the profits earned from the sale of assets. It was introduced in India in 1956, and it has undergone several revisions over the years. The tax is levied on both, short-term and long-term capital gains, with several rates and exemptions. This.....

Introduction

Now, your duty as a taxpayer doesn’t just end with paying your taxes on time. In fact, there are other requirements that you would have to comply with as well. One such requirement is the filing of Income Tax Returns (ITRs).

Failing to comply with inc.....

For youngsters attempting tax planning for the first time, understanding income tax basics can be quite confusing. Most people hire a tax advisor or a CA to for tax planning and to invest in tax saving instruments, especially at the last minute. However, that’s not the only way out. In this age w.....

India has the largest section of the youth population in the world. By the year 2020, India will have a median age of 28, compared to 37 of the US and China, 45 of Western Europe, 49 of Japan. Such a dynamic shift in the nature of the workforce would inevitably stir the market, as it had with Chi.....

When it comes to broadband services, Indians prefer mobile broadband over fixed-line services. The total subscriber base for fixed-line broadband services in the country is only 18.42 million, according to the Telecom Regulatory Authority of India. To put things into perspective, 532 million peop.....

On October 2, 2016, India became the 62nd country to ratify the Paris Agreement. The agreement requires every ratifying member country to come up with a national plan to curb carbon emissions and rising temperatures. India has set a goal of generating 40% of its electricity from renewable energy .....

Education is one of the most critical aspects of the development of an individual. It enhances one’s skills, knowledge, intelligence, and opens up many doors to gathering knowledge, analysing and rationalising. Having an education makes it easier to have an informed opinion, which in the larger p.....

Similar to the previous year, the government has extended the ITR filing deadline for 2019 as well. With a grace period of 1 month, taxpayers have until August 31 to file their tax returns instead of July 31. The obvious purpose of this extension is to allow more people to file their income tax r.....

Income tax filing is one of the most crucial financial tasks. Since it is an exercise undertaken each year, it is helpful to have a working knowledge of the forms and terms. One such key forms is the Form 16A.  Form 16/ 16A is the certificate of deduction of income tax at source and issued o.....

With the ITR filing process going entirely online, it is often preferred that we undertake the task ourselves. While delegating or outsourcing the task of computing our income tax to an accountant may seem tempting, even in doing so, we need to make sure we are accounting for all the sources of i.....

India was the sixth-largest economy in 2017, pushing France to the seventh spot. It was in striking distance of fifth-placed UK. In 2018, however, France and UK surged ahead, largely due to currency fluctuation, but also due to softening growth in India. The Indian economy has been battling a mar.....

Money has become the accepted medium for the exchange of goods and services. We spend our hard-earned money to purchase products or experiences that we require or desire. One can always monitor the result of the money we spend. But a substantial portion of our earnings is taken away as taxes. Bei.....

The government needs resources to pay its employees, fund welfare schemes and develop infrastructure. How does the government raise resources? There are several sources, but the primary source is direct and indirect taxes. Taxes that are levied directly on individuals or entities such as income t.....

Filing Income Tax returns can be a tricky affair. One mistake in the declaration of income or deduction and you could end up with a notice from the income tax department. With the deadline extended to August 31st, you now have the time to go through the process patiently and with utmost care. Mak.....

Filing income tax returns can be an intimidating and exhausting process. There are a plethora of sources and deductions to report, and it is easy to get lost under reams of paperwork. In the midst of the chase to the deadline for ITR filing, sometimes you might omit the declaration of certain inc.....

Introduction

Indian labour laws are a set of legal provisions which regulate the relationship between the employers and the employees in India. These laws aim to protect the rights of the workers, ensure fair wages, provide social security, prevent exploitation, and maintain equality at.....

India started 2018-19 on a strong footing, clocking a growth rate of 8.2% in the first quarter. However, the economy gradually decelerated to 5.8% in the last quarter, ending FY19 with an overall growth rate of 6.2% as against 7.2% in the previous fiscal year. The econom.....

What happens when one of the wheels of a vehicle comes off? It could lead to a catastrophic accident. If India is the vehicle, the automobile sector is one of the wheels. The Rs 4.8-lakh-crore auto industry employs 37 million people and single-handedly contributes 7.5 percent to the country’s GDP.....

Wealth refers to the basket of assets such as cash, land, property, gold, shares, and bonds. In any economy, wealth is created over time by investing in these assets with an expectation that the price will rise further in the future. This rise in price over a period of time leads to wealth creati.....

As the end of the financial year draws near, taxpayers start preparing and worrying about income tax return filing for the particular assessment year. Though there is a large window of opportunity to file the returns, taxpayers wait until the last minute to make investment decisions and take tax .....

With the deadline for ITR filing in 2019 extended by a month to August 31, you should have enough time to prepare all the income tax return documents for filing your returns. To avoid last minute glitches and delays, it’s advisable to prepare well before the extended deadline.

Every year when the budget is presented, people wait for new announcements on income tax. A lower tax outgo doesn’t harm anyone. Either the government is expected to increase the income slab rate that is exempted from paying taxes or offer more tax deductions. The government allows several types .....

India’s startup ecosystem has become a force to be reckoned with. The domestic technology landscape has gone a drastic change in the past few years with the country emerging to be the third fastest growing startup hub globally with over 4,200 startups creating more than 80,000 job opportunities.<.....

Mandated by the Income Tax Department of India, filing an income tax return is a process of reporting your gross taxable income from all sources, while also mentioning various tax deductions and thereby declaring your net tax liability. As a taxpayer, you can file your income tax return online (e.....

Taxpayers are often advised to start early with their tax planning. The key to tax saving is understanding the right investment strategies for an individual, and where one can claim deductions. Furthermore, it is also imperative for taxpayers to have a long-term, planned approach towards taxes, a.....

As you age, your income tax planning strategies may need to be adjusted to reflect changes in your financial situation and tax laws. Income tax planning refers to the process of organising your finances and making strategic decisions to minimise the amount of income tax you owe. Here are some tax.....

Life is inherently unpredictable. The best we can do is battle the ups and downs bravely as they arise. Planning wisely to save your hard-earned money is one such way to prepare for unforeseen circumstances.

Heads of Income

Income tax is the most direct form of tax applicable on Indian citizens. Salaried individuals pay it in accordance with the income they earn and the tax slab they fall under. However, apart from salary, many people also earn income from a variety of other sources. To fac.....

Income tax is one of the government's most significant revenue sources. This naturally means that taxpayers must be aware of each step that goes into paying their taxes on time. While most taxpayers in India are aware of the significance of Income Tax in their financial lives, they might find it .....

For individuals who are unsure of what TDS is and are asking themselves, "What is TDS?," it is the income tax that is subtracted from an amount during a certain payment. The Income Tax Act of India, 1961, states that if an individual or organization's income exceeds the predetermined th.....

Unit Linked Insurance Plans merge the protective cover of an insurance plan with the wealth-appreciation possibilities of investments.

The income that you earn will undoubtedly increase as the years go by. As you move from one promotion to the next, your inflow of income will also rise. Correspondingly, so will the tax rate applicable to you as per the Income Tax Act, 1961. This effectively means a higher tax liability.

.....