Finance Act

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  1. Anubha Rathor

    Anubha Rathor New Member

    will you please tell me more about how previous act and new act work together.I am little bit confused.

    Explain it pls
    Only if I am not bothering you with my such a large number of silly questions.
     
  2. ZED

    ZED Well-Known Member

    Thank you.
    Have you ever seen a finance Act before?
    I can send you a copy of you want.
    You know, even till date, at times, we have to refer to the judgements which were in respect of previous Income tax Act i.e Indian Income Tax Act, 1922.
    [We have a history of 3 Income Tax Acts , for first time it was in year 1860.]

    Swachh bharat cess and Krishi Kalyan cess has been levied by Finance Acts and you must be aware of the fact that entire Service tax is levied from F.A. 1994 . Each year, Finance Act amends the Finance Act 1994 so as to bring changes in Service Tax.

    An Act can also repeal another Act.

    Take an example of Income Tax Act 1961 , the Finance Acts makes amendment in this Act.

    We have an Act titled "Direct Tax Laws (Amendment) Act, 1987"
    Amendments in Direct tax are made with the help of this Act.

    You will be able to see its reference in almost every Finance Act.
    From F.A. 16
    upload_2016-7-28_22-20-34.png
     
    Last edited: Jul 28, 2016
  3. Anubha Rathor

    Anubha Rathor New Member

    Why it is necessary to bring a new act for amending Previous acts???
    Why not an Act can always amend itself by notifications and circulars(which is use to done many times) whenever there is a need to bring change in law??
     
  4. ZED

    ZED Well-Known Member

    As I mentioned earlier that we have an Act titled "Direct Tax Laws (Amendment) Act, 1987". When notification and circulars are issued then they are issued by deriving the power in the relevant Act. But when Act itself needs to be changed then by deriving power from which authority (section) or Act or any section of the Act you will bring the change?
    Its much convenient to compile all the amendments at one place and explain all the provision of that in that place. Remember I told eariler that amendment take place when it is passed by the Parliament and the president gives his assent. If we start making amendment for each Act then think how many times Parliament will have to sit and how many times President will have to assent.
    Each year several hundreds of pages are issued for F.A and the memorandum.
    That is why Finance Act is the backbone of many Acts and that is why not Just India, but many countries in the world are waiting eagerly on the day of the bill.


    What other Acts are amended?
    MANY , for eg this F.A 2016 amended -:

    AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934
    AMENDMENT TO THE CENTRAL SALES TAX ACT, 1956
    AMENDMENT TO THE OIL INDUSTRY (DEVELOPMENT) ACT, 1974
    AMENDMENT TO THE SUMGGLERS AND FOREIGN EXCHANGE

    MAINPULATORS (FOREFEITURE OF PROPERTY) ACT, 1976

    AMENDMENT TO THE NARCOTIC DRUGS AND PSYCHOTROPIC SUBSTANCES ACT, 1985

    AMENDMENT TO THE FOREIGN EXCHANGE MANAGEMENT ACT, 1999

    AMENDMENT TO THE CENTRAL ROAD FUND ACT, 2000

    AMENDMENT TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

    AMENDMENT TO THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010
     

    Attached Files:

  5. Anubha Rathor

    Anubha Rathor New Member

    Thanx a lot for explaining in detail
     
    ZED likes this.
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