Structure of the Income‑Tax Act 1961 Explained

Introduction

Enactment and Commencement
Enacted by the Parliament of India on 13 September 1961, the Act came into effect on 1 April 1962.
Long Title and Scope
“An Act to consolidate and amend the law relating to income‑tax and super‑tax.” Applies throughout India and covers all incomes under five heads (salary, house property, business/profession, capital gains, other sources).
Key Objectives
1. Revenue generation for public services and infrastructure.
2. Equitable wealth distribution via progressive tax rates.
3. Economic regulation—promoting investment through exemptions/deductions.
4. Compliance and enforcement—clear procedures for assessment, appeals, penalties.

Composition of the Act

Total Sections & Chapters
298 sections organized into 23 chapters.
Schedules
23 schedules (1st to 14th, including Parts and amendments) covering special provisions for insurance business, recovery procedures, provident funds, minerals, backward regions, etc.

Chapter‑Wise Structure

Chapter No.	Title	Sections/Range
I	Preliminary	1–3
II	Basis of Charge	4–9
III	Incomes which do not form part of Total Income	10–13
IV	Computation of Total Income	14–59
V	Income of Other Persons included in Assessee’s Total Income	60–64
VI	Aggregation of Income and Set‑off/Carry Forward of Loss	65–80
VIA–VIB	Deductions to be made in computing Total Income	80A–80RRB
VII	Incomes forming part of Total Income on which no income‑tax is payable	81–86
VIII	Rebates and Reliefs	87–89
IX	Double Taxation Relief	90–91
X	Special Provisions relating to Avoidance of Tax	92–94
XA	General Anti‑Avoidance Rule	95–109
XII	Determination of Tax in Certain Special Cases	110–115
XII‑A	Special Provisions relating to Certain Incomes of Non‑Residents	115A–115C
XII‑B & C	Special Provisions relating to Certain Companies	116–119B
XIID	Special Provisions relating to Tax on Distributed Profits of Domestic Companies	115–115EE
XII‑E	Special Provisions relating to Tax on Distributed Income	115A–115UD
XIIF	Special Provisions relating to Tax on Income from Venture Capital Funds & Companies	115U–115Q
XIIG	Special Provisions relating to Income of Shipping Companies	115V–115ZF
XIIH	Income‑Tax on Fringe Benefits	115ZH–115ZL
XIII	Income‑Tax Authorities	116–138
XIV	Procedure for Assessment	139–154
XIV‑A/B	Special provisions for avoiding repetitive appeals & search‑case assessments	154A–154B
XV	Liability in Special Cases	155–181
XVI	Special Provisions applicable to Firms	182–189
XVII	Collection and Recovery of Tax	190–232
XVIII	Relief respecting Tax on Dividends in certain cases	233–235
XIX & XIX‑A/B	Refunds; Settlement of Cases; Advance Rulings	236–238A
XX & XX‑A/B/C	Appeals & Revision; Acquisition of properties; Mode of acceptance/payments	239–262
XXI	Penalties imposable	270–272
XXII	Offences and Prosecutions	276–272
XXIII	Miscellaneous	281–298

Compiled from the Act’s official text

Schedule Overview

1st Schedule: Insurance Business
2nd Schedule: Procedure for Recovery of Tax (Parts I–VI)
3rd Schedule: Procedure for Distraint by Assessing Officer or Tax Recovery Officer
4th Schedule: Recognised Provident, Superannuation & Gratuity Funds
5th Schedule: List of Articles and Things
6th Schedule: Omitted (Finance Act 1972)
7th Schedule: Minerals & Associated Minerals
8th Schedule: Industrially Backward States & Union Territories
9th–14th Schedules: Various lists (e.g., processed minerals, region‑specific articles, etc.)

Table of Contents

Structure of the Income‑Tax Act 1961 Explained

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