OVERVIEW OF INCOME TAX LAW IN INDIA

The Constitution of India, in Article 265 lays down that “No tax shall be levied or collected except by authority of law.” Accordingly for levy of any tax, a law needs to be framed by the government.

Constitution of India gives the power to levy and collect taxes, whether direct or indirect, to the Central and State Government. The Parliament and State Legislatures are empowered to make laws on the matters enumerated in the Seventh Schedule by virtue of Article 246 of the Constitution of India.

Seventh Schedule to Article 246 contains three lists which enumerate the matters under which the Parliament and the State Legislatures have the authority to make laws for the purpose of levy of taxes.

The following are the lists:

Union List: Parliament has the exclusive power to make laws on the matters contained in Union list.
State List: The Legislatures of any State has the exclusive power to make laws on the matters contained in the State list.
Concurrent List: Both Parliament and State Legislatures have the power to make laws on the matters contained in the Concurrent list.

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ANKUR

Direct Tax Expert having more than 10 years of Experience