OVERVIEW OF INCOME TAX LAW IN INDIA

Written by: ANKUR Posted on: 28 July, 2022

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.
Disclaimer: Although all provisions, notifications and updates, are analyzed in-depth by our team before writing to the public. Any change in detail or information other than fact must be considered a human error. The Guide, Articles, Blogs, FAQ and videos is to provide updated information. Tax matters are always subject to frequent changes hence advisory is only for the benefit of the general public. Hence neither TaxSmooth nor any of its Team members is liable for any consequence that arises on the basis of these write-ups.
INDEX