CURRENT AFFAIRS

Detailed explanation-1: -The Taxation Laws (Amendment) Bill, 2016 was introduced in Lok Sabha on August 10, 2016. It seeks to amends the Income Tax Act, 1961 and the Customs Tariff Act, 1975.

Detailed explanation-2: -On August 13, 2021, the Taxation Laws (Amendment) Act, 2021 received presidential assent to amend the Income Tax Act, 1961 and the Finance Act of 2012. The 2021 Act nullifies the ‘retrospective taxation’ that was introduced with the Finance Act of 2012.

Detailed explanation-3: -(i) The Taxation Laws (Amendment) Act, 1991 has been referred to as the ‘Amending Act, 1991’.

Detailed explanation-4: -The threshold limit for total income eligible for rebate under Section 87A has been proposed to be increased from INR 5, 00, 000 to INR 7, 00, 000 for assessees opting for the new tax regime. Under the new tax regime, the highest surcharge rate of 37% on income above INR 5, 00, 00, 000 has been proposed to be reduced to 25%.

Detailed explanation-5: -The Income Tax Act, 1961 is an act to levy, administer, collect, and recover income tax in India. The act is effective from 1 April 1962. It consists of 298 sections and 14 schedules. The act helps determine a taxpayer’s taxable income, tax liability, appeals, penalties, and prosecution.