The Income-tax Act, 1961 is the charging Statute of Income Tax in India. It provides for levy, administration, collection and recovery of Income Tax. The Government of India brought a draft statute called the "Direct Taxes Code" intended to replace the Income Tax Act,1961 and the Wealth Tax Act, 1957. However the bill was later scrapped.
Amendments
The Government of India presents finance budget every year in the month of February. The finance budget brings various amendments in income tax act,1961 including tax slabs rates. The amendments are generally applicable to the next following financial year beginning from 1 April unless otherwise specified. Such amendments become part of the income tax act after the approval of the president of India.
"The Taxation Laws (Second Amendment) Act, 2016" is an amendment Act, No.48 of 2016, to Income-tax Act, 1961 and The Finance Act, 2016. It was passed during the 2016 Winter Session of Indian Parliament.
The Taxation Laws (Second Amendment) Bill, 2016 was passed in Lok Sabha as a money bill on 29 November 2016 enabling people to declare their undisclosed incomes after Indian 500 and 1000 rupee note demonetisation.
The Taxation Laws (Second Amendment) Bill, 2016, was introduced in the Lok Sabha during the 2016 Winter Session of Indian Parliament.[6] The bill was introduced on 28 November 2016, by Finance Minister of India, Arun Jaitley. The bill was passed by Speaker Sumitra Mahajan, with a voice vote without debate in Lok Sabha.
The Government, clarified that gold asset in form of jewellery of People of India, were not for taxation as per the introduced Bill.
The Opposition, parties, expressed anger against the passed bill in Lok Sabha, that a debate was not held.