The Income-tax Act, 1961 is the charging Statute of Income Tax in India

Income tax in India

The government of India imposes an income tax on taxable income of individuals, Hindu Undivided Families , companies, firms, co-operative societies and trusts and any other artificial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961...

. It provides for levy, administration, collection and recovery of Income Tax. The Income Tax Act is the most complex statute in India. It is also subject to many criticism. This is because the Act has lost it original structure due to the infinite amendments made to it every year. But this is soon to change. Recently the Government of India

Government of India

The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...

 has brought out a draft statute called the "Direct Taxes Code" intended to replace the Income Tax Act,1961 and the Wealth Tax

Wealth tax

A wealth tax is generally conceived of as a levy based on the aggregate value of all household holdings actually accumulated as purchasing power stock , including owner-occupied housing; cash, bank deposits, money funds, and savings in insurance and pension plans; investment in real estate and...

Act, 1956. Public Commentary has been called for the Draft Bill. The redrafted bill is supposed to be made public soon.