Introduction
Are you looking to understand about Understanding the Impact of Repeals and Savings Section 297 of Income Tax Act 1961?
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Hi, my name is Shruti Goyal, I have been working in the field of Income Tax since 2011. I have a vast experience of filing income tax returns, accounting, tax advisory, tax consultancy, income tax provisions and tax planning.
The Income Tax Act 1961 is a comprehensive tax legislation in India that governs the taxation of individuals and entities. It is a complex law with several provisions and sections that can be confusing for taxpayers. One of the sections that has been recently in the news is the Repeals and Savings Section 297 of the Income Tax Act 1961. In this blog, we will discuss this section in detail, its impact on taxpayers, and what you need to know about it.
Understanding the Repeals and Savings Section 297 of Income Tax Act 1961
The Repeals and Savings Section 297 of Income Tax Act 1961 is an important provision of the Income Tax Act that deals with the repeal of the old Income Tax Act 1922 and the saving of certain provisions of the old Act. The old Act was repealed and replaced by the Income Tax Act 1961 on 1st April 1962. The Repeals and Savings Section 297 of the Income Tax Act 1961 is divided into two parts:
Part A: Repeals
Part A of Section 297 deals with the repeal of the old Income Tax Act 1922. It states that the old Act and any amendments made to it are repealed with effect from 1st April 1962. This means that the old Act is no longer applicable, and all taxpayers must comply with the new Income Tax Act 1961.
Part B: Savings
Part B of Section 297 deals with the saving of certain provisions of the old Income Tax Act 1922. It states that any repeal of the old Act will not affect the validity, operation, or enforcement of any provision of the old Act that relates to:
- The levy, assessment, collection, and recovery of income tax
- The liability of the taxpayer for any tax
- The procedure for assessment, appeal, and revision
- Any other matter arising out of the old Act
This means that certain provisions of the old Act are still valid and applicable, and taxpayers must comply with them as well.
Impact of Repeals and Savings Section 297 of Income Tax Act 1961 on Taxpayers
The Repeals and Savings Section 297 of the Income Tax Act 1961 has a significant impact on taxpayers. Here are some of the ways in which it affects taxpayers:
1. Compliance with the new Act
With the repeal of the old Income Tax Act 1922, taxpayers must comply with the new Income Tax Act 1961. This means that taxpayers must understand and follow the provisions of the new Act to avoid penalties and other consequences.
2. Compliance with the old Act
Certain provisions of the old Income Tax Act 1922 are still valid and applicable, and taxpayers must comply with them as well. This can be confusing for taxpayers, as they need to be aware of both the old and the new provisions of the law.
3. Validity of past assessments and orders
The Repeals and Savings Section 297 of the Income Tax Act 1961 also affects the validity of past assessments and orders. The old Act is no longer applicable, but any assessments or orders made under the old Act are still valid and enforceable.
4. Litigation and disputes
The saving of certain provisions of the old Income Tax Act 1922 can also lead to litigation and disputes between taxpayers and the
tax authorities. Taxpayers may interpret the provisions differently from the tax authorities, leading to disputes and litigation. This can result in additional costs and time for taxpayers.
5. Impact on tax planning
The Repeals and Savings Section 297 of the Income Tax Act 1961 can also impact tax planning for taxpayers. Taxpayers need to be aware of the provisions of both the old and new Acts to effectively plan their taxes. Failure to comply with the provisions of the Acts can lead to penalties and other consequences.
FAQs on Repeals and Savings Section 297 of Income Tax Act 1961
- What is the Repeals and Savings Section 297 of Income Tax Act 1961?
The Repeals and Savings Section 297 of Income Tax Act 1961 is a provision of the Income Tax Act that deals with the repeal of the old Income Tax Act 1922 and the saving of certain provisions of the old Act.
- What is the impact of the Repeals and Savings Section 297 of Income Tax Act 1961 on taxpayers?
The Repeals and Savings Section 297 of Income Tax Act 1961 has a significant impact on taxpayers. It affects compliance with the new and old Acts, the validity of past assessments and orders, litigation and disputes, and tax planning.
- Do taxpayers need to comply with both the old and new Acts?
Yes, taxpayers need to comply with both the old and new Acts as certain provisions of the old Act are still valid and applicable.
Conclusion
The Repeals and Savings Section 297 of Income Tax Act 1961 is an important provision that taxpayers need to be aware of. It affects compliance with the new and old Acts, the validity of past assessments and orders, litigation and disputes, and tax planning. Taxpayers must understand the provisions of both Acts to avoid penalties and other consequences.
Section 297, of Income Tax Act, 1961
Section 297, of Income Tax Act, 1961 states that
(1) The Indian Income-tax Act, 1922 (11 of 1922), is hereby repealed.
(2) Notwithstanding the repeal of the Indian Income-tax Act, 1922 (11 of 1922) (hereinafter referred to as the repealed Act),—
(a) where a return of income has been filed before the commencement of this Act by any person for any assessment year, proceedings for the assessment of that person for that year may be taken and continued as if this Act had not been passed;
(b) where a return of income is filed after the commencement of this Act otherwise than in pursuance of a notice under section 34 of the repealed Act by any person for the assessment year ending on the 31st day of March, 1962, or any earlier year, the assessment of that person for that year shall be made in accordance with the procedure specified in this Act;
(c) any proceeding pending on the commencement of this Act before any income-tax authority, the Appellate Tribunal or any court, by way of appeal, reference, or revision, shall be continued and disposed of as if this Act had not been passed;
(d) where in respect of any assessment year after the year ending on the 31st day of March, 1940,—
(i) a notice under section 34 of the repealed Act had been issued before the commencement of this Act, the proceedings in pursuance of such notice may be continued and disposed of as if this Act had not been passed;
(ii) any income chargeable to tax had escaped assessment within the meaning of that expression in section 147 and no proceedings under section 34 of the repealed Act in respect of any such income are pending at the commencement of this Act, a notice under section 148 may, subject to the provisions contained in section 149 or section 150, be issued with respect to that assessment year and all the provisions of this Act shall apply accordingly;
(e) subject to the provisions of clause (g) and clause (j) of this sub-section, section 23A of the repealed Act shall continue to have effect in relation to the assessment of any company or its shareholders for the assessment year ending on the 31st day of March, 1962 or any earlier year, and the provisions of the repealed Act shall apply to all matters arising out of such assessment as fully and effectually as if this Act had not been passed;
(f) any proceeding for the imposition of a penalty in respect of any assessment completed before the first day of April, 1962, may be initiated and any such penalty may be imposed as if this Act had not been passed;
(g) any proceeding for the imposition of a penalty in respect of any assessment for the year ending on the 31st day of March, 1962, or any earlier year, which is completed on or after the 1st day of April, 1962, may be initiated and any such penalty may be imposed under this Act;
(h) any election or declaration made or option exercised by an assessee under any provision of the repealed Act and in force immediately before the commencement of this Act shall be deemed to have been an election or declaration made or option exercised under the corresponding provision of this Act;
(i) where, in respect of any assessment completed before the commencement of this Act, a refund falls due after such commencement or default is made after such commencement in the payment of any sum due under such completed assessment, the provisions of this Act relating to interest payable by the Central Government on refunds and interest payable by the assessee for default shall apply;
(j) any sum payable by way of income-tax, super-tax, interest, penalty or otherwise under the repealed Act may be recovered under this Act, but without prejudice to any action already taken for the recovery of such sum under the repealed Act;
(k) any agreement entered into, appointment made, approval given, recognition granted, direction, instruction, notification, order or rule issued under any provision of the repealed Act shall, so far as it is not inconsistent with the corresponding provision of this Act, be deemed to have been entered into, made, granted, given or issued under the corresponding provision aforesaid and shall continue in force accordingly;
(l) any notification issued under sub-section (1) of section 60 or section 60A of the repealed Act and in force immediately before the commencement of this Act shall, to the extent to which provision has not been made under this Act, continue in force:
Provided that the Central Government may rescind any such notification or amend it so as to rescind any exemption, reduction in rate or other modification made thereunder;
(m) where the period prescribed for any application, appeal, reference or revision under the repealed Act had expired on or before the commencement of this Act, nothing in this Act shall be construed as enabling any such application, appeal, reference or revision to be made under this Act by reason only of the fact that a longer period therefor is prescribed or provision is made for extension of time in suitable cases by the appropriate authority.