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Income Tax Act

The Income Tax Act is a legal framework governing how income taxes are collected from individuals and businesses in a country. It outlines what types of income are taxable, the rates at which taxes are imposed, allowable deductions, and the obligations of taxpayers. The Act aims to ensure fair tax collection and compliance, providing guidelines for both taxpayers and tax authorities. By understanding this legislation, individuals can better manage their finances and obligations, while governments can fund public services and infrastructure through the revenue generated.

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    The Income Tax Act of 1913 was a significant piece of legislation in India that established a framework for taxing individuals and businesses on their income. It marked the introduction of income tax in British India, aimed at generating revenue for the government. The Act defined different income categories, tax rates, and compliance requirements, laying the groundwork for the modern income tax system. Subsequent amendments and new laws have evolved from this Act, forming the basis of today's tax structure in India.