Articles Hierarchy
What is the tax rate in force when Finance Act is not passed?

If a person is required to make payment of ‘advance tax’ or ‘tax deducted at source’ (TDS) or ‘tax collection of tax’ (TCS) for any assessment year (AY) on a date when the rate or rates in force for that AY has not yet been made by the Finance Act, then at what rate or rates the ‘advance tax’ or TDS or TCS shall be paid or what shall be the rate applicable? Many a time Finance Act is not passed on a date when the liability to made TDS/TCS or even first installment of Advance tax in the case of a company is due. If on the first day of any AY provision has not been made by the Finance Act for charging of income tax for that AY the Income Tax Act, 1961, shall have effect until such provision is so made as if the provision in force in the preceding AY or the provision proposed in the Finance Bill then before Parliament, whichever is more favourable to the assessee, were actually in force. [Refer section 294]

No Comments have been Posted.
Post Comment
Please Login to Post a Comment.
Latest Comments
» Superb portrayal. So apt. Yes. Every AO should understand his role while functioning. He should use the appropriate tools at the appropriate time. ...
» Very rare information. Could not found such super note anywhere else. Thanks Dada.
» Learning History of Income-tax from a person who has carved digital future of Department at CPC and is still continuing to do so, is like blessings...
» Thanks Dada for the write up
» Thaks Daada for sharing
» Great Dada. So informative.
» Thanks dada for sharing rare information about assessment year and rate of tax.
» Thank you, Dada for the crisp and lucid article🙏
» "writ" written in a lucid form. Thanks
» Great, Dada u have special quality to see and explain about statutes. I am sure None of us knowing it with such details. Thanks.
» Very well written , keeping it simple yet highly informative. Thank You Sir...
» Dada has brought out the intricate details in such a lucid manner that interest of the reader to go further into the subject increases. Thank you Dada
» Dada ...a truly valuable article..thanks
» Dada aapko shat shat naman hai. Aapka varad hast hum par rahe aur asha hai aapke gyan bhandar sagar se hamko aise aur bhi lekh milte rahenge jisse ...
» Thanks Sir, Got new vision of rules how to interpret law.
» Great Dada. So lucid and to the point. It gives so much more clarity, especially to those who are working as assessing officers. One of the most ch...
» A great article indeed. Thanks a lot Dada.
» Dada, Minute details are also discussed in this article. Lot of thanks Dada. Mohan
» A very comprehensive information and clarification on very important issue. Thank you very much Sir
» Dada really great article