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Where in the Finance Act rate of IT mentioned?

The rate (or rates) of Income tax is/are conventionally mentioned in the First Schedule to all the Finance Acts. For the purpose of identifing any rate relevant to any Assessment Year (AY) one has to look into the relevant Part of the First Schedule to the Finance Act.

The First Schedule of the Finance Act has four Parts and each Part deal with a particular types of rate relevant to an AY. For easier understanding, let’s take the example of the Finance Act of 2014.
• Part I refers to the rates relevant to AY 2014-15.
• Part II deals with rates of TDS if it is to be made at the rates in force; else the TDS is required to be made at the rates as specified at the relevant TDS sections, viz section 194C, section 194E, section 194H etc. These rates are relevant to Financial Year 2014-15 and accordingly will be relevant to AY 2015-16
• Part III refers to the rates relevant to AY 2015-16 (i.e., the AY following the current AY)
• Part IV deals with rules for computation of the net agricultural income.

One interesting point is that Part III of one Finance Act becomes Part I of the immediately next Finance Act. For exemple rate/rates of Part III of Finance Act, 2014 shall become Part I of the Finance Act, 2015 and so on and this convention continues.

Sheiba john on April 30 2019 14:34:42

Thank you, Dada for the crisp and lucid article🙏

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