The present Income-tax Act was brought into force by repealing the Indian Income-tax Act, 1922. With the advent of political independence in 1947 and consequently adopting an egalitarian constitution the State felt the ever increasing need of money. It was also fact that too much amendments in the Indian Income-tax Act, 1922 made it very complex. Thus it needed replacement. The matter was referred to the Law Commission which after two years of deliberations prepared a Bill of a new Act and accordingly Income-tax Bill, 1961 was presented in the Parliament and received the assent of the President on September 13,1961 to come into force from April 1, 1962 replacing the 1922 Act. The Income-tax Act, 1961 extends to the whole of India. Article 246 of the Constitution of India prescribes subject matters on which laws may be made by the Parliament and by the legislatures of the States. As per clause (1) of Article 246 of the Constitution of India the Parliament has exclusive power to make ....