What is difference between income tax act and income tax rules?
gaurav panwar (ca) (57 Points)
17 June 2013What is difference between income tax act and income tax rules?
Rohit
(CA-Final)
(1485 Points)
Replied 17 June 2013
In most simple words,
Name of Game eg. Chess is an ACT
How to play this game is called Rules.
Similarly Income Tax Act is a name and rules prescribes its procedures.
Act is passed by Parliament whereas Rules are made by Board (here CBDT).
Please note that Act is a wider term and any Rules can not go beyond the powers given in Act.