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Companies Act vs Income Tax Act

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Bhavesh

Accounts

177 Points Posted on 28 April 2023

Hello, Freinds want to know what is the difference between Companies Act and Income Tax Act. also provide me any title for reading the same.

Replies (2)

Quick Summary

The Companies Act primarily governs the formation, operation, and winding up of companies, with specific exceptions for banking, insurance, and electricity companies. In contrast, the Income Tax Act applies to a broader range of entities, including individuals, firms, companies, and artificial judicial persons, focusing on the assessment and collection of direct taxes. While the Companies Act aims to regulate corporate governance, the Income Tax Act's objective is to manage direct taxation for all applicable entities.

prasad Nilugal

GST Practitioner & Accounts

15150 Points Posted on 28 April 2023

1) Companies Act is applicable to all Companies, and govern under same Act, except
Banking Companies
Insurance Companies,
Electricity Companies.
These three companies are having there own Act .

All the Companies are required to Comply with Companies Act , except three above.

2) Income Tax Act is applicable to all persons, and person as per the income tax Act are .

1) Individual
2) Firm
3) Company
4) Local Authority
5);Aop/ BOI
6) Artificial Judicial person
etc.

All above persons paying Income tax required to Comply with Income tax Act .