The Income Tax Act and Rules govern the levy, administration, collection, and recovery of income tax in India.
Charging Provision
Where a Central Act enacts that income tax shall be charged for any assessment year at a specified rate or rates, income tax at that rate is charged for that year in accordance with, and subject to, the provisions of the Act — including provisions for levying additional income tax — in respect of the total income of the previous year of every person.
Proviso: Where any provision of the Act requires income tax to be charged on the income of a period other than the previous year, income tax is charged accordingly.
Deduction and Advance Payment
For income chargeable as above, income tax is deducted at source or paid in advance, wherever such deduction or payment is required under any provision of the Act.