Amended and updated notes on section 294 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Act to have effect pending legislative provision for charge of tax.
Chapter XXIII (Sections 281 to 298) of the Income Tax Act 1961 deals with the provisions related to Miscellaneous. Section 294 of IT Act 1961 provides for Act to have effect pending legislative provision for charge of tax.
Recently, we have discussed in detail section 293D (Faceless approval or registration) of IT Act 1961. Today, we learn the provisions of section 294 of Income-tax Act 1961. The amended provision of section 294 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 294 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-294: Act to have effect pending legislative provision for charge of tax
If on the 1st day of April in any assessment year provision has not yet been made by a Central Act for the charging of income-tax for that assessment year, this Act shall nevertheless have effect until such provision is so made as if the provision in force in the preceding assessment year or the provision proposed in the Bill then before Parliament, whichever is more favourable to the assessee, were actually in force.