Income Tax Act and Income Tax Rules

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Santosh (Querist)
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27 April 2011 What is the difference between Income Tax Act and Income Tax Rules? Please give a complete list of difference.
Is Income Tax Act is based on Income Tax Rules or Income Tax Rules is based on Income Tax Act?

CA. Naveen Bhat

CA. Naveen Bhat (Expert)
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27 April 2011 Any Act defines what is the applicability and rules the defines how it is applicable. So for example IT act says you need to file IT return and IT rules defines how to file the returns. IT rules will have the applicable forms and instructions.
So IT rules will contains the guiding principle for IT Act