12 June 2015
I want to know how to interpret an act and the rules. For instance, there are various Companies (Amendment) Rules which get amended on yearly basis like Rules 2014, then 2015. So which is to be referred? There are so many Rules. So I want to know how does all this work?
Act: Act is passed by the parliament of India or the respective legislative assemblies of the states. It has the highest authority. For example, the income tax act, 1961 is an act passed by the parliament.
Rules: Rules are framed by either the central government or the state governments. The government derives power to frame these rules from the respective act. For example, central government frames income tax rules because it gets power to do so from the income tax act.
Regulations: Regulations are passed by the respective authorities. For example, the authority for direct taxes is CBDT (Central Board for Direct Taxes) which frames direct taxes regulations.
To interpret act and rules, just keep in mind that the act has more authority than the rules. Hence act supersedes rules.
Even though rules are amended every year, please note that the rules which are in force at the time the event has taken place will be applicable to that event.
In case, the new rules framed later are passed in to effect with retrospective effect, then the new rules are applicable for events which have occurred earlier.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
12 June 2015
Thanks a lot C.A. Atul. Glad you replied.
CAclubindia
