 The Direct Taxes Administration Enquiry Committee, under the Chairmanship of Mahavir Tyagi, submitted its report on 30 November 1959 and the recommendations made therein took shape of the Income Tax Act, 1961.The 1961 Act came in to force with effect from 1 April 1962, by replacing the Indian Income Tax Act, 1922 which had remained in operation for 40 years.The present law of income tax is governed by the Income Tax Act, 1961, which has 298 sections and 4 schedules and is applicable to whole of India including the state of Jammu and Kashmir.