Income tax Act of 1961 is responsible for imposing tax on income of the individuals and organisations. It imposes taxes on- House and property tax. Business income tax. Income from the salaries of people. Capital profit incomes. But income tax Act of 1961 is replaced by Direct Taxes Code Act of 2010 and the implementation started from 2013. This act is an upgrade on income tax act of 1961 and covers the budget as well while imposing taxes.