Entry 82 of the Union List of Schedule VII of the Indian Constitution grants the Central Government of India the authority to impose taxes on all types of income other than agricultural income.

The major source of government revenue is the Income Tax Department. Income tax is the primary source of funding for the government’s operations and to provide services to the public.

Income tax authorities are required to prevent assessment of assesses, tax evasion, etc. In order to implement the Income Tax Act effectively and manage the Income Tax Department, the Government of India has established several authorities.

In this article, you will read about the role, powers, and functions of some income tax authorities.

Classes of Income Tax Authorities

Section 116 of the Income Tax Act provides the following classes of income tax authorities:

1. The Central Board of Direct Taxes
2. Directors General of Income Tax or Chief Commissioners of Income Tax
3. Directors of Income Tax or Commissioners of Income Tax or Commissioners of Income Tax (Appeals)
4. Additional Directors of Income Tax or Additional Commissioners of Income Tax or Additional Commissioners of Income Tax (Appeals)
5. Joint Directors of Income Tax or Joint Commissioners of Income Tax
6. Deputy Directors of Income Tax or Deputy Commissioners of Income Tax or Deputy Commissioners of Income Tax (Appeals)
7. Assistant Directors of Income Tax or Assistant Commissioners of Income Tax
8. Income Tax Officers
9. Tax Recovery Officers
10. Inspectors of Income Tax

Who Appoints Income Tax Authorities?

According to section 117 of the Income Tax Act, the central government has the power to appoint such persons as it deems fit to the income tax authorities. The central government has the power to choose officials up to and above the rank of Assistant Commissioner of the Income Tax.

The central government can further authorise the appointment of income tax officials below the rank of a Deputy Commissioner or Assistant Commissioner by the Board, a Director-General, a Chief Commissioner, a Commissioner, or a Director. However, the appointment by such authorities is made according to the rules and regulations of the central government regulating the conditions of service of persons in public services and posts.

Central Board of Direct Taxes

The Central Board of Direct Taxes (CBDT) is a statutory body constituted under the Central Board of Revenue Act of 1963. It functions under the jurisdiction of the Ministry of Finance, Government of India. The Board initially handled both direct and indirect taxes. However, when the administration of taxes became too burdensome for one to handle, the Board was divided into two: the Central Board of Direct Taxes and the Central Board of Excise and Customs.

It has the power to control and supervise all the officers of the income tax department. Along with this, the Central Board of Direct Taxes has the power to make such rules as are necessary for the administration and implementation of the provisions of the Income Tax Act. The rules made by the Board are controlled and approved by the central government.

Composition of the Central Board of Direct Taxes

The Central Board of Direct Taxes comprises a chairman and six other members. The chairman is the head of the Board. The other six members must be ex officio special secretary to the government of India.

The six members of the Central Board of Direct Taxes deal with:

1. Income Tax & Revenue
2. Administration
3. Legislation
4. Audit and Judicial
5. Investigation
6. TPS & System

Powers of the Central Board of Direct Taxes

The Central Board of Direct Taxes has been empowered with the following powers by the Income Tax Act of 1961:

1. Power to appoint income tax authorities: Section 117 of the Income Tax Act gives the Board the power to appoint income tax authority below the rank of Deputy Commissioner or Assistant Commissioner if authorised by the central government.

2. Power to control and supervise: Section 118 of the Income Tax Act empowers the Board to control all the Income Tax Authorities, subject to an overall framework of the Central Government.

3. Power to issue instructions and circulars: Section 119 of the Income Tax Act empowers the Board to issue instructions and circulars to its subordinate officials for the proper administration and implementation of the Income Tax Act. The Board has the power to give the following instructions:

1. Relaxation of certain provisions [sec 119(2)(a) of the Income Tax Act]
2. Extension of time limit [sec 119(2)(b) of the Income Tax Act]
3. Relaxation for claiming deduction [sec 119(2)(c) of the Income Tax Act]

4. Power to decide the powers and functions: Section 120 empowers the Board to decide on and issue the powers and functions of the other income tax authorities.

5. Power to issue general or special orders: The Board can issue general or special orders to relax the provisions of sections 115P, 115S, 139, 143, 144, 147, 148, 154, 155, 234A, 234B, 271 and 273 in order to properly and effectively manage the work of assessment and collection of revenue.

6. Power to transfer cases: Section 127 of the Income Tax Act empowers the transfer of a case from one Assessing Officer to another Assessing Officer subordinate to him after giving the concerned assessee a reasonable opportunity to be heard.

Income Tax Settlement Commission

The Income Tax Settlement Commission is a quasi-judicial body that was constituted in accordance with section 245B of the Income Tax Act.

According to section 245B(1) of the Income Tax Act, the Income Tax Settlement Commission is set up for the settlement of cases related to income tax. It is constituted under the supervision of the Central Government.

Composition of Income Tax Settlement Commission

The Settlement Commission consists of a Chairman, Vice-Chairman and other members. The number of Vice-Chairmen and other members is decided by the central government. The commission comprises individuals with integrity and who have special knowledge of and experience with issues involving direct taxes and business accounts.

Powers

The powers of the Income Tax Settlement Commission are:

1. The Income Tax Settlement Commission has been vested with powers similar to those of the Income Tax Authority in all the proceedings pending before it.
2. The Income Tax Settlement Commission has the power to grant immunity from penalty and prosecution to the person who has made the application.
3. Section 245E of the Income Tax Act empowers the Settlement Commission to reopen any completed proceeding that is connected to the case in the proceeding.

Powers of Other Income Tax Authorities

The income tax authorities have the following powers to prevent tax evasion or to implement the provisions of the Income Tax Act, 1961:

1. Discovery, Production of Evidence, etc. (Section 131): Section 131 of the Income Tax Act provides the income tax authorities with the same power as vested in the Civil Court under the Civil Procedure Code.

2. Search and Seizure (Section 132): Section 132 of the Income Tax Act grants the income tax authorities wide powers of search and seizure.

3. Power to Requisition Books of Account, etc. (Section 132A): The income tax authorities can direct any officer or authority to deliver books of account, other documents or assets to the requisitioning officer in the following cases:

1. If a summon or notice has been issued to any person to produce, or cause to be produced, any books of account or other documents, but he has either omitted or failed to do so.
2. If any books of account or other documents will be useful for any proceeding under the Income Tax Act
3. If any assets represent wholly or partly the income or property and such income or property has not been or would not have been disclosed by the person from whose possession or control such assets have been taken into custody by any officer or authority.

4. Power to call for information (Sections 133): The Deputy Commissioner (Appeals), Commissioner (Appeals) or Deputy Commissioner have the power to call for the following information from the concerned person:

1. Direct any firm to provide a return of the addresses and names of partners of the firm and their shares.
2. Direct any Hindu Undivided Family to provide a return of the addresses and names of family members and the manager.
3. Direct any person who is a trustee, guardian or agent to provide a return of the names of persons for or of whom he is an agent, trustee or guardian and their addresses.
4. Direct any assessee to provide a statement of the names and addresses of all the persons to whom he has paid rent, interest, commission, royalty, etc., in any previous year.

5. Power of Survey (Section 133A): Section 133A of the Income Tax Act grants the power of survey to the income tax authority. The income tax authority has the power to enter any location within the limits of the area that has been allocated to him, any location that is occupied by a person under whom he exercises jurisdiction and any location that he is authorised to enter.

6. Power to Collect Certain Information (Section 133B): According to section 133B of the Income Tax Act, the income tax authority can enter any location within the limits of the area that has been allocated to him or any location that is occupied by a person under whom he exercises jurisdiction for collection of information which may be useful to them for any purpose.

7. Power to Inspect Registers of Companies (Section 134): According to section 134 of the Income Tax Act, the income tax authority has the power to inspect and take copies of any register of the members, debenture holders or mortgagees of any company, if necessary.

Powers of Income Tax Authorities in India
Subhashini Parihar

In India, the legislative branch of government is known as Parliament. It is a bicameral legislature consisting of two houses: the Rajya Sabha (Council of States) and the Lok Sabha (House of the People). Both houses of Parliament have specific roles in the legislative process.

Parliament is responsible for making laws, controlling the budget, and overseeing the actions of the executive branch of government. Parliament plays a crucial role in India’s system of government and serves as a critical forum for debate and decision-making.

This article discusses the constitution and composition of Parliament, as well as its legislative duties and different roles.

Constitution of the Parliament

In India, the Parliament consists of:

1. The President; and
2. Two Houses, i.e. the Council of States and the House of People

The President

The President is the head of state and the highest highest formal executive authority.

The Indian President is elected by an Electoral College. The Electoral College consists of elected members of the Lok Sabha, Rajya Sabha, and State Legislative assemblies, including elected members of the Legislative Assemblies of the National Capital Territory of Delhi and Puducherry.

The President holds office for five years and is eligible for re-election.

The Council of States

The Council of States, generally known as the Rajya Sabha or the upper house of Parliament, has 250 members. Twelve members are nominated by the President, and 238 members are representatives of the States and the Union Territories.

The members nominated by the President must have special knowledge or practical experience in either:

1. Literature; or
2. Science; or
3. Art; or
4. Social service; or

The members who represent the states must be elected by the elected member of the Legislative Assembly (MLAs) of such state. The members who represent the Union Territories are chosen in the manner that the Parliament, by law, determines.

The House of People

The House of People, generally known as the Lok Sabha or the lower house of Parliament, has 550 members. Of these, 530 represent the states, and 20 represent the Union Territories.

The representatives of the states are chosen from territorial constituencies by direct election, and the representatives of the Union Territories are selected in the manner as the Parliament by law determines.

Duration of the Houses of the Indian Parliament

The Council of States is a permanent body and does not dissolve. However, one-third of the members of the Council of States retire after every two years.

Unlike the Council of States, the House of People is a temporary body, and its duration is five years from its first meeting, meaning that the House of People dissolves after five years. However, the President may dissolve the Lok Sabha before the completion of its five-year term on the advice of the Prime Minister.

The duration of the House of People can also be increased to one year when the emergency is in operation and to six months after it ceases to operate.

Duties and Responsibilities of the Parliament

The legislative duties of the Indian Parliament include the following.

1. Introducing, Debating and Passing Bills

Any bill, including proposals for new laws or amendments to existing laws, can be introduced by any member of the Lok Sabha or the Rajya Sabha, with the permission of the Speaker or the Chairman, respectively. However, the money and finance bills can only be introduced in the House of People.

The bills must be passed by both houses of Parliament before they are sent to the President for assent. It is important to note that different bills require different kinds of majorities, which include simple majority, absolute majority, effective majority, and special majority. For example, bills that amend the Constitution require a special majority of two-thirds in both houses of Parliament, while other bills require only a simple majority.

2. Scrutinising the Budget

Just before the end of every financial year specifically in the month of February, the Finance Minister presents a statement to the House of People that includes the estimated revenue or expenditure of the Government of India for the coming financial year. Once the budget is presented, it is scrutinised by the Parliament’s Standing Committees on Finance and Public Accounts.

Once the Lok Sabha passes the budget, it is sent to the Rajya Sabha for its recommendations. The Rajya Sabha may either pass the budget or return it to the Lok Sabha with its recommendations. Then, the budget is sent to the President for his assent.

3. Overseeing the Executive Government

In India’s parliamentary system of government, the executive branch is collectively responsible for the legislative, which means that Parliament has the power to oversee the actions of the executive branch of government and hold it accountable for its actions.

The Prime Minister heads the executive branch of government in India, which includes the Cabinet of Ministers and the various departments and agencies of the government. It is responsible for implementing the policies and laws passed by Parliament.

Parliament has several mechanisms for overseeing the actions of the executive branch. One key mechanism is Question Hour. During Question Hour, members of Parliament can ask Ministers questions about their policies and actions and hold them accountable for their decisions.

Parliament has several standing committees that oversee the work of various government departments and agencies. Lok Sabha has the power to pass a motion of no confidence if it is dissatisfied with the government. A vote of no confidence can lead to the government’s resignation and the calling of new elections.

4. Ratifying Treaties and Agreements

Parliament in India has the power to ratify international treaties and agreements.

Under the Indian Constitution, the President can make treaties and agreements with foreign countries. He acts on the advice of the Council of Ministers. However, before a treaty or agreement can become binding on India, it must be ratified by Parliament.

Role of Parliament in Impeachment Processes

In India, the Parliament has a crucial role in the impeachment process of the President, Vice President, and judges of the Supreme Court and High Courts.

In the case of the President, the impeachment motion must be passed by a majority of not less than two-thirds of the total membership (two-thirds absolute majority) of both Houses of Parliament.

In the case of the Vice President or a judge of the Supreme Court or a High Court, the impeachment motion must be passed by a majority of not less than two-thirds of the members present and voting (two-thirds simple majority).

After the impeachment motion is passed, the President, Vice President, or Judge is deemed to have been removed from office with effect from the date on which the motion is passed.

Understanding the Legislative Branch of the Indian Government
Subhashini Parihar

The posts mentioned explicitly in the Constitution of India are known as constitutional posts. Constitutional posts are those whose formation is mandated by the Indian Constitution. The method of their appointment and removal is also mentioned.

The President has the authority to make various constitutional appointments under the Constitution. However, he only exercises this power on the recommendation of the Cabinet.

Posts such as President, Vice-President, Prime Minister, Governor and more are the Constitutional posts of India.

This law note talks about the appointment, oath and removal of the President, Vice President, Prime Minister, Governor, Chief Justice, Attorney General and Comptroller and Auditor General of India.

President

The President is the head of India. The executive power of the Union is vested in the President. The President exercises his executive power as per the Constitution of India or through officers subordinate to him. The appointment, oath and removal of the President are as follows.

Appointment

The President of India is appointed via election, but the people do not directly elect him. According to Article 54 of the Constitution of India, the President is elected by the Electoral College.

The Electoral College consists of the elected members of both Houses of Parliament, i.e., Lok Sabha and Rajya Sabha, and the elected members of the Legislative Assemblies of the state. Further, the nominated members of the Houses of Parliament and Legislative Assemblies do not have voting rights in the election of the President.

Qualifications

Article 58 of the Indian Constitution provides for the qualification of the President of India. The qualifications that a person must possess to be elected to the office of President of India are:

1. He must be a citizen of India.
2. He must have completed the age of 35 years.
3. He must be qualified for election as a House of the People member.
4. He must not hold any office of profit under the Government of India or the Government of any state or any local or other authority in control of any of the said Governments.

Oath by the President

An oath of office is an affirmation or commitment a person takes before undertaking the duties of a particular position. As given under Article 60 of the Indian Constitution, the President has to take an oath or affirmation before entering his office. The President takes oath in the presence of the Chief Justice of India and, in his absence, in the presence of the senior-most Judge of the Supreme Court.

Impeachment of the President

Article 61 of the Indian Constitution provides the procedure for removing the President from his office. The President can be removed from his office by impeachment for violating the provisions of the Indian Constitution. The charge for impeachment against him must be initiated by either House of Parliament.

Further, the charge must be in the form of a proposal contained in a resolution signed by not less than 1/4th of the total number of the House members, and it must be moved after a 14-day prior notice is given. Such a resolution must be passed by a majority of at least 2/3rd of the total membership of the House. The other House then investigates the charge. In such an investigation, the President has the right to appear and be represented. After the investigation, if the other House passes a resolution by a 2/3rd majority declaring that the charge is proven, the President will be removed from office as of the day the resolution is passed.

Vice-President

The Vice-President has the second-highest position in the country. He is the ex-officio chairman of the Rajya Sabha. The appointment, oath and removal of the Vice-President are as follows.

Appointment

The provision related to the appointment of the Vice President is given under Article 66 of the Constitution of India. Accordingly, the Vice President is elected indirectly by an Electoral College rather than through a direct election. The Vice President is chosen by secret ballot by members of both Houses of Parliament in a joint session, using a proportional representation system with a single transferable vote.

Further, the Vice President should not be a member of the Lok Sabha or any state’s House of Legislature if a member of either House of Parliament or a State Legislature is elected as Vice President. In such a case, he is regarded as having relinquished his position in that House on the day he assumes office as Vice President.

Qualifications

Article 66 of the Indian Constitution provides for the qualification of the Vice-President of India. The qualifications which a person must possess for being elected to the office of Vice-President of India are:

1. He must be a citizen of India.
2. He must have completed the age of 35 years.
3. He must be qualified for election as a member of the Council of States, i.e. Rajya Sabha
4. He must not hold any office of profit under the Government of India or the Government of any state or any local or other authority in control of any of the said Governments.

Oath by the Vice-President

Article 69 of the Constitution of India states that the Vice President has to take an oath or affirmation before entering his office. The President administers the oath of office and secrecy to the Vice President. In his absence, the person appointed by him on his behalf administers the oath to the Vice President.

Removal of the Vice-President

Article 67(b) of the Indian Constitution provides for removing the Vice President from his office. Accordingly, the Vice President can be dismissed by a Rajya Sabha resolution voted by an effective majority (majority of all members at the time) and approved by the Lok Sabha with a simple majority. However, no such resolution may be introduced until at least 14 days prior notice has been given.

Prime Minister

The Prime Minister is the head of the government of India. Although the President is the constitutional head of the state, all the executive power is vested in the Prime Minister and the Council of Ministers chosen by him. The appointment, oath and removal of the Prime Minister are as follows.

Appointment

As provided by Article 75 of the Constitution of India, the President appoints the Prime Minister. The President can barely use his discretion in appointing the Prime Minister because we have embraced English conventions. The Prime Minister can be chosen from the Lok Sabha or the Rajya Sabha members. If he is not a member of either House, he must be elected to either House of Parliament within six months of his appointment.

Oath by the Prime Minister

Article 75 of the Constitution of India states that the Prime Minister must take an oath or affirmation before entering his office. The President administers the oath of office and confidentiality to the Prime Minister in accordance with the forms prescribed in the Third Schedule for this purpose.

Governor

The Governor is the executive head of the state and the executive power is vested in him. However, the real power lies with the Chief Minister of the states and his Council of Ministers. He can exercise his executive power directly or indirectly through his subordinate officers. The appointment, oath and removal of the Governor are as follows.

Appointment

Article 155 of the Constitution of India provides for the appointment of the Governor. Accordingly, the Governor of the state is appointed by the President. He is not directly elected by the people or indirectly elected by a specially formed Electoral College, as is the case with the President. He is the central government’s choice.

Qualifications

According to Article 157 of the Indian Constitution, a person to be appointed as the Governor of the state must possess the following qualifications:

1. He must be a citizen of India.
2. He must have completed the age of 35 years.

Oath by the Governor

Article 159 of the Constitution of India states that the Governor must take an oath or affirmation before entering his office. The Governor is required to take an oath before entering his office in the presence of the Chief Justice of the High Court or, in the absence of the Chief Justice of the High Court, in the presence of the seniormost Judge of the High Court.

Removal of the Governor

The President can remove the Governor from his office, and the Cabinet has the power to advise the President in this regard. However, the Governor can also resign by writing to the President. Governors cannot be dismissed arbitrarily because the Central Government has lost confidence in them or because the Governor disagrees with their policies and ideology.

Chief Justice

The Chief Justice of India is the highest-ranking officer of the Indian federal judiciary and the Chief Judge of the Supreme Court of India. The appointment, oath and removal of the Chief Justice of India from his office are as follows.

Appointment

The Chief Justice shall be appointed amongst the senior-most judges of the Supreme Court who are considered qualified to hold the position.

Further, according to Article 126 of the Constitution of India, when the office of Chief Justice is vacated, or when the Chief Justice is unable to fulfil the responsibilities of his office due to absence or otherwise, the President may appoint one of the other judges of the court to fill the vacancy (Acting Chief Justice). In short, the Chief Justice of India is appointed by the President of India.

Oath by the Chief Justice

The Chief Justice has to take an oath or affirmation before entering his office. The President administers the oath of office to the Chief Justice.

Removal of the Chief Justice

Article 124(4) of the Constitution of India sets out the procedure for removing a Supreme Court judge, which also applies to Chief Justices. Once designated, the Chief Justice serves until he reaches the age of 65 or six years, whichever comes first. However, the Chief Justice may resign by writing to the President.

Further, the President can also remove the Chief Justice from his office for proven misbehaviour or incapacity. The President’s order can only be passed after it has been addressed to both Houses of Parliament in the same session. The address must be supported by a majority of the total membership of the Houses and by a majority of not less than two-thirds of the members of the Houses present and voting.

Attorney General

The Attorney General of India is the chief legal advisor of the government of India and advises the Union Government on all legal matters. The Attorney General is the government’s primary advocate before the Supreme Court. According to Article 76 of the Indian Constitution, he is the highest law officer in India. The appointment, oath and removal of the Attorney General of India are as follows.

Appointment

The President appoints the Attorney General of India. The person appointed as the Attorney General must be qualified to be appointed as a Judge of the Supreme Court. As the President appoints him, he holds his office at the pleasure of the President.

Qualifications

The qualifications which a person must possess to be elected as Attorney General of India are:

1. He must be a citizen of India.
2. He must have served as a judge in the High Court of any Indian state for five years or as an attorney for ten years.
3. He must also be an eminent jurist in the opinion of the President.

Oath by the Attorney General

Although the Constitution of India does not contain a provision related to the oath of the Attorney General, the President administers the oath or affirmation to the Attorney General of India.

Removal of the Attorney General

The Constitution of India does not provide the procedure or grounds for removing the Attorney General. However, the President can remove him at any time. The Attorney General can also resign from his office by writing to the President of India.

Comptroller and Auditor General

The Comptroller and Auditor General of India is responsible for auditing the national and state government’s receipts and expenditures. He is popularly known as CAG. He is also known as the “Guardian of the Public Purse.” The appointment, oath and removal of the CAG are as follows.

Appointment

The President of India appoints the Comptroller and Auditor General of India. He serves or maintains his office for a period of six years or till he attains the age of 65 years, whichever comes first.

Oath by the CAG

The Comptroller and Auditor General of India must take an oath or affirmation before entering his office. The President of India administers the oath to the CAG.

Removal of the CAG

The President can dismiss the CAG from his position in the same manner a Supreme Court judge is removed. He can be removed on proven misbehaviour and incapacity. Accordingly, the President’s order related to the removal of the CAG can only be passed after it has been addressed to both Houses of Parliament in the same session. The address must be supported by a majority of the total membership of the Houses as well as by a majority of not less than two-thirds of the members of the Houses present and voting.

Appointment, Oath, and Removal of Constitutional Posts in India
Subhashini Parihar

Arbitration is a process of determining disputes between parties without going to court.

The testimony and evidence presented by the disputing parties are reviewed by an arbitrator, who then makes a decision that may include a monetary award.

Like a judge in a court case, an arbitrator acts as the decision-maker and referee in an arbitration proceeding. An arbitrator is an impartial, disinterested third person who decides the dispute between the conflicting parties on their will.

Appointment of Arbitrator

According to the Arbitration and Conciliation Act of 1996, the parties can choose an arbitrator together. Further, according to the same Act, the parties are entitled to select the number of arbitrators, but they must ensure that it is not an even number. However, there can also be a sole arbitrator in case of failure to do this.

Section 11 of the Arbitration and Conciliation Act outlines the process for appointing an arbitrator(s). Accordingly, unless specifically stated by the parties, any individual of any nationality can serve as an arbitrator.

The section mentioned above also discusses the circumstances in which the parties or the two arbitrators (in the case of a tribunal with three arbitrators) cannot mutually agree upon appointing an arbitrator. In such a situation, if the matter involves international commercial arbitration, the Supreme Court or any individual or organization authorized by such Court can appoint the arbitrator at the request of a party. In domestic arbitration, the High Court or any individual or organization chosen by that court appoints the arbitrator.

Further, if arbitral institutions are unavailable in any case, the Chief Justice of the High Court in question may maintain a panel of arbitrators available to carry out the duties of the arbitral institutions. A decision on an application for the appointment of an arbitrator must be made within 30 days.

Functions of Arbitrator

The role of an arbitrator in arbitration is similar to that of a judge in a lawsuit. The arbitrator plays the role of a private judge. The principal responsibilities of the arbitrators include:

1. Interpreting and putting into practice the applicable laws and norms for arbitration
2. Presiding over the arbitration proceeding during which testimony of both parties is presented
3. Properly examining the testimonials and supporting evidence
4. Deciding to resolve the conflict
5. Managing the investigation’s scope to ensure that every piece of evidence and every witness has been thoroughly examined

The arbitrator must be fair and objective and should reveal every piece of information the parties must be aware of before the proceedings start.

Powers of the Arbitrator

Along with the responsibilities, the Arbitration and Conciliation Act gives the arbitrator certain powers to help them decide a dispute and deliver the award. These powers include the following:

1. Power to Administer an Oath to the Parties and Witnesses

The arbitrators have the authority to put all witnesses and the parties under oath. They may also issue interrogatories to the parties. The arbitrator performs this duty since they serve in a quasi-judicial capacity.

2. Power to Take Interim Measures

The arbitrators can take an interim measure when a party to the dispute approaches the tribunal. The arbitral tribunal may impose interim measures such as appointing a guardian for a juvenile or mentally unable person for arbitration, securing the amount in dispute in the arbitration, or such other interim measures as the arbitrator(s) may consider appropriate and effective.

3. Power to Appoint an Expert

If the arbitral tribunal thinks it is essential in any situation, he may appoint one or more experts to help him with a particular subject. He can also provide the experts with relevant data, documents, or objects for inspection and appoint the expert as a witness in a hearing if necessary.

4. Power to Proceed Ex-Parte

The arbitration tribunal has the power to proceed ex parte (an order which is given in the absence of one of the parties caused on their own will) in the following conditions:

• In cases where the claimant fails to submit or communicate their statements under section 23 of the Arbitration and Conciliation Act, 1996.
• In cases where the respondent fails to submit or communicate their statements under section 23 of the Arbitration and Conciliation Act, 1996.
• In cases where one or more disputing parties fail to attend an oral hearing or provide the document or other type of documentary evidence that the tribunal has requested.

5. Power to Make Awards

An arbitral award is identical to a judicial decision or judgment of the court. Declaring an arbitral judgment is not simply a power granted to arbitral tribunals. It is also a duty on their part to consider all the relevant evidence before making a decision.

Removal of Arbitrator

Section 12(3) of the Arbitration and Conciliation Act mentions the provisions for removing arbitrators. Following section 12(3), removal proceedings can be brought against an arbitrator if it seems that they are linked to one of the parties or have a personal stake in the outcome of the dispute, making it impossible for them to act impartially throughout the proceedings.

An arbitrator may also leave the case midway if certain unique circumstances prevent him from acting in accordance with the needs of the case, and a new arbitrator is then appointed. An arbitrator can also be dismissed if they engage in misconduct during the arbitration.

Grounds for Challenging the Appointment of the Arbitrator

An appointment of an arbitrator can only be questioned under the following two conditions:

1. Circumstances exist that give rise to justified suspicions about his independence or impartiality, or
2. He lacks the qualifications recognized by the parties.

Let me explain both conditions.

1. Non-Disclosure of Certain Circumstances

Before being appointed as an arbitrator, a prospective arbitrator must inform the parties to the dispute in writing of any circumstances likely to give rise to reasonable doubts about his impartiality or independence. The arbitrator must fulfil this obligation immediately, that is, before assuming his role as arbitrator. And an arbitrator can be contested if he fails to do so.

2. Non-Qualification

Although the Arbitration and Conciliation Act makes no explicit requirements for arbitrators. He must, however, possess specialized knowledge in the subject matter of the dispute at hand. In other words, an arbitrator should be well-versed in the subject area of the dispute. And, if he doesn’t possess the necessary qualifications the parties agreed to, his appointment can be challenged.

Further, any arbitrator who fits into one of the categories listed in the seventh schedule of the Arbitration and Conciliation Act is automatically disqualified, according to new section 12(5), inserted by the amendment in 2015.

The Seventh Schedule of the Arbitration and Conciliation Act includes the following:

1. Relationship of the arbitrator to the conflicting parties
2. Relationship of the arbitrator to the dispute
3. The interest of the arbitrator in the dispute

Conclusion

An arbitrator is a decision-maker in the arbitration proceedings. The parties can mutually choose the number of arbitrators. However, they must ensure that it is not an even number. The arbitrator tribunal will always consist of either an odd number or sole arbitrators.

Furthermore, the arbitrator can be removed on the grounds mentioned in the Arbitration and Conciliation Act.

Appointment, Removal, Functions, and Powers of Arbitrators
Subhashini Parihar

In India, weed has a history of over 2000 years. Weed is derived from the plant Cannabis. It has different species, such as indica, sativa, hybrid and ruderalis.

Weed is also addressed as Marijuana, Cannabis, Charas, Ganja, Bhang, etc., and is popular among young adults for a variety of reasons, such as peer pressure from high school, college or a new job, to get relief from mental health conditions such as anxiety and mood disorders, etc.

Although Bhang is derived from cannabis, its consumption in Thandai (a drink made along with water, milk, dry fruits, sugar, etc.) is permitted in India. But is weed legal in India?

To answer this question, here is an article that provides information concerning the legality of weed in India, along with some other related aspects.

Meaning of Weed

Weed is a greenish-grey material formed from dried Cannabis flowers. It is a psychoactive drug. The primary psychoactive ingredient in cannabis is Tetrahydrocannabinol (THC), along with around 100 more cannabinoids.

The majority of the population primarily consumes it through joints, water pipes (also known as bongs), or blunts (marijuana rolled in cigar wraps). Additionally, the consumption of weed through vaporisers is also in trend.

Is Weed Legal in India?

In India, the Narcotic Drugs and Psychotropic Substances (NDPS) Act of 1985 declares the possession of weed or marijuana as an illegal and punishable offence regardless of the reason for possessing it. It includes provisions for a graded punishment system, which implies that the severity of the punishment would depend on the amount of drug or substance involved in a particular case.

According to section 20 of the Narcotic Drugs and Psychotropic Substances Act of 1985, any activity related to cannabis, such as the production, sale, transportation, import or export of cannabis over state lines, is a punishable offence.

• The specified punishment for possessing a small quantity of weed is rigorous imprisonment of not more than 6 months, a fine of 10,000 rupees, or both.
• The punishment for having more than a small quantity but less than the commercial quantity is rigorous imprisonment of not more than 10 years, a fine of Rs. 1 lakh or both.
• And, the specified punishment for possessing commercial quantity is rigorous imprisonment for 10-20 years, a fine of Rs. 1-2 lakh, or both.

For the purpose of punishment, the Act has specified the quantity as:

1. Small quantity: 1 kg or less than 1 kg
2. Commercial quantity: 20 kg or more than 20 kg

Recreational and Medical Use of Weed

Cannabis or weed is used for two purposes, i.e. medical and recreational uses.

The cannabis plant is used medicinally to treat conditions including cancer, epilepsy, and sickle cell anaemia. And, recreationally, it is used to purposely alter one’s state of consciousness, frequently resulting in emotions of joy and happiness.

Cannabis use is prohibited in India, whether for medical or recreational purposes. Therefore, no legal protection is granted for the medical or recreational use of cannabis/weed in India.

Why Is Bhang Legal?

In India, cannabis is regulated by the NDPS Act. The Act permits the use of leaves, stems and seeds of cannabis. However, using flowers and resins of cannabis is not permitted under the NDPS Act.

Bhang and weed are both derived from the plant cannabis. Still, in India, Bhang is legal, and weed is not. This is because Bhang is derived from the leaves and stems of cannabis. And, as the NDPS Act permits the use of the leaves, stems and seeds of cannabis. On the other hand, weed is illegal because it is derived from the flower of cannabis, which the NDPS Act does not permit.

States Immune From Marijuana Prohibition

Although the NDPS Act declares the use of weed as illegal regardless of the purpose for its use or possession, different states have different legislation related to it. Some states enjoy immunity against the prohibition of marijuana. Odisha is one of the Indian states where marijuana is legal, and inhabitants commonly consume it with ‘chillums’ within the state’s borders. Additionally, Uttarakhand permits the cultivation of Hemp.

Countries Where Weed Is Legal

Although the use of marijuana or weed has been declared illegal in many countries, there are some countries that recognise weed as a legal substance. Some countries that have legalised the use of weed are Canada and Uruguay.

Further, it is acceptable to cultivate marijuana for personal use and to use cannabis privately in South Africa and Spain.

Peru allows the possession of 8 gm of marijuana for immediate consumption and the production and commercialisation of cannabis oil for medical use. Additionally, Australia also permits the use of weed but only for medical benefits.

Several European and Latin American countries, such as Greece, Austria, Finland, etc., also permit the use of weed but only for medical benefits.

Furthermore, in the USA, states including Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington have legalised marijuana for recreational use. Georgia permits weed consumption but declares its sale or cultivation as illegal.

Should Weed Be Legalised In India?

As every aspect has two sides. Similarly, weed has pros and cons.

If we talk in favour, it should be legalised in India. Declaring cannabis legal will have several benefits as it has medicinal uses and will contribute to the economy. The Hemp seeds of cannabis have nutritional benefits. It will also provide a new way for the government to collect taxes.

Additionally, weed is beneficial for treating post-chemotherapy side effects, arthritis, skin disease, mental health, and metabolic issues.

Proper statutory laws in India can control the illegal transportation of weed or marijuana. Legalising weed will also help reduce black marketing because even though it is illegal, a person can easily access it.

Further, if we talk against it, no hard evidence supports weed’s medicinal use. The long-term use of weed can result in permanent cognitive deficiency and mental health problems such as schizophrenia, depression, and anxiety. It can also cause harm and damage to the lungs.

Conclusion

It can be concluded that smoking weed is illegal in India. The NDPS Act of 1985 specifies the penalty for carrying marijuana based on the quantity. Still, some states in the country, such as Odisha and Uttarakhand, have no penalties concerning weed.

Further, when discussing whether it should be legalised, there are two aspects. One is in favour, and the other is against it. Legalising weed will be beneficial for the economy but not for human health.

What are your opinions on this? Should weed be legalised in India? What will be the changes in society and livelihoods after weed is legalised?

What Is the Legality of Weed, Marijuana, and Bhang in India?
Subhashini Parihar

India is a democratic country, and as per the Indian Constitution, every citizen has the right to freedom of speech and expression. However, this right is subject to certain reasonable restrictions essential for maintaining public order, morality, and the integrity of the country.

Advertising plays a significant role in business operations, but it must comply with the country’s laws and regulations. In India, various restrictions can be enforced to govern advertising and ensure it is fair, ethical, and lawful.

In this article, we will explore some of the grounds for restrictions on advertisement in detail.

Meaning of Advertisement

Advertisement, or simply an ad, is a type of communication aimed at promoting or selling a product, service, or idea. It is created by businesses, organisations, or individuals to reach a specific audience and influence them to take a particular action, such as making a purchase or supporting a cause.

Advertisements can be in the form of print ads in newspapers and magazines, television and radio commercials, billboards, online ads, and more. The primary objective of advertising is to create awareness, generate interest, and ultimately drive sales or achieve a particular goal.

Four Grounds for Restrictions on Advertisement

The restrictions on advertisements are necessary to safeguard the interests of the general public, protect consumers from misleading or false claims, and maintain social and moral values.

Here are four major grounds on which restrictions can be imposed on advertisements.

1. Drugs and Magic Remedies

The Drugs and Magic Remedies (Objectionable Advertisements) Act of 1954 aims to prevent advertisers from making false or misleading claims about drugs and remedies that have magical properties. This Act is intended to protect consumers from being misled by advertisements that claim unrealistic results.

Any person found violating the provisions of the Drugs and Magic Remedies (Objectionable Advertisements) Act by publishing or distributing such objectionable advertisements is liable to imprisonment of up to 6 months, a fine of up to Rs. 1,000, or both. For subsequent offences, the punishment can include imprisonment of up to one year, a fine of up to Rs. 5,000, or both.

2. Indecent Representation of Women

The Indecent Representation of Women (Prohibition) Act of 1986 seeks to prevent the exploitation of women in the media by prohibiting the depiction of women in an indecent or derogatory manner through any means of advertisement, publication, writing, or painting.

The Indecent Representation of Women (Prohibition) Act also prohibits the sale, distribution, or circulation of any such material that depicts women in an indecent manner. The purpose of the Act is to protect the dignity of women and promote gender equality by preventing their objectification in the media.

The violation of the Indecent Representation of Women (Prohibition) Act can lead to penalties, including both fines and imprisonment. The penalty for the first offence is imprisonment for a term of up to and not more than two years and a fine of not more than 10,000 rupees. In case of a subsequent offence, the imprisonment may extend to 5 years, and a fine of up to 10,000 rupees can be imposed.

3. Prize Competition

In India, the Prize Competitions Act of 1955 governs prize competitions. According to the Act, a prize competition is any contest where prizes are awarded to participants based on their performance of skill, chance, or both.

The provisions of the Prize Competitions Act apply to prize competitions held both inside and outside India but which are advertised or promoted in India. Organisers of prize competitions must obtain a licence from the state government before conducting the competition.

The Prize Competitions Act also lays down penalties for violations of its provisions. If the competition is conducted without a licence, the organisers may be punished with a fine of up to 1,000 rupees, imprisonment for up to 3 months, or both. Furthermore, if the competition is found to have violated the Act, the prizes and entry fees collected from the participants may also be forfeited.

Although the Prize Competitions Act governs the conduct of prize competitions, advertisements promoting or marketing the competitions are also subject to regulation by the Advertising Standards Council of India and other laws.

4. Misleading Advertisements

Misleading advertisements contain false or deceptive claims about the nature, quality, or efficacy of a product or service or make false or misleading statements about the price or quantity of a product or service.

The Consumer Protection Act of 2019 was enacted to safeguard consumers’ interests and promote fair trade practices. The Act includes provisions that prohibit misleading advertisements to prevent consumers from being deceived.

The penalty for violating the provisions of the Consumer Protection Act can vary based on the nature and severity of the violation. For instance, if a person or business publishes a misleading advertisement, they may be fined up to 10 lakh rupees for the first offence and up to 50 lakh rupees for subsequent offences.

Apart from fines, the Act also provides for other penalties, such as imprisonment for a term ranging from 3 months to 2 years, cancellation of license or registration, and a ban on conducting business. The type and extent of the penalty depend on the gravity of the offence and the discretion of the authorities.

Summing up

Advertising is a crucial tool for businesses and organisations to promote their products, services, or ideas to the public. However, advertising’s impact is not limited to its commercial benefits but can also have broader social implications.

The Indian government has established various grounds for imposing advertising restrictions to ensure that it is ethical, fair, and adheres to the country’s laws and regulations. These restrictions are vital for maintaining public order, morality, and the country’s integrity while safeguarding consumers from misleading or false advertisements.

• Role of Media and Its Importance in Society

Grounds for Restrictions on Advertisement in India
Subhashini Parihar

The determination of income tax liability is based on the residential status of a citizen. And the residential status of the assessee, i.e. the taxpayer, is determined based on his residence in the previous financial year.

In this article, you will read about the meaning of residential status and its types in the context of income tax in India.

What Is Residential Status?

Residential status is any person’s status as to the period he has stayed in India for the past five years.

Types or Classification of Residential Status

Section 6 of the Income Tax Act (1961) has classified the residential status into three categories:

1. Resident and ordinarily resident (persons who are ordinarily resident in India)
2. Non-ordinarily resident (persons who are not ordinarily resident in India)
3. Non-resident (persons who are non-resident)

1. Resident and Ordinarily Resident

There are different types of assessees, such as individual persons, Hindu Undivided Families, companies and firms. The rule to determine the residential status of different assessees is different.

Individual person: Section 6(1) of the Income Tax Act states that a person must fulfil one of the following conditions to be called a resident in India:

1. Such a person has stayed in India for 182 days or more than 182 days in toto (totally, entirely) in the previous year; or
2. Such a person has stayed in India for 60 days or more in toto in the previous year and 365 days or more in toto during the 4 years immediately preceding the previous year.

Hindu Undivided Family, firm or any other association of persons: Section 6(2) of the Income Tax Act states that where the control and management of a Hindu Undivided Family, firm or any other association of persons are situated wholly or partly in India in the previous year, it is said to be resident in India.

Companies: Section 6(3) provides that the company must fulfil the following two conditions to be called a resident in India:

1. Such company is an Indian company in the previous year, and
2. The control and management of the company were situated in India the previous year.

Non-Ordinarily Resident

Along with the provisions related to the resident in India, section 6 of the Income Tax Act also provides provisions about persons called non-ordinarily resident in India.

Individual person: According to section 6(6)(a) of the Income Tax Act, a person is considered as non-ordinarily resident in India:

1. If such a person has not been resident in India in 9 out of the 10 previous years preceding the previous year, or
2. If such a person has not been resident in India for 730 days or more in toto during the 7 previous years preceding the previous year.

Hindu Undivided Family: According to section 6(6)(b) of the Income Tax Act, the Karta or manager will be considered as non-ordinarily resident in India if:

1. The Karta or manager has not been resident in India in 9 out of the 10 previous years preceding the previous years, or
2. The Karta or manager has not been resident in India for 730 days or more in toto during the 7 previous years preceding the previous year.

Non-Resident

The person or any other assessee is known as a non-resident in India if he is a citizen of India but is not resident in India.

Individual person: A person is said to be a non-resident in India if he does not fulfil the conditions necessary to be a resident in India under section 6(1) of the Income Tax Act.

Hindu Undivided Family, firm, company or any other association of persons: Suppose the control and management of affairs of a Hindu undivided family, firm, company or any other association of persons are situated wholly outside India in the previous year. In that case, such an undivided Hindu family, firm, company, or association of persons is considered non-resident in India.

Related:

• What Is Tax Evasion?
• 7 Kinds of Defaults and Their Penalties Under Tax Law in India
• Powers of Income Tax Authorities in India

Residential Status and Its Types as Per Indian Taxation Law
Subhashini Parihar

Cheque bouncing, a term familiar to many, encapsulates a series of events that can lead to legal ramifications for the cheque issuer and recipient.

What begins as a routine financial transaction can quickly escalate into a legal dispute, with implications ranging from monetary penalties to criminal prosecution.

This article will briefly discuss section 138 of the Negotiable Instruments Act 1882, which talks about the dishonour of cheques because of insufficient funds in the account.

What Is a Cheque?

A cheque is a written instrument that instructs a bank to pay a certain sum of money from the issuer’s bank account to the person or organisation named on the cheque. It serves as a formal promise of payment.

The person who writes and signs the cheque issuing the payment instructions is known as a drawer. The person or entity to whom the payment is directed and who receives the money from the cheque is known as the payee. The drawee is the bank on which the cheque is drawn.

What Is a Cheque Bounce or Dishonoured Cheque?

Cheque bouncing, also known as dishonoured cheque or bounced cheque, occurs when a cheque is presented for payment to a bank, but the bank refuses to honour it due to insufficient funds in the issuer’s account or various other reasons.

Section 138 of the Negotiable Instruments Act (NIA) is a pivotal legal provision that deals specifically with the offence of dishonour of cheques.

Reasons for the Dishonour of a Cheque

Section 138 of the NIA was enacted to guarantee timely payment to the payee and strengthen the legitimacy of negotiable instruments such as cheques. By making the drawer of a dishonoured cheque criminally liable, it discourages people from issuing cheques with inadequate amounts in the bank account.

Cheques can be dishonoured for various reasons, such as:

1. Insufficient Funds: This is the most common reason a cheque bounces. The cheque will be dishonoured if the drawer’s bank account does not have enough money to cover the amount specified on it when it is presented for payment.
2. Signature Mismatch: If the signature on the cheque is different from the specimen signature submitted by the account holder to the bank, or if the signature is missing or irregular, the bank may refuse to honour the cheque.
3. Mismatched Account Details: If the account number, name of the payee, or other details on the cheque do not match the information held by the bank, the cheque may be dishonoured.
4. Frozen Account: In some cases, a bank may freeze a customer’s account due to legal proceedings, debt collection efforts, or suspicion of fraudulent activity. Any cheques drawn on the account will be dishonoured if the account is frozen.

Section 138 of the Negotiable Instruments Act, 1882

Section 138 of the Negotiable Instruments Act regards the dishonour of a cheque as an offence. Accordingly, if a person issues a cheque to discharge a debt or liability, and the bank dishonours the cheque due to insufficient funds or any other reason, he is said to commit an offence.

Upon receiving information about the dishonoured cheque, the payee (the person to whom the cheque was issued) must send a legal notice to the drawer (the person who issued the cheque) demanding payment. Such a notice must be served within 30 days.

If the drawer fails to make payment within 15 days of receiving the legal notice, the payee may file a complaint against the drawer under section 138 of the Negotiable Instruments Act.

The person committing the offence is liable to be punished with up to two year’s imprisonment and a fine, which may be double the cheque amount or both.

What Is Cheque Bouncing, Its Reasons and Punishment?
Subhashini Parihar

Law and society operate hand-in-hand. If society’s needs and opinions change, the law needs to change. Therefore, a provision for amending the Indian Constitution has been made to overcome the difficulties that may be encountered in the future in the Constitution’s workings.

The Constitution of India is neither flexible nor rigid — it is a mixture of both. According to Article 368 of Part XX, the Parliament can amend it, keeping in mind that the Constitution’s ‘basic structure’ does not change.

Several amendments have been made to it to date. This article covers the important parts of all the amendments made to the Indian Constitution from 1951 till today.

1. The Constitution (First Amendment) Act, 1951

The Constitution (First Amendment) Act, 1951, was proposed by Jawaharlal Nehru, the then Prime Minister of India, on May 10, 1951. On June 18, 1951, the Indian Parliament passed it.

The 1st Amendment has amended Articles 15, 19, 85, 87, 174, 176, 341, 342 and 376. It also inserted the 9th Schedule and two new Articles, i.e., Articles 31A and 31B, into the Indian Constitution. A book titled “Sixteen Stormy Days” was written by Tripurdaman Singh and is about the Constitution (First Amendment) Act, 1951.

2. The Constitution (Second Amendment) Act, 1952

Article 81(1)(b) of the Constitution of India, which dealt with the representation of states in Parliament, was amended under the Second Amendment.

3. The Constitution (Third Amendment) Act, 1954

The Constitution (Third Amendment) Act, passed in 1954, amended Entry 33 of the Concurrent List and expanded its scope. Parliament brought this amendment because the country’s food situation was difficult, and essential commodities were in short supply.

4. The Constitution (Fourth Amendment) Act, 1955

This amendment clarified the difference between clauses (1) and (2) of Article 31 and amended Article 31(2) of the Constitution of India.

According to the amended provision, the compensation was only payable in the event of compulsory acquisition. It also broadened the scope of Article 31A and included more statuses in the 9th Schedule of the Constitution. Further, it also amended Article 305 of the Indian Constitution.

5. The Constitution (Fifth Amendment) Act, 1955

Under this amendment, Article 3 of the Constitution of India was amended. The amended Article provided a time limit within which the states had to express their views on the Bill. If they failed to express their views within the specified time, the Bill could be passed by the Parliament.

6. The Constitution (Sixth Amendment) Act, 1956

The 6th Amendment made changes in Seventh Schedule Entry 92 of List I and Entry 54 of List II of the Indian Constitution. It also added clause (3) to Article 286 of the Constitution of India, restricting the state’s power to tax important goods or commodities in inter-state trade.

7. The Constitution (Seventh Amendment) Act, 1956

The 7th Amendment has amended Articles 1, 80, 81, 82, 131, 170, 171, 216, 220, 224, 230, 232, 239, 240, 298, 371, the 1st Schedule and the 4th Schedule of the Constitution. Also, it inserted new Articles 285A, 290A, 350A, 350B, 372A and 378A.

8. The Constitution (Eighth Amendment) Act, 1960

This amendment amended Article 334 of the Constitution of India and extended the reservation period of seats in the Legislatures for Scheduled Castes (SCs), Scheduled Tribes (STs) and Anglo-Indians from 10 years to 20 years.

9. The Constitution (Ninth Amendment) Act, 1960

The 9th Amendment redefined the boundary of the state of West Bengal and made necessary changes to the 1st Schedule. It gave Pakistan control of the Indian region of Berubari, which is located in West Bengal, in accordance with the Indo-Pakistan Agreement.

10. The Constitution (Tenth Amendment) Act, 1961

With retroactive effect, this amendment expanded the list of Union Territories in the 1st Schedule of the Indian Constitution to include two new territories of Dadra and Nagar Haveli.

11. The Constitution (Eleventh Amendment) Act, 1961

A new clause (4) was added to Article 71 of the Indian Constitution. The 11th Amendment made it explicit that no vacancy in the electoral college, as mentioned in Articles 54 and 55 of the Constitution, may be used to challenge the election of the President or the Vice President.

12. The Constitution (Twelfth Amendment) Act, 1962

This amendment added the territories of Goa, Daman and Diu as a Union Territory in the 1st Schedule.

13. The Constitution (Thirteenth Amendment) Act, 1962

Article 371A was added to the Constitution of India through this amendment. Through this amendment, Nagaland acquired the status of a state, and Article 371A consists of special provisions for Nagaland.

14. The Constitution (Fourteenth Amendment) Act, 1962

This amendment added the territory of Pondicherry as a Union Territory in the 1st Schedule of the Indian Constitution. It also amended Article 240 and inserted a new Article, i.e., Article 239A, into the Constitution.

15. The Constitution (Fifteenth Amendment) Act, 1963

This amendment amended Article 217 of the Constitution of India and increased the retirement age of the High Court judge from 60 to 62. Articles 124, 128, 217 (3), 222, 299, 311 (2), 316, and the 7th Schedule were also amended under the 15th Amendment. This amendment also inserted a new Article, i.e., Article 224A, and a new clause (1A) into Article 226 of the Constitution of India.

16. The Constitution (Sixteenth Amendment) Act, 1963

The 16th Amendment has amended clauses (2), (3) and (4) of Article 19. It also amended Articles 84, 173 and the 3rd Schedule.

17. The Constitution (Seventeenth Amendment) Act, 1964

The scope of Article 31A of the Indian Constitution was broadened by the 17th Amendment. This amendment also added 44 new Acts to the 9th Schedule of the Constitution of India.

18. The Constitution (Eighteenth Amendment) Act, 1966

The scope of Article 3 of the Indian Constitution was broadened by the 18th Amendment.

19. The Constitution (Nineteenth Amendment) Act, 1966

This amendment amended Article 324 of the Constitution, and the Election Commission could no longer appoint election tribunals to resolve election disputes between the members of Parliament and the State Legislature.

20. The Constitution (Twentieth Amendment) Act, 1966

The 20th Amendment inserted a new Article 233A into the Constitution of India and validated district judges’ appointments, postings, promotions, transfers, and judgments.

21. The Constitution (Twenty-first Amendment) Act, 1967

The 21st Amendment amended the 8th Schedule of the Indian Constitution and recognised “Sindhi” as a constitutionally recognised language in India.

22. The Constitution (Twenty-second Amendment) Act, 1969

The 22nd Amendment inserted two new Articles to the Constitution of India, i.e., Articles 244A and 371B. It also added a new clause (1A) to Article 275(1) of the Constitution.

23. The Constitution (Twenty-third Amendment) Act, 1969

This amendment amended Article 334 of the Indian Constitution and extended the reservation period for the Scheduled Castes and Scheduled Tribes for a further period of ten years, i.e. 1980.

24. The Constitution (Twenty-fourth Amendment) Act, 1971

This amendment reversed the judgment of Golaknath’s case. According to the 24th Amendment, the Parliament has the power to amend the Fundamental Rights of any part of the Constitution. Under Article 368, the Parliament can alter or amend any provision of the Constitution.

25. The Constitution (Twenty-fifth Amendment) Act, 1971

This amendment amended clause (2) of Article 31 and inserted a new clause (2A) into Article 31 of the Indian Constitution. It also inserted a new Article 31C into the Constitution of India.

26. The Constitution (Twenty-sixth Amendment) Act, 1971

The 26th Amendment omitted Articles 291 and 362 from the Indian Constitution. Further, a new Article, i.e. Article 363A, was added to the Indian Constitution.

27. The Constitution (Twenty-seventh Amendment) Act, 1971

This amendment amended Articles 239A and 240. And two new Articles, i.e. Article 239B and Article 371C, were inserted into the Indian Constitution.

28. The Constitution (Twenty-eighth Amendment) Act, 1972

A new Article, i.e. Article 312A, was inserted, and an existing Article, i.e. Article 314, was repealed by this amendment of the Indian Constitution.

29. The Constitution (Twenty-ninth Amendment) Act, 1972

The 29th Amendment has inserted two Kerala Land Reform Acts in the 9th Schedule of the Constitution of India.

30. The Constitution (Thirtieth Amendment) Act, 1972

The 30th Amendment of the Constitution amended Article 133 of the Indian Constitution. It changed the value criteria used to determine the basis for appeals in Supreme Court of India cases involving civil litigation to one involving a significant legal matter.

31. The Constitution (Thirty-first Amendment) Act, 1973

The 31st Amendment amended Article 81(1) of the Indian Constitution and increased the strength of the Lok Sabha from 525 to 545.

32. The Constitution (Thirty-second Amendment) Act,1973

The 32nd Amendment amended Article 371 and inserted two new Articles: Article 371D and Article 371E, into the Indian Constitution. It also amended the 7th Schedule.

33. The Constitution (Thirty-third Amendment) Act, 1974

The 33rd Amendment has amended Articles 101 and 190 of the Indian Constitution. The amendment outlined the process for state legislators to resign and the procedure for the house speaker to confirm and accept a resignation.

34. The Constitution (Thirty-fourth Amendment) Act, 1974

This amendment amended the 9th Schedule of the Constitution for the fourth time. It added 20 State Land Reforms Acts to the 9th Schedule.

35. The Constitution (Thirty-fifth Amendment) Act, 1974

This amendment added Article 2A to the Indian Constitution whereby ‘Sikkim’ got the status of an ‘Associate State’.

It also inserted the 10th Schedule to the Indian Constitution. Note: The 10th Schedule was inserted by the 35th Amendment Act and omitted by the 36th Amendment Act, and, then again inserted by the 52nd Amendment Act (Anti-deflection Law).

36. The Constitution (Thirty-sixth Amendment) Act, 1975

‘Sikkim’ became the full-fledged State of the Indian Union by this amendment. The 36th Amendment has amended the 1st Schedule of the Indian Constitution and included ‘Sikkim’ as the 22nd State of India. It also amended the 4th Schedule of the Constitution. A new Article 371F was also inserted into the Constitution of India through this amendment.

Further, Article 2A and the 10th Schedule, which was added to the Constitution by the 35th Amendment, were repealed.

37. The Constitution (Thirty-seventh Amendment) Act, 1975

The 37th Amendment has amended Articles 239A and 240 of the Indian Constitution. This amendment provided for the formation of a legislative assembly for Arunachal Pradesh.

38. The Constitution (Thirty-eighth Amendment) Act, 1975

This amendment has amended Articles 123, 213, 239B, 352, 356, 359 and 360 of the Indian Constitution. This amendment expanded the President’s and the Governor’s authority to enact ordinances.

39. The Constitution (Thirty-ninth Amendment) Act, 1975

The 39th Amendment of the Constitution has added a new Article 329A to the Indian Constitution. It also added some Central and State Laws in the 9th Schedule of the Constitution of India.

40. The Constitution (Fortieth Amendment) Act, 1976

The 40th Amendment has amended the 9th Schedule of the Constitution of India. Consequently, 64 new Central and State Land Reforms Laws are in the Schedule.

41. The Constitution (Forty-first Amendment) Act, 1976

This amendment amended the 5th Schedule of the Indian Constitution, and the retirement age of the Chairman and Members of the State Public Service Commissions was increased from 60 to 62 years.

42. The Constitution (Forty-second Amendment) Act, 1976

The 42nd Amendment Act is often regarded as the mini Constitution of India. It inserted two new Parts to the Constitution of India, i.e., Part IVA and Part XIVA.

• Part IV-A consists of one Article: Article 51A.
• Part XIV-A consists of two Articles: Articles 323A and 323B.

It added eleven Articles to the Indian Constitution- Articles 31D, 32A, 39A, 43A, 48A, 131A, 139A, 144A, 226A, 228A and 257A. It also substituted 36 Articles from the Constitution.

This amendment significantly changed the Indian Constitution’s Preamble by adding the words SOCIALIST, SECULAR, and INTEGRITY. It also amended Articles 31A and 39(f).

It further amended Articles 55, 81, 82, 170, 311, 312, 330, 332, 352, 353, 356, 357, 358, and 359 of the Constitution. It also amended Article 74, which made the President bound by the advice of the Council of Ministers.

Some important changes were made to the judiciary by the forty-second amendment. It added six new Articles: Articles 32A, 131A, 139A, 144A, 226A and 228A. It also amended four Articles: Article 145, 225, 227 and 228 of the Constitution of India.

It also added two new clauses (4) and (5) to Article 368 of the Indian Constitution.

43. The Constitution (Forty-third Amendment) Act, 1977

This amendment basically amended the 42nd Amendment Act. It omitted Articles 31D, 32A, 131A, 144A, 226A and 228A of the Constitution of India. And, Articles 145, 226, 228 and 366 were amended.

44. The Constitution (Forty-fourth Amendment) Act, 1978

The 44th Amendment has amended Articles 22, 74, 83, 103, 118, 172, 192, and 371F of the Indian Constitution. And, the Articles 18, 19, 21, 25, 31, 32, 34, 35, 54, 59, 132(2), 217(2)(c), 329-A, 352, 356, 358, 359, and 360 of the Constitution were omitted. This amendment included specific new Articles to the Indian Constitution, i.e. Articles 300A, 361A, 134A and 139A.

Additionally, it amended Articles 123, 213, and 239B of the Indian Constitution by adding a clause (4). Articles 19(1)(f), 31 and 257A of the Constitution were repealed.

45. The Constitution (Forty-fifth Amendment) Act, 1980

The 45th Amendment has amended Article 334 and extended the reservation period of seats for Scheduled Castes and Scheduled Tribes in the Lok Sabha and the State Assemblies from 30 to 40 years.

46. The Constitution (Forty-sixth Amendment) Act, 1982

This amendment has amended Articles 269, 286, 286(3), and 366 of the Constitution. It also inserted a new entry, 92B, in List I of the 7th Schedule of the Indian Constitution.

47. The Constitution (Forty-seventh Amendment) Act, 1984

The 47th Amendment has added 14 State Land Reform Acts in the 9th Schedule of the Constitution of India.

48. The Constitution (Forty-eighth Amendment) Act, 1984

The 48th Amendment has amended clause (5) of Article 356 of the Indian Constitution.

49. The Constitution (Forty-ninth Amendment) Act, 1984

The 49th Amendment has amended Article 244, the 5th Schedule and the 6th Schedule of the Indian Constitution. Tripura was recognised as a tribal state by the 49th Amendment.

50. The Constitution (Fiftieth Amendment) Act, 1984

The 50th Amendment to the Constitution amended Article 33 of the Indian Constitution.

51. The Constitution (Fifty-first Amendment) Act, 1984

This amendment has amended Articles 330 and 332 of the Constitution of India. It was also outlined that reservations for Scheduled Tribes should be made in Lok Sabha for Nagaland, Meghalaya, Mizoram, and Arunachal Pradesh, as well as in the legislative assemblies of Meghalaya and Arunachal.

52. The Constitution (Fifty-second Amendment) Act, 1985

The 52nd Amendment Act has amended Articles 101, 102, 190, and 191 and added the 10th Schedule to the Constitution of India. The 10th Schedule is known as the Anti-Defection Law.

53. The Constitution (Fifty-third Amendment) Act, 1986

The 53rd Amendment Act has inserted a new Article 371G and conferred the statehood to the Union Territory of Mizoram as the 23rd State of India.

54. The Constitution (Fifty-fourth Amendment) Act, 1986

Part D of the 2nd Schedule of the Constitution of India was amended by the 54th Amendment. It has also amended Articles 125 and 221 of the Constitution. And, the salary of CJI and other judges was increased.

55. The Constitution (Fifty-fifth Amendment) Act, 1986

The 55th Amendment Act has conferred statehood to the Union Territory of Arunachal as the 24th State of India. It added a new Article, i.e., Article 371H, to the Indian Constitution.

56. The Constitution (Fifty-sixth Amendment) Act, 1987

The 56th Amendment has added a new Article 371(I) to the Indian Constitution. It contains special provisions related to the State of Goa.

57. The Constitution (Fifty-seventh Amendment) Act, 1987

This amendment has amended Article 332 of the Indian Constitution and provided the provision for the reservation of seats for the Scheduled Tribes in the States of Arunachal, Meghalaya, Mizoram and Nagaland.

58. The Constitution (Fifty-eighth Amendment) Act, 1987

The 58th Amendment has provided the people of India with an authoritative text of the Constitution in the Hindi version.

59. The Constitution (Fifty-ninth Amendment) Act, 1988

Though the 63rd Amendment of the Constitution was repealed, this amendment amended Articles 352, 356, 358 and 359.

60. The Constitution (Sixtieth Amendment) Act, 1988

The 60th Constitution of India amended clause (2) of Article 276.

61. The Constitution (Sixty-first Amendment) Act, 1988

Article 326 of the Constitution of India was amended under this amendment. And, consequently, the voting age was reduced from 21 to 18 years in India.

62. The Constitution (Sixty-second Amendment) Act, 1989

The 62nd amendment has amended Article 334 of the Indian Constitution and extended the reservation of seats for SCs and STs in the Central and State Legislative Assemblies from 40 years to 50 years.

63. The Constitution (Sixty-third Amendment) Act, 1989

The 63rd Amendment Act has repealed the provisions of the 59th Amendment Act.

64. The Constitution (Sixty-fourth Amendment) Act, 1990

This amendment has amended clauses (4) and (5) of Article 356 of the Indian Constitution.

65. The Constitution (Sixty-fifth Amendment) Act, 1990

Article 338 was amended under the 65th Amendment of the Indian Constitution. The Constitution (Sixty-Fifth Amendment) Act, 1990, established the National Commission for Scheduled Castes and Scheduled Tribes and set forth its statutory authority.

66. The Constitution (Sixty-sixth Amendment) Act, 1990

The 66th Amendment has amended the 9th Schedule and inserted 55 more Land Reform Acts of various States into it.

67. The Constitution (Sixty-seventh Amendment) Act, 1990

Clause (4) of Article 356 was amended under this Constitution, and the period for Presidential rule or State Emergency was increased for a further period of 6 months.

68. The Constitution (Sixty-eighth Amendment) Act, 1991

The amendment has again amended Article 356(4), and the Presidential rule was increased from the period of 4 years to 5 years.

69. The Constitution (Sixty-ninth Amendment) Act, 1991

Two new Articles were added to the Constitution of India in the year 1991 through the 69th Amendment Act. Those Articles were Article 239AA and Article 239AB.

70. The Constitution (Seventieth Amendment) Act, 1992

This amendment has amended Article 54 of the Indian Constitution and stated that the word ‘state’ in this Article will also include the National Capital Territory of Delhi and the Union Territory of Pondicherry.

71. The Constitution (Seventy-first Amendment) Act, 1992

By the 71st Amendment, three more languages, i.e. Manipura, Nepali and Konkani, were recognised as official languages of India, and this was accomplished by amending the 8th Schedule of the Constitution of India.

72. The Constitution (Seventy-second Amendment) Act, 1992

This amendment added a new clause (3B) to Article 332 of the Constitution and increased the number of seats for the Scheduled Tribes in Tripura’s Legislative Assembly.

73. The Constitution (Seventy-third Amendment) Act, 1992

This amendment inserted Part IX in the Constitution of India to deal with the Panchayati Raj System. The Part consists of sixteen new Articles and the 11th Schedule.

74. The Constitution (Seventy-fourth Amendment) Act, 1992

Part IXA, related to Municipalities, was added to the Indian Constitution by the 74th Amendment. The Part consists of eighteen new Articles and the 12th Schedule.

75. The Constitution (Seventy-fifth Amendment) Act, 1993

This amendment provided for the establishment of tribunals to regulate and manage tenancy issues. Subsequently, clause (h) was added to Article 323B of the Constitution of India.

76. The Constitution (Seventy-sixth Amendment) Act, 1994

The 9th Schedule of the Constitution was amended by the 76th Amendment Act, which raised the number of seats for backward classes in jobs and educational institutions.

77. The Constitution (Seventy-seventh Amendment) Act, 1995

This amendment added clause (4A) in Article 16 of the Constitution for the reservations of SCs and STs in government jobs.

78. The Constitution (Seventy-eighth Amendment) Act, 1995

The 78th Amendment amended the 9th Schedule of the Indian Constitution. It added 27 Land Reform Acts in certain states in it.

79. The Constitution (Seventy-ninth Amendment) Act, 1999

The reservation of seats for SCs, STs and Anglo-Indians in the Lok Sabha and the State Legislative Assemblies was increased from 50 to 60 years by amending Article 334 under the 79th Amendment Act.

80. The Constitution (Eightieth Amendment) Act, 2000

The 80th Amendment has amended Articles 269 and 270 and omitted Article 272 of the Indian Constitution.

81. The Constitution (Eighty-first Amendment) Act, 2000

This amendment inserted clause (4B) into Article 16 of the Constitution and ended the 50% ceiling for reservation of SCs, STs, and other backward classes. Parliament made a carry-forward rule of backlog vacancies for SCs and STs in India through this amendment.

82. The Constitution (Eighty-second Amendment) Act, 2000

The 82nd Amendment has amended Article 335 of the Indian Constitution and allowed the relaxation in qualifying marks and standards of evaluation in job reservation and promotion of SCs and STs.

83. The Constitution (Eighty-third Amendment) Act, 2000

By the 83rd Amendment, Article 243M of the Constitution of India was amended. It also added a new clause (3A), which exempted Arunachal Pradesh from the application of Article 243D of the Constitution.

84. The Constitution (Eighty-fourth Amendment) Act, 2001

Certain Articles of the Indian Constitution were amended under the 84th Amendment. These Articles are 55, 81, 82, 170, 330, and 332.

85. The Constitution (Eighty-fifth Amendment) Act, 2001

This amendment amended clause (4A) of Article 16 of the Constitution.

86. The Constitution (Eighty-sixth Amendment) Act, 2002

By the 86th Amendment, a new Article was added to the Indian Constitution. The newly added Article 21A provided the right to education for children aged 6 to 14 years. It also inserted a new Fundamental Duty into Part IV-A of the Constitution of India.

87. The Constitution (Eighty-seventh Amendment) Act, 2003

The 87th Amendment has amended Articles 81(3)(ii), 170(2), 170(3)(ii) and 230 of the Constitution of India.

88. The Constitution (Eighty-eighth Amendment) Act, 2003

This amendment added a new Article 268A and amended Article 270 of the Constitution of India. Through this amendment, the Union of India can levy service tax. Also, a new entry was inserted into the 7th Schedule through the 88th Amendment, i.e., entry 92C related to tax on service.

89. The Constitution (Eighty-ninth Amendment) Act, 2003

It amended Article 338 and inserted Article 338A into the Constitution. The Amendment provided for the separate establishment of National Commissions for the SCs and STs. It means a separate Commission for SCs and a separate Commission for STs.

90. The Constitution (Ninetieth Amendment) Act, 2003

This amendment has amended a new clause (6) to Article 332 of the Indian Constitution.

91. The Constitution (Ninety-first Amendment) Act, 2003

Two new clauses were inserted into Articles 75 and 164 by the 91st Amendment to the Constitution, i.e., clause (1A) and clause (1B). It omitted the 3rd paragraph of the 10th Schedule and added a new Article 361B in Part XIX of the Indian Constitution.

92. The Constitution (Ninety-second Amendment) Act, 2003

By the 71st Amendment, four new languages, i.e. Bodo, Dogri, Maithili and Santhali, were recognised as official languages of India, accomplished by amending the 8th Schedule of the Constitution of India.

93. The Constitution (Ninety-third Amendment) Act, 2005

Clause (5) was added to Article 15 of the Constitution by this amendment. Article 15 was amended to facilitate the establishment of a reservation (27%) for members of the Other Backward Class (OBC) in both public and private educational institutions.

94. The Constitution (Ninety-fourth Amendment) Act, 2006

This amendment has amended Article 164(1) and substituted the word ‘Bihar’ with the words ‘Chattisgarh and Jharkhand’.

95. The Constitution (Ninety-fifth Amendment) Act, 2009

The reservation of seats for SCs, STs and Anglo-Indians in the Lok Sabha and the State Legislative Assemblies was increased from 60 to 70 years by amending Article 334 under the 95th Amendment Act.

96. The Constitution (Ninety-sixth Amendment) Act, 2011

This amendment has amended the 8th Schedule of the Constitution and substituted the word ‘Oriya’ with ‘Odiya’.

97. The Constitution (Ninety-seventh Amendment) Act, 2011

It inserted Article 43B as a Directive Principle of State Policy. It amended Article 19(1)(c) and also added Part IX-B with 13 Articles in it. The amendment gave constitutional status to cooperative societies.

98. The Constitution (Ninety-eighth Amendment) Act, 2012

The 98th Amendment Act has added a new Article 371J to the Constitution of India.

99. The Constitution (Ninety-ninth Amendment) Act, 2014

It amended Articles 124(2), 127(1), 128, 217(1), 222(1), 224, 224A and 231. It also inserted Articles 124A, 124B and 124C into the Indian Constitution. Further, it omitted Article 231(2)(a) of the Constitution.

100. The Constitution (One-Hundredth Amendment) Act, 2015

The 100th Amendment Act amended the 1st Schedule of the Indian Constitution. Consequently, Bangladesh has acquired certain territories of India.

101. The Constitution (One Hundred and First Amendment) Act, 2016

The 101st Amendment Act added Articles 246A, 269A, 270(1A), 270(1B) and 279A to the Indian Constitution. GST was imposed in India by this amendment. It further omitted Articles 268A and 286(3) of the Constitution.

It also amended Articles 248(1), 249(1), 250(1), 268(1), 269(1), 270(1), 271, 286(2) and 368(2) of the Indian Constitution. This amendment also amended the 8th Schedule and the 7th Schedule of the Constitution.

102. The Constitution (One Hundred and Second Amendment) Act, 2018

The 102nd Amendment Act has amended Article 366 and added Articles 338B and 342A to the Constitution of India. The National Commission for Backward Classes acquired constitutional status through this amendment.

103. The Constitution (One Hundred and Third Amendment) Act, 2019

The 103rd Amendment Act added clause 6 in Articles 15 and 16, respectively. To the economically weaker sections (EWS) who are not already a reserved category under the SC, ST, and socially and economically backward classes, the amendment offers a 10% reservation in government jobs and colleges.

104. The Constitution (One Hundred and Fourth Amendment) Act, 2019

The 104th Amendment has extended the period of reservation of seats for Scheduled Castes and Scheduled Tribes in the Lok Sabha and state assemblies from 70 to 80 years, thus keeping it intact for the next 10 years.

However, this amendment did not extend (and thus removed) the Indian President’s power to nominate 2 members of the Anglo-Indian community to the Lok Sabha and State Legislative Assemblies.

Read Article 334 to understand more.

105. The Constitution (One Hundred and Fifth Amendment) Act, 2021

Article 342A of the Constitution is amended by the 105th Constitutional Amendment Act. It restored the President’s power to designate the socially and educationally disadvantaged classes in the Centre List of the Central Government.

106. The Constitution (One Hundred and Sixth Amendment) Act, 2023

The 106th Indian Constitutional Amendment Act’s motto is to allocate 33 per cent of seats in the directly elected Lok Sabha and state legislative assemblies for women. It received the assent of the President of India, Smt Droupadi Murmu, on 28 September 2023.

The provisions of this new amendment will come into effect when the central government notifies about it.

You can read the full and official 106th Amendment Act PDF here.

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All 106 Amendments of the Indian Constitution Briefly Explained
Subhashini Parihar

A share is a unit of capital representing the ownership connection between the company and the shareholder. It is often known as stocks or equity. The amount of shares a person owns defines the ownership percentage of that person in the company. The most common types of shares are preferred shares and equity shares.

Further, share capital is the total amount of funds a company raises by issuance of shares. It serves as the financial backbone of a company.

There are five types of share capital. This article discusses these types in brief.

Types of Share Capital

The five types of share capital are:

Here’s more about all of these.

Authorised Share Capital

The first type of share capital is the authorised share capital. Authorised share capital is the maximum number of shares a firm can issue. Memorandum of Association limits it to a certain amount.

While a company’s constitutional documents may specify a particular amount of authorised share capital, it is not required to be issued immediately. The corporation can issue shares gradually, up to the authorised limit.

Companies can typically alter their authorised share capital by following the given process:

• Firstly, the company has to get the shareholder’s approval through a special resolution.
• Secondly, it has to make changes in the company’s documents to reflect the changes in authorised share capital.
• Lastly, it has to file the required documents with the Registrar of the Companies.

Public companies raise authorised share capital through an initial public offering (IPO) or follow-on public offering (FPO). In contrast, private companies raise authorised share capital through private placement or rights issues.

Related: Allotment of Shares Under Company Law in India

Issued Share Capital

The second type of share capital is issued share capital. Issued share capitals are the authorised shares a company has actually sold or issued to its shareholders. Shareholders who own issued shares have specific rights, including voting at shareholder meetings and receiving dividends.

Issued shares may either be fully paid up or partially paid up. Fully paid-up shares are those for which shareholders have paid the entire value of the shares. Partially paid-up shares are those for which shareholders have paid a part of the whole value, with the balance to be paid anytime later or at the company’s request.

For example, a company has an authorised share capital of 10000 and decides to issue 3000 shares. The investors buy these shares, so the shares sold by the company represent the issued share capital.

Unissued Share Capital

The third type of share capital is unissued share capital. Unissued share capital is those authorised share capital that has not been sold or distributed to shareholders. Simply put, these shares are part of the total share capital the firm is legally permitted to issue but have not been distributed to its investors.

Unissued shares indicate the possibility of future equity funding for the company. The company can issue these shares later to raise extra capital for business expansion, investment possibilities, or other objectives if needed.

For example, a company has an authorised share capital of 10000 shares but has issued only 3000 shares. The remaining 7000 shares represent the unissued share capital.

Subscribed Share Capital

The fourth type of share capital is subscribed share capital, which investors have formally agreed to or promised to buy in the future. Subscribed share capital is typically subscribed as part of an initial public offering (IPO). The company profits from additional funds due to the shareholder’s commitment, similar to giving it a financial boost.

For example, a company sells 10000 shares to expand its operations. Every share is worth Rs 300. Investors expressed their interest and promised to purchase the shares but still needed to make payments. Thus, the subscribed capital is Rs 30 lakhs or 3 million (10000 shares x Rs 300). The example indicates that once investors pay for the promised shares, the company should soon receive Rs 30 lakhs or 3 million.

Paid-Up Share Capital

The paid-up share capital is the last type discussed in this article. It is the portion of issued share capital for which shareholders have paid the whole amount or value. It simply denotes the total sum of money that the company has received from its shareholders for the shares that have been issued.

For example, a company has issued 10000 shares at Rs 100 each. The investors bought all the shares and paid Rs 100 each. The paid-up capital would be 10 lakhs or 1 million.

Five Types of Share Capital in India
Subhashini Parihar