Finance Act 1986 Revamps Tax Laws: Abolishes Surcharge, Simplifies Capital Gains, Introduces Investment Schemes, Ends Certain Concessions.

The Finance Act of 1986 introduced significant amendments to the Income-tax Act, Wealth-tax Act, Gift-tax Act, and Companies (Profits) Surtax Act. Key changes include the abolition of surcharge on companies, amendments to tax rates and exemptions, and the introduction of new sections and chapters. Notable amendments involve the simplification of capital gains taxation, modifications to house rent allowance exemptions, and the introduction of an investment deposit account scheme. The Act also established the Central Government's right to purchase immovable properties in certain cases and discontinued certain tax concessions. Additionally, the Act aimed to enhance resource mobilization for the public sector and streamline tax procedures.