1. Introduction: The Bedrock of Indian Revenue Jurisprudence

The Income-Tax Act, 1961, as amended by the Finance Act, 2025, constitutes the definitive statutory architecture for direct taxation in the Republic of India. Enacted in the twelfth year of the Republic to consolidate and amend the laws relating to income-tax and super-tax, the Act asserts jurisdictional sovereignty over the whole of India, having formally commenced its regulatory tenure on April 1, 1962. Within this framework, the Act mandates a sophisticated relationship between the State and the "assessee," serving as the primary instrument for fiscal governance.

Beyond its utility as a revenue-generating mechanism, the Act functions as the essential taxonomic foundation for Indian commerce. It provides the statutory definitions that distinguish economic entities—ranging from the Individual and the Hindu Undivided Family (HUF) to complex corporate structures—and categorizes the very nature of wealth. To contemplate the "Great Fiscal Void"—the total abolition of this Act—is to envision the dissolution of the legal definitions that prevent economic anarchy. To understand the consequences of such a void, one must first evaluate the regulatory fabric that the Act currently maintains.

2. The Regulatory Fabric: What the Act Defines and Controls

The Income-Tax Act provides the "dictionary" for Indian financial life. In its absence, the legal clarity required for corporate governance and individual liability would evaporate, leaving the state without the means to categorize or control the movement of capital.

Key Differentiators of Strategic Entities