Income-tax for an AY is charged at rates prescribed by:
ACentral Government rules
BThe CBDT by notification
CThe Income-tax Act 1961
DThe Annual Finance Act
Answer & Solution
Correct answer: D. The Annual Finance Act
1. Section 4 charges tax at the rate or rates prescribed by the Central Act (Finance Act) for the assessment year.
2. The Finance Act passed by Parliament prescribes rates each year.
3. The Act and Rules contain substantive provisions; rates come through the Finance Act.
_Source: ICAI BoS CA Final Paper 7, Ch 1 "Basic Concepts"_
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