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Income tax was introduced in India for the first time by the British in a specific year, prompted by financial difficulties created by the events of 1857. In which year did this first introduction take place?
Answer & Solution
Correct answer: A.
1. The financial fall-out of 1857 forced the British to look for a new revenue head.
2. The Income Tax Act, 1860 was the first such legislation in India.
3. It was passed for five years and lapsed in 1865.
4. The 1886, 1918 and 1922 Acts were later legislations, not the first.
_Source: ICSI CS Executive Paper 4 (Tax Laws) — Lesson 1: Direct Taxes — At a Glance, pp. 10-22._
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