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The current law of income tax in India is contained in a specific principal statute, supported by rules of the same family. Which Act is the principal direct tax statute currently in force?
Answer & Solution
Correct answer: B.
1. The currently operative income tax law in India is the Income Tax Act, 1961.
2. The Act came into force on 1 April 1962.
3. It replaced the Indian Income Tax Act, 1922 which had run for 40 years.
4. The Direct Taxes Code Bill, 2010 was introduced to replace the 1961 Act but is not in force.
_Source: ICSI CS Executive Paper 4 (Tax Laws) — Lesson 1: Direct Taxes — At a Glance, pp. 10-22._
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