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Among the historic Indian income tax statutes, one Act inserted, for the first time, specific provisions relating to business deductions for the purpose of computing net income. Which Act was that?
Answer & Solution
Correct answer: A.
1. The 1918 Act brought casual or non-recurring receipts of business and professions within charge.
2. It also inserted, for the first time, specific provisions for business deductions.
3. The 1860 Act was the first income tax statute but did not include such provisions.
4. The 1886 and 1922 Acts addressed other structural matters.
_Source: ICSI CS Executive Paper 4 (Tax Laws) — Lesson 1: Direct Taxes — At a Glance, pp. 10-22._
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