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The Income Tax Act, 1961 replaced an earlier statute that had been in force for a long stretch. From what date did the 1961 Act come into force, and how long had the predecessor Act been in operation?
Answer & Solution
Correct answer: B.
1. The lesson dates the 1961 Act's commencement to 1 April 1962.
2. It replaced the Indian Income Tax Act, 1922.
3. The 1922 Act had remained in operation for 40 years.
4. So the correct pair is 1 April 1962 commencement and a 40-year predecessor.
_Source: ICSI CS Executive Paper 4 (Tax Laws) — Lesson 1: Direct Taxes — At a Glance, pp. 10-22._
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