Under Section 4 of the Income Tax Act 1961, income tax is CHARGED for any 'PREVIOUS YEAR' on:
Answer & Solution
Correct answer: A.
1. Section 4(1) Income Tax Act 1961: 'Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person.'
2. KEY TERMS: 'assessment year' (12 months starting from 1 April), 'previous year' (12 months preceding the assessment year).
3. Charging section is foundational — establishes the basis of tax liability.
4. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 4_
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