Question

Income Tax Act was enacted in

• A. 1951
• B. 1961
• C. 1971
• D. None of the above

Hint:

The Income Tax Act, 1961, is the primary statute that governs the income tax system in India.

Answer 1

The Correct Option is B

Step 1: Understanding the Enactment of the Income Tax Act.
The Income Tax Act, 1961, is the governing legislation for income tax in India. It was enacted by the Parliament of India to consolidate and amend the law relating to income tax.

Step 2: Explanation of Other Options.
- (a) The Income Tax Act was not enacted in 1951. - (c) 1971 is incorrect as the Act was already in force by then. - (d) None of the above is not correct because the correct year is 1961.

Step 3: Conclusion.
The correct answer is (b), the Income Tax Act was enacted in 1961.