Question

Income Tax Act was enacted in

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

Hint:

For major statutes, it is essential to remember their full name, which almost always includes the year of enactment. The "Income Tax Act, 1961" is a fundamental piece of legislation for any law or commerce student to know.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks for the year of enactment of the current Income Tax Act in India.

Step 2: Detailed Explanation:
The primary legislation governing the levy of income tax in India is the Income Tax Act, 1961. This Act was enacted by the Parliament of India in 1961 and it came into force on 1st April 1962. It replaced the Indian Income-tax Act, 1922.

Step 3: Final Answer:
The Income Tax Act was enacted in the year 1961.