UPSC Prelims Practice Questions — New I-T Act to take effect from April 1

Q1. With reference to the Income-tax Act, 2025 vis-à-vis the Income-tax Act, 1961, consider the following statements: Which of the statements given above is/are correct?

  1. The Income-tax Act, 2025 has fewer sections than the Income-tax Act, 1961.
  2. The Income-tax Act, 2025 has fewer schedules than the Income-tax Act, 1961.
  3. The Income-tax Act, 2025 alters the personal income tax rates and regimes that existed under the Income-tax Act, 1961.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. In the context of direct tax legislation in India, 'Act No. 30 of 2025' refers to which one of the following?

  • A. The Finance Act, 2025
  • B. The Income-tax Act, 2025
  • C. The Goods and Services Tax (Amendment) Act, 2025
  • D. The Direct Tax Code Act, 2025

Q3. Who chaired the Select Committee of the Lok Sabha constituted to examine the Income-tax Bill, 2025?

  • A. Bhartruhari Mahtab
  • B. Baijayant Panda
  • C. Jayant Sinha
  • D. Nishikant Dubey

Q4. With reference to the Income-tax Act, 2025, consider the following statements: Which of the statements given above is/are correct?

  1. It contains 536 sections.
  2. It is organised into 23 chapters.
  3. It contains 16 schedules.
  4. It came into force on 1 April 2025.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q5. With reference to the Income-tax Act, 2025, consider the following statements: Which of the statements given above is/are NOT correct?

  1. It received Presidential assent on 21 August 2025.
  2. It replaces the Income-tax Act, 1961.
  3. It alters the personal income tax slabs prevailing under the new tax regime.
  4. The Income-tax Rules, 2026 were notified by the Central Board of Direct Taxes on 20 March 2026.
  • A. 3 only
  • B. 1 and 3 only
  • C. 2 and 4 only
  • D. 1, 2 and 4 only