UPSC Prelims Practice Questions — Tax laws need teeth to deal with bigwig evaders: SC

Q1. The Income-tax Act, 2025 — which replaces the Income-tax Act, 1961 with effect from 1 April 2026 — was enacted as which numbered Central Act of 2025?

  • A. Act No. 12 of 2025
  • B. Act No. 24 of 2025
  • C. Act No. 30 of 2025
  • D. Act No. 45 of 2025

Q2. With reference to the Income-tax Act, 2025 vis-à-vis the Income-tax Act, 1961, consider the following statements: 1. Section 247 of the Income-tax Act, 2025 corresponds to Section 132 of the Income-tax Act, 1961 dealing with search and seizure. 2. Unlike the 1961 Act, the 2025 Act explicitly empowers authorised officers to access a 'virtual digital space', including by overriding access codes where unavailable. 3. The Income-tax Act, 2025 was brought into force on the very day on which it received the assent of the President. Which of the statements given above is/are correct?

  1. Section 247 of the Income-tax Act, 2025 corresponds to Section 132 of the Income-tax Act, 1961 dealing with search and seizure.
  2. Unlike the 1961 Act, the 2025 Act explicitly empowers authorised officers to access a 'virtual digital space', including by overriding access codes where unavailable.
  3. The Income-tax Act, 2025 was brought into force on the very day on which it received the assent of the President.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. The challenge to Sections 247 and 249 of the Income-tax Act, 2025 invoked the right to informational privacy. Which of the following is the lead Supreme Court judgment that established the Right to Privacy as a fundamental right under Article 21?

  • A. Maneka Gandhi v. Union of India (1978)
  • B. ADM Jabalpur v. Shivkant Shukla (1976)
  • C. M.P. Sharma v. Satish Chandra (1954)
  • D. K.S. Puttaswamy (Retd.) v. Union of India (2017)

Q4. Which of the following is the apex statutory body that administers the Income-tax Act, 2025 and notified the Income-tax Rules, 2026 to operationalise the new Act?

  • A. Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue
  • B. Central Board of Direct Taxes (CBDT), under the Department of Revenue, Ministry of Finance
  • C. Financial Intelligence Unit – India (FIU-IND), under the Department of Revenue
  • D. Directorate General of Income Tax (Investigation), exclusively under the Ministry of Home Affairs