Accounting · Income Tax and Deferred Tax
Consider the following statements: Statement 1: Income Tax in India is a direct tax levied by the Central Government on the total income of an individual or entity earned during a previous year, following a progressive tax rate system. Statement 2: The Tax Deducted at Source (TDS) mechanism is designed to collect tax at the source of income, thereby ensuring a steady flow of revenue and preventing tax evasion. Statement 3: Deferred Tax arises solely due to permanent differences between accounting income and taxable income. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1None of the statements are correct
- 2All statements are correct
- 3Only Statement 3 is correct
- 4Only Statement 1 and Statement 2 are correct✓
Correct answer
Only Statement 1 and Statement 2 are correct
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