Multiple choice Under how many heads does the Income Tax Act of 1961 impose tax on income? Two Four Five Six Reveal answer Fill a bubble to check yourself C Correct answer Explanation The Income Tax Act of 1961 imposes tax on income under the following five heads:Income from house and property Income from business and profession Income from salaries Income in the form of capital gains Income from other sources The Income Tax Act of 1961 has been in the news because it is going to be replaced by the Direct Tax Code.