National Income Tax Day is observed in India every year on July 24. This date was chosen because income tax was first levied as a duty in India in 1860 on this very day. In 2010, the I-T department for the first time decided to celebrate this day to mark 150 years of levy of the tax. This year, it will be the 162nd occasion of National Income Tax Day.

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History

The first income tax was imposed in India in 1860 by Sir James Wilson, just three years after the First War of Independence in 1857. The tax was meant to compensate the British government, which took over the administration of the Indian holdings of the British East India Company after the revolt.

When the Income Tax Act 1922 was introduced it laid a proper framework for the direct tax administration in the country. In 1924, the Central Board of Revenue was constituted as a statutory body with functional responsibilities for administering the Income Tax Act. In 1963, the Central Board of Revenue was bifurcated, and a separate Board for Direct Taxes known as Central Board of Direct Taxes (CBDT) was constituted under the Central Board of Revenue Act, 1963.

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There have been significant changes to the way India collects Income Tax over the years. So much so that except for the bare outlines, the traces of the IT Act, 1922, can hardly be seen in the 1961 Act as it stands amended to date.

Significance

National Income Tax Day is celebrated to highlight the importance of Income Tax for the nation. Through activities and knowledge building, citizens are informed how paying timely taxes is an ethical duty that is essential for nation-building.

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Celebration

The Income Tax Day is preceded by a week of varied activities that are conducted by the regional offices of the various tax departments across different areas of the country. Over the years, the Income Tax Department has used this day to disseminate information about the importance of paying taxes on time. The I-T department also releases commemorative stamps and coins on July 24.

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(Edited by : Sudarsanan Mani)

First Published:Jul 24, 2022 10:46 AM IST