Income Tax Was Introduced On This Day: Celebrating India's Fiscal Milestone On 24th July
NDTV
This day marks a significant milestone in India's fiscal history, laying the groundwork for the country's tax system.
Income Tax Day, observed on July 24, honours the establishment of income tax by Sir James Wilson in 1860, a significant turning point in India's fiscal history. This first tax was intended to tax income from different sources, as stated in the Income Tax Act's Section 2(24).
The nation's tax system was genuinely revolutionised by the Income-tax Act of 1922, despite the fact that the 1860 implementation laid the foundation. This extensive Act created a methodical administrative framework that still serves as the foundation for modern tax administration in India, in addition to formalising the organisation of income tax authorities.
As per a release by the government of India, in 1924, the Central Board of Revenue Act further strengthened this structure by constituting the Board as a statutory body responsible for administering the Income-tax Act. This period saw the appointment of Commissioners of Income Tax for each province, supported by Assistant Commissioners and Income Tax Officers.
