163rd anniversary of Income Tax Day observed by CBDT

Tags: Economics/Business Important Days

The 163rd anniversary of Income Tax Day was celebrated across India on 24 July by the Central Board of Direct Taxes (CBDT) and all its regional offices.

Important facts 

• Union Finance and Corporate Affairs Minister Nirmala Sitharaman said that the reforms introduced by the government in recent years have ensured a trust-based tax system.

• Taxpayers have also reaffirmed the faith-based approach, as evidenced by the trend towards better tax collection and increase in the number of income tax returns filed.

• Sitharaman lauded the Income Tax Department for successfully implementing the policy reforms.

• He lauded the Income Tax Department for achieving the highest ever revenue collection of over Rs 14 lakh crore in the last financial year.

• On this occasion the field formations held a number of events and activities.

 About Income Tax Day

• This day has been celebrated in India since 2010.

• In 2010, the Income Tax Department decided to observe 24 July as an annual festival day, marking 150 years of Income Tax.

• Income tax was first levied as a tax on July 24, 1860.

• Therefore, July 24 holds a lot of importance for the Income Tax Department.

• It was introduced by Sir James Wilson in 1857 to compensate for the loss suffered by the British Government during the First War of Independence.

Significance of the day

• It is celebrated to appreciate the Income Tax Department for its immense service to the nation.

• The agency administers direct taxes and serves as a source of revenue for the government.

• It is also an effective tool for achieving socio-economic objectives.

• The Income Tax Department adapts to sudden changes in the economy and enjoys a healthy growth in tax collection.

About Central Board of Direct Taxes (CBDT)

• CBDT i.e. Central Board of Direct Taxes is a part of the Department of Revenue in the Ministry of Finance.

• CBDT is empowered by the Board of Revenue Act 1963.

• CBDT provides necessary inputs for direct tax policies and schemes in India. Also it is responsible for the administration of direct tax laws through the Income Tax Department.

• All matters relating to direct taxes in India were entrusted to the Central Board of Direct Taxes with effect from 1 January 1964.

• The CBDT is headed by the Chairman and can have six members, who are of the rank of Special Secretary.

• It is the administrative body for the Income Tax Department.