The Income Tax department observes July 24 every year as Income Tax Day or ‘Aaykar Diwas’, to commemorate the introduction of provision of income tax in the country. On the same day in the year 1860, Income tax was originally introduced in India by Sir James Wilson, to compensate for the losses incurred during the first war of independence. This is the 163rd anniversary of Income Tax Day.
On Income Tax Day, the CBDT organizes various events and activities to raise awareness about income tax and its importance. These events include seminars, workshops, and outreach programs. The CBDT also releases a commemorative postage stamp on Income Tax Day. Income Tax Day is an important day for the Indian government and for taxpayers. It is a day to celebrate the importance of income tax and to reaffirm our commitment to paying our taxes honestly and on time.
Income Tax Day celebrations
In the week preceding the occasion, several activities are undertaken by regional offices of the tax department. Outreach programmes are held across the country to promote tax payment as a value norm, and to sensitise potential taxpayers that paying taxes is an ethical duty of the citizens.
History of Income Tax Day
On July 24, 1860, Sir James Wilson introduced income tax for the first time in India. Wilson did this to compensate for the losses suffered by the British regime during the first war of independence in 1857. ‘Aaykar Diwas’ was celebrated for the first time on July 24, 2010, to mark 150 years of income tax in India.
“Since income tax was first levied as a duty in the year 1860 and the authority to levy that duty came into force on July 24 of that year, it is proposed to celebrate this day as Income Tax Investiture Day,” a finance ministry official said in July 2010.
Income Tax department
Headquartered in New Delhi, the Income Tax department is responsible for direct tax collection for the Government of India. It functions under the Department of Revenue in the Ministry of finance, and is headed by an apex body called the Central Board of Direct Taxes (CBDT).
About the Central Board of Direct Taxes
The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex-officio capacity also function as a Division of the Ministry dealing with matters relating to levy and collection of direct taxes. Historical Background of C.B.D.T.
Important takeaways for all competitive exams:
- Central Board of Direct Taxes chairman: Anita Kapur;
- Central Board of Direct Taxes Established: 1924;
- Central Board of Direct Taxes Headquarters: New Delhi.