Producer:  Priyanka Das Editor: Sujata Singh

Income Tax Day: History and Significance

July 24 was officially adopted as the Income Tax Day or Aaykar Diwas to commemorate 150 years of this tax in India.

We as citizens can help our country prosper by paying our taxes on time. The Income Tax department, headquartered in New Delhi, is in charge of direct tax collection for the Government of India.

Sir James Wilson implemented Income Tax in India on July 24, 1860.

The scheme was introduced to recompense the British regime for losses sustained during the Revolt of 1857. The practice lasted for years before an official structure or department for coordinating tax collection was established in 1922.

Furthermore, the Income-tax Act of 1922 introduced a distinct nomenclature for the several Income-tax administrations.

Later, the act was amended in 1939, and two major structural modifications were made. The appellate functions were separated from administrative functions as well as a central charge was introduced in Mumbai.

In 2010, the Finance Ministry declared July 24 as Income Tax Day to commemorate the establishment of this levy.

Several activities are carried out by regional tax offices in the week preceding the event.

Across the country, outreach programmes are undertaken to promote tax payment as a value norm and to inform potential taxpayers that paying taxes is an ethical duty of people.