Celebrating India’s Fiscal Milestone: Income Tax Introduced On July 24

Income Tax Day, observed on July 24, commemorates the introduction of income tax by Sir James Wilson in 1860, marking a significant moment in India’s fiscal history.

While the 1860 implementation laid the groundwork, the Income-tax Act of 1922 revolutionized the system by establishing a structured administrative framework for modern tax administration.

The Central Board of Revenue Act of 1924 further strengthened this framework by creating a statutory board and appointing tax commissioners across provinces.

Additional advancements include the establishment of the IRS Staff College in 1957, the recruitment of Group A officers in 1946, the introduction of computerization in 1981, and the creation of the Central Processing Centre in Bengaluru in 2009.

Income Tax Day celebrates these milestones and ongoing efforts to modernize India’s tax system. Key Milestones in the Indian Income Tax System:
* 1860: Introduction of Income Tax by Sir James Wilson
* 1922: Establishment of the comprehensive Income-tax Act
* 1924: Constitution of the Central Board of Revenue Act
* 1946: Recruitment of Group A officers
* 1957: Establishment of the IRS (Direct Taxes) Staff College, later renamed National Academy of Direct Taxes
* 1981: Initiation of computerization in the Income-tax Department
* 2009: Establishment of the Centralized Processing Centre (CPC) in Bengaluru
* 2014: Launch of the new national website for the Income Tax Department
* 2020: Introduction of the “Vivad se Vishwas” scheme to reduce litigation and boost government revenues
* 2021: Launch of the new e-filing portal