The Income Tax department marks July 24 as Income Tax Day or ‘Aaykar Diwas’ every year to celebrate the inception of income tax in India. On this day in 1860, Sir James Wilson introduced the income tax to offset the losses incurred during the first war of Independence. This year marks the 164th anniversary of Income Tax Day. It is a significant occasion to remember the importance of income tax in nation-building and honoring the contributions of taxpayers towards the development of the country.
On the occasion of the 164th Income Tax Day celebrations, Finance Minister Nirmala Sitharaman will be part of the festivities at Plenary Hall, Vigyan Bhawan, New Delhi on Monday.
The program will commence at 6:00 pm today. Income Tax Day is celebrated every year on 24th July to raise awareness about the significance of taxes and inspire more individuals to contribute to the development of the nation by paying their taxes. It serves as a reminder of the collective responsibility to support the growth and progress of the country through tax contributions.
History of Income Tax Day
The first Income Tax Act in India was passed in 1860 by the British government. The act was introduced by Sir James Wilson, who was the then Finance Minister of British India.
- The Income Tax Act of 1860 imposed a tax on the income of individuals and companies. The tax rates were progressive, meaning that the higher your income, the higher the tax you paid.
- The Income Tax Act of 1860 was amended several times over the years.
- The most significant amendment was in 1922 when the act was consolidated into a single document. The Income Tax Act of 1922 is the basis for the Income Tax Act of India, which is currently in force.
- In 1960, India celebrated the 100th anniversary of the Income Tax Act of 1860. The government issued a commemorative stamp in honor of the occasion.
- In 2007, the Indian government designated July 24 as Income Tax Day. The day is celebrated to commemorate the introduction of the Income Tax Act in India. It is also an opportunity to raise awareness about the importance of paying income tax.
Income Tax Day is an important day for the Indian economy. It is a day to celebrate the importance of paying income tax and to reaffirm our commitment to a fair and equitable tax system.
Significance of Income Tax Day
- To raise awareness about the importance of paying income tax: Income Tax Day is an opportunity to raise awareness about the importance of paying income tax and to educate taxpayers about their tax obligations.
- To promote compliance with tax laws: Income Tax Day is also an opportunity to promote compliance with tax laws. The Income Tax Department of India organizes various events and activities to mark the day, such as seminars, workshops, and public outreach programs. These events help to educate taxpayers about their tax obligations and encourage them to comply with the law.
- To celebrate the contributions of taxpayers: Income Tax Day is also a day to celebrate the contributions of taxpayers to the Indian economy. Taxpayers help to fund essential services such as healthcare, education, and infrastructure. By paying their taxes, they play an important role in building a strong and prosperous India.
About Income Tax Department
The Income Tax Department is a government department responsible for administering the Income Tax Act of 1961 in India. The department is headed by the Central Board of Direct Taxes (CBDT), which is a statutory body established under the Income Tax Act.
The Income Tax Department’s Responsibilities
- Collecting income tax from individuals and companies.
- Enforcing the Income Tax Act.
- Investigating tax evasion.
- Providing taxpayer services.
- Promoting tax compliance.
The Income Tax Department has a network of offices all over India. These offices are responsible for collecting taxes, enforcing the law, and providing taxpayer services.
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What are the objectives of Income Tax Day?
Raise awareness about the importance of paying income tax.
Educate taxpayers about their tax obligations.
Promote compliance with tax laws.
Collect revenue for the government.