National Income Tax Day is celebrated on 24th July. The day marks a significant milestone in India’s fiscal history. This day commemorates the introduction of income tax in India by Sir James Wilson in 1860.
Later, the department decided to celebrate this day for the first time in 2010 to mark 150 years of levy of the tax. This year, it will be the 165th occasion of National Income Tax Day.
In 1924, the Central Board of Revenue Act further strengthened this structure by constituting the Board as a statutory body responsible for administering the Income-tax Act.
This period saw the appointment of Commissioners of Income-tax for each province, supported by Assistant Commissioners and Income-tax Officers.
In 2009, the Centralized Processing Centre (CPC) was set up in Bengaluru to handle the bulk processing of e-filed and paper returns, operating efficiently in a jurisdiction-free manner.
What is Income Tax?
Income tax is a government levy on the income earned by individuals and businesses during a financial year. “Income” encompasses various sources, defined broadly under Section 2(24) of the Income Tax Act.
Income from Salary: This includes all payments from an employer to an employee, such as basic pay, allowances, commissions, and retirement benefits. Income from House Property: Rental income from residential or commercial properties is taxable.
Income from Business or Profession: Profits from business or professional activities are taxable after deducting expenses.
Income from Capital Gains: Profits from selling capital assets like property or jewellery are taxable. These gains can be long-term or short-term.
