The history and significance of income tax was detailed at the Income-Tax Day celebration organised by the office of the Chief Commissioner of Income Tax here recently.
Addressing top tax-payers of Tiruchi and all the 13 mofussil stations under the Tiruchi region, that includes Salem, Hosur, Namakkal, Thanjavur and Kumbakonam, senior officials sought to drive home the point that the department considered tax payers as partners in nation-building. The present income tax system was based on the ancient tax system which was based on the theory of maximum social welfare, they explained.
Delving further into the introduction of tax in India for the first time in 1860, the officials said it was introduced by Sir James Wilson in order to offset losses sustained by the government on account of the Military Mutiny of 1857.
In 1918, a new Income Tax Act was passed and again it was replaced by another Act in 1922, which remained in force up to the assessment year 1961-62 with numerous amendments.
In consultation with the Ministry of Law, the Income Tax Act, 1961, was finally passed and brought into force with effect from April 1, 1962. Since then, several amendments of far-reaching nature had been made in the Income Tax Act by the Union Budget every year, the officials said.
Chief Commissioner of Income Tax Rajiv Vijay Nabar presided over the event. Cultural programmes and planting of saplings were among the host of activities organised on the occasion.
Commissioner of Police A. Amalraj, Director of Tiruchi Airport K. Gunasekaran and Divisional Railway Manager Ajay Kumar constituted the special invitees. Chartered accountants also took part.
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