Since 2010, every year, 24 July has been observed in India as National Income Tax Day. On 24 July 1860, Sir James Wilson imposed Income tax for the first time in the country. This day is observed to highlight the importance of citizens paying taxes on time and the contribution it makes to the nation's development.
To mark the 150th anniversary of the imposition of income tax in India in 2010, the Income Tax Department of the Union Ministry of Finance decided to observe 24 July as income tax day.
The first National Income Tax Day was celebrated on 24 July 2010.
The Income Tax Act of 1922 laid a proper framework for the direct tax administration in the country. After Independence, the Income Tax Act of 1961 consolidated and replaced the 1922 Act.
The Income Tax Act 1961 was applicable all over India except Sikkim and Jammu and Kashmir. In 1989, the provisions of the Income Tax Act were extended to Sikkim.
The provision of the Income Tax Act 1961 was made applicable to the Union Territory of Jammu and Kashmir and to the Union Territory of Ladakh in 2019.
At present, it applies to all parts of India.
In 1924, the Central Board of Revenue was constituted as a statutory body with functional responsibilities for administering the Income Tax Act.
Later, the government of India in 1963 bifurcated the Central Board of Revenue and a separate Central Board of Direct Taxes (CBDT) was constituted under the Department of Revenue, Union Ministry of Finance.
Union Finance Minister : Nirmala Sitharaman
Chairman CBDT: Ravi Agarwal