After the Hindu kings, the successive Muslim kingdoms levied taxes in different names, but, by and large the incidence of tax remained the same. Then followed the British Period. In 1765, Shah Lam II unable to control his tax collectors in Bengal, Briar and Arioso, granted the power to collect the taxes (Danni) to East India Co for RSI 26 lacks per annum. Thus began the British period of taxation in India. The company was only to collect land Revenue as in earlier years. But it extended its tax net to opium, salt (Excise duties) and customs duties, baker, postal charges and court-fee.

The word “Income-tax” entered India in 1860. After the Seeps Mutiny in 1857, James Wilson, the First Finance Member, to make good the loss caused by the revolt, levied Income-tax on British model to last only for five years. The Act of 1860 lapsed in 1865 but was again re -imposed in 1869 and 1877. Agricultural income was exempted from taxation for the first time in 1877 and till today, it is enjoying the non -disability status. Income-tax in India was put on a permanent footing in 1866. There was no obligation to file the return, except when there was income from a company. The

District collector was the Assessing officer and the Titleholders acted as Inspectors who played a major role in finalizing the assessments. The First World War of 1914 necessitated many changes in the Indian tax system. The Act of 1918 suffered many infringements in implementation. The Gobo. Appointed committees in each province to suggest recommendations. The result was the 1922 Act, according to which Income-tax was centralized for the first time. This Act continued till 1961 when a new act of 1961 was enacted. NOW The Finance Minister appointed an expert committee in 2016 to suggest a simpler law to replace the 1961 Act.

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After deliberations, debates and discussions, the Direct Taxes Code (D T C) was introduced in the Parliament on 30th Gag 2010 with a view to make it effective from 1st Par 2012. But the Bill fell into bad weather and with the change of the portfolio of the Finance Minister, the successor did not pursue it. After Mr. P Academician took over as the FM once again, got the code re-drafted and the revised ETC was released for public comments and welcomed suggestions from Trade and Industrial bodies and also from professional dies like Institute of Chartered Accountants etc.


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