Income Tax Day 2024: Date, history, significance, quotes and more

India celebrates the National Income Tax Day, or Aaykar Divas, every year on July 24, marking the historical development of tax administration in the country

India celebrates the Income Tax Day, or Aaykar Divas, every year on July 24. This day commemorates the historical evolution of tax administration in India and the ongoing reforms that aim to enhance tax compliance and simplify the process for taxpayers.

On this day, Income tax was first levied as a duty in India in 1860. The department celebrated this day for the first time in 2010 marking 150 years of the introduction of Income tax in India. This year marks the 165th occasion of National Income Tax Day.

Income tax is a tax levied by the government on the income earned by individuals and businesses throughout the fiscal year. It encompasses different sources like income from salary, income from house property, income from business or profession, income from selling capital assets like property and jewellery or income from other sources like saving interest, family pension, gifts, lottery winnings, and investment returns. 

 

Income Tax Day: History

The history of National Income Tax Day dates back to 1860; it was first imposed by Sir James Wilson in 1860. The initial implementation laid the groundwork, it was the comprehensive Income Tax Act of 1992 that truly established a structured tax administration in the country. 

The Central Board of Revenue was constituted in 1924, which is a statutory body with functional responsibilities for administering the Income Tax Act. Group A officers were recruited in 1946, marking another important milestone, with initial training conducted in Calcutta and Bombay.

The Central Board of Revenue was divided in 1963. A separate Board for Direct Taxes which is known as the Central Board of Direct Taxes (CBDT), was established under the Central Board of Revenue Act, of 1963.

Income Tax Day: Significance

This day plays a significant role in spreading information about paying taxes on time. On the occasion of National Income Tax Day, the IT department releases commemorative coins and stamps. The department also organises activities and knowledge building by informing citizens about how paying timely taxes is an ethical duty, and crucial for nation-building. 

About Income Tax Department

The headquarters of the Income Tax department is based in New Delhi and it is responsible for direct tax collection for the Indian government. The IT department functions under the Department of Revenue in the Ministry of Finance which is headed by the Central Board of Direct Taxes (CBDT).

Income Tax Day 2024: 20 Best Quotes

1. "Taxes are the price we pay for a civilised society." - Oliver Wendell Holmes Jr.
2. "In this world, nothing can be said to be certain, except death and taxes." - Benjamin Franklin
3. "Paying taxes is not a punishment. It's a responsibility." - Unknown
4. "The hardest thing in the world to understand is the income tax." - Albert Einstein
5. "Taxes are the lifeblood of government and the soul of democracy." - Frank Herbert
6. "A fine is a tax for doing wrong. A tax is a fine for doing well." - Unknown
7. "Income tax has made more liars out of the American people than golf." - Will Rogers
8. "The income tax created more criminals than any other single act of government." - Barry Goldwater
9. "Taxation is the price which civilized communities pay for the opportunity of remaining civilized." - Albert Bushnell Hart
10. "No taxation without representation." - James Otis
11. "Taxes, after all, are dues that we pay for the privileges of membership in an organized society." - Franklin D. Roosevelt
12. "The best measure of a man's honesty isn't his income tax return. It's the zero adjust on his bathroom scale." - Arthur C. Clarke
13. "The avoidance of taxes is the only intellectual pursuit that carries any reward." - John Maynard Keynes
14. "The power of taxing people and their property is essential to the very existence of government." - James Madison
15. "Collecting more taxes than is absolutely necessary is legalized robbery." - Calvin Coolidge
16. "To tax and to please, no more than to love and to be wise, is not given to men." - Edmund Burke
17. "The income tax has made liars out of more Americans than golf." - Will Rogers
18. "Where there is an income tax, the just man will pay more and the unjust less on the same amount of income." - Plato
19. "An income tax form is like a laundry list - either way, you lose your shirt." - Fred Allen
20. "There is no such thing as a good tax." - Winston Churchill