Income tax act 1961 historical development ,assessee,assessment year previous year,agriculture income tax law in india
Historical Development of Income Tax Law in India Introduction Taxation is one of the oldest functions of a State. In India, the system of taxation existed even in ancient times. The modern legal framework of Income-tax law began during the British period and has undergone several changes. Today, the Income-tax Act, 1961 governs taxation of income in India. 1. Ancient and Medieval Period Kautilya’s Arthashastra (4th Century B.C.) : Mentions various taxes like Bali , Bhaga , and Kara . Farmers paid 1/6th of their produce as tax. Mughal Period : Taxes were mainly in the form of land revenue ( Zakat, Khiraj, Jaziya ). There was no separate income tax, but revenue collection was the main source for the State. 2. British Period – Beginning of Modern Income Tax First Income-tax Act, 1860 : Introduced by Sir James Wilson to meet financial needs after the Revolt of 1857 . Levy on income from property, professions, trades, offices, and salaries. Abolished in 1865. Sub...