CURRENT AFFAIRS
CURRENT AFFAIRS
Description
Income Tax Day, celebrated every year on July 24, marks a significant moment in India’s economic history the introduction of income tax in 1860 by Sir James Wilson. Originally implemented to manage the financial burden of war during British rule, the day now stands as a symbol of India’s progress in building a robust, transparent, and tech-driven tax system. It highlights the shift from simple tax collection to a system that promotes self-reliance, equity, and digital governance.
Historical Roots: From Colonial Framework To Digital System
India’s tryst with income tax began on 24 July 1860, when Sir James Wilson introduced the concept to help finance military campaigns. This laid the foundation for a formal tax structure, leading to the Income-tax Act of 1922, which institutionalized income tax regulations and administration.
The establishment of the Central Board of Revenue in 1924 marked a turning point, eventually evolving into the Central Board of Direct Taxes (CBDT). With computerization beginning in 1981, and the launch of the Centralized Processing Centre (CPC) in 2009, India’s income tax administration embraced speed, efficiency, and transparency.
Income Tax Matters In Nation Building
Income tax plays a vital role in shaping India's developmental trajectory by:
Funding public goods such as education, defence, healthcare, and infrastructure
Reducing income inequality through wealth redistribution
Fostering civic trust by encouraging citizen participation in nation-building
Supporting welfare schemes and public investments to create inclusive growth
This revenue mechanism helps ensure that the benefits of development reach all segments of society.
Surge In Taxpayers And Compliance Trends
Over the past five years, India has experienced a 36% increase in income tax return filings. From 6.72 crore returns in FY 2020–21, the number rose to over 9.19 crore in FY 2024–25, indicating:
A broader taxpayer base
Greater public awareness
Strengthened voluntary compliance
These figures reflect a growing trust in the tax system, facilitated by simplification and digital outreach.
Growth In Direct Tax Collection
India’s gross direct tax revenue has shown substantial growth:
Rs 12.31 lakh crore in FY 2020–21
Rs 16.34 lakh crore in FY 2021–22
Rs 19.72 lakh crore in FY 2022–23
Rs 23.38 lakh crore in FY 2023–24
Rs 27.02 lakh crore in FY 2024–25 (provisional)
This upward trend signifies a resilient post-pandemic economy, better compliance, and enhanced revenue collection capabilities.
Driving Change Through Digitization
The Income Tax Department’s digital initiatives have redefined public service delivery:
Key milestones: PAN (1972), Computerization (1981), CPC (2009), TRACES (2012)
TIN 2.0 enabled real-time, multi-mode payment systems
Tools like AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) help in pre-filled returns and reduce errors
Faceless Assessment eliminates subjectivity and reduces taxpayer anxiety
Project Insight uses data analytics to construct complete taxpayer profiles
Platforms such as the Demand Facilitation Centre and e-Verification Scheme promote seamless user experience and trust
Nudge Theory: Empowering Voluntary Compliance
Drawing from behavioral economics, the NUDGE (Non-Intrusive Usage of Data to Guide and Enable) framework encourages taxpayers to:
Check and update tax filings
Respond to discrepancies proactively
Make accurate and timely declarations
Instead of focusing on enforcement first, this approach promotes trust-based, non-invasive compliance while still using analytics and field intelligence to curb evasion.
Key Budget 2025–26 Reforms
The recent Union Budget introduced several tax-friendly measures:
Tax exemption up to Rs 12 lakh under the new tax regime
Standard deduction raised to Rs 75,000
TDS/TCS thresholds increased
Return filing window extended from 2 years to 4 years
These initiatives are designed to benefit the middle class, boost consumption, and streamline compliance.
Commemorating Income Tax Day: A National Milestone
Income Tax Day serves not just as a historical commemoration but also as a celebration of India’s transformation into a digitally enabled, citizen-centric tax system. It honors:
The legacy of tax reforms
The contribution of taxpayers and officers
The power of digital governance in promoting accountability
The day reminds us of the crucial role taxes play in shaping a just, inclusive, and progressive India.
Welcome to Notopedia.com, your free learning platform that caters to the diverse needs of students and aspirants across a spectrum of entrance exams and educational endeavors. Whether you're preparing for highly anticipated exams like CAT, NEET, JEE Main, or bank job vacancies, our platform offers a wealth of resources to guide you towards success. Stay up-to-date with the latest exam dates, announcements, and results for various government recruitment exams, including SSC CGL, CHSL, NDA, and UPSC. Explore comprehensive study materials, sample papers, and exam patterns to hone your skills and boost your confidence. From important dates like CBSE Class 10 and 12 date sheets to exam-specific information like JEE Main application form date, we cover it all. Notopedia.com is your go-to source for everything from admissions and admit cards to scholarships and college information. Whether you're aiming for a career in defense, government, banking, or higher education, our free learning platform equips you with the knowledge and resources you need to excel. Join us in your educational journey and unlock a world of opportunities, guidance, and comprehensive support.
For more Updates and Information - Visit Notopedia's Bulletin Board
For Latest Sarkari Jobs - Visit Notopedia's Sarkari Jobs Section
For access to more than 20,000 Colleges - Visit Notopedia's College Section
For School Studies and Exams Preparation across 14 Boards - Visit Notopedia's School Section
For Comprehensive Preparation of Sarkari Job Exams - Visit Notopedia's Sarkari Exams Section
