JAYACHANDRA

  FOC UNIT 4   1.      Explain the Origin of Income-tax and its Features ? A.     Origin:- The Military Mutiny of 1857 caused heavy losses to British India. To come out of the financial crisis, the then Economic Advisor, Sir James Wilson advised introduction of income-tax and following his advice the then British Government introduced income –tax for the first time in the year 1860. So many changes took place in the provisions of 1860 Act and finally another bill was passed in the year 1886. This 1886 Act provided a permanent place for income tax in the Indian system. A number of amendments were made to the Act from time to time finally in 1922 income –tax became a central subject which leads to create “The Central Board of Revenue”. The income tax Act of 1922 was subject to so many changes and remained in force till the assessment year 1961-62. The Present Income tax Act which is being followed in the country is mainly based on the...