Changes in administrative setup, history of taxation, post-1922

Tax Reforms: Among the significant administrative and policy changes made in recent years are the following:-

(1) Among the policy changes are:-

    (a) Rate reductions;

    (b) The removal or diminution of significant incentives;

    (c) the implementation of presumptive taxation procedures;

    (d) tax code simplification, notably in regard to capital gains; and

    (e) expanding the tax base.

(2) The administrative changes consist:-

   (a) Computerization, which involves assigning taxpayers a special identification number that is increasingly used as a special business identity number; and

   (b) realigning the existing human resources with the organization's altered business requirements.

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Computerization: The Directorate of Income Tax (Systems) was established in 1981, marking the beginning of computerization within the Income-tax Department. It was initially decided to computerise the processing of challans. For this, three computer centres were originally established in 1984–1985 in major cities employing SN–73 systems. By 1989, 33 significant cities were included in this. The allocation of PAN under the previous series, the allocation of TAN, and payroll accounting were subsequently added to the list of automated tasks. These computer centres employed dumb terminals and batch processing to enter data.

The Government established a Working Group in 1993 to provide suggestions for the department's computerization. In October 1993, the Government adopted a thorough computerization plan based on the Working Group's findings. Regional Computer Centers with RS6000/59H Servers were established in 1994–1995 as a result in Delhi, Mumbai, and Chennai. The details of 80g income tax can be fetched here.

In these places, PCs were first gradually distributed to police officers. As part of the strategy, every LAN/WAN user was supposed to be networked. As a result, networks with leased data lines were set up in Phase I between 1995 and 1996 in Delhi, Mumbai, and Chennai. A national computer centre was built in Delhi in the years 1996–1997. Software for integrated applications was developed and put into use between 1997 and 1999.

In 1996-1997, midrange servers of the RS6000 type were then installed in the additional 33 Computer Centers in a number of significant cities. These had leased lines connecting them to the National Computer Center. PCs were gradually provided to law enforcement officials at all levels, including ITOs, between 1997 and 1999. Offices were integrated into the network and connected to RCCs and NCCs in 57 cities during phase II.

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Info on section 80g.