History of taxation Post 1922

Preliminary

The recent decades' quick changes in direct tax administration are a reflection of India's socio-economic thinking history. Since the I.T. Act of 1922 has undergone such rapid development from 1922 to the present, it is difficult to find any remnants of it in the 1961 Act as it has been changed to this point. In these conditions, it was only natural for the department's organisational structure to alter structurally in addition to growing.

Changes to the department's administrative structure since it was founded

The Income-tax Department's organisational history begins in the year 1922. The Income-tax Act of 1922 provided the various Income-tax agencies with a clear name for the first time. Thus, the groundwork for an effective administrative structure was established. The Board was established as a legislative organisation with operational duties for the administration of the Income-tax Act by the Central Board of Revenue Act in 1924. For each province, independent commissioners of income tax were selected, and they were in charge of assistant commissioners and income tax officers.

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Two significant institutional modifications were made by the 1939 revisions to the Income Tax Act: the appellate responsibilities were separated from administrative activities, creating a class of employees known as Appellate Assistant Commissioners; and a central charge was established in Bombay. The Directorate of Inspection (Income Tax) was established as the Board's first attached office in 1940 with the goal of exerting effective supervision over the development and inspection of the operations of the Income-tax Department across India. The Appellate Tribunal was established in 1941 as a result of the separation of executive and judicial duties. In the same year, Calcutta also received a central charge. Definitely, donation under 80g is essential for gaining tax favour.

Businesses saw extraordinary earnings as a result of World War II. Excess Profits Tax and Business Profits Tax were implemented between 1940 and 1947, and the Department was given control of their implementation (These were later repealed in 1946 and 1949 respectively). The first voluntary disclosure scheme was introduced in 1951. A small number of Group "A" officers were directly hired during this time, which occurred in 1946. The Group "A" Service was formally established as the "Indian Revenue Service" later in 1953.

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