Income Tax NWR

About North West Region

North West Region is the land of most ancient history in India. It is the land of Indus Valley Civilization, one of the oldest ancient civilizations that came into existence in this world, dated as over 5000 years old. Indus Valley civilization was first to have an elaborate and planned cities, paved roads, drainage system, a large-scale rainwater collection storage system, terracotta brick and statue production, skilled metal working (in both bronze and precious metals), weights and earthen pots.The farthest eastern extent of Alexander the Great's exploration was along the Indus River.The region was conquered by many ancient empires including the Gandhara, Nandas, Mauryas, Sungas, Kushans, Guptas, Palas, Gurjara-Pratiharas and Hindu Shahis. This region has been the catalyst in bringing any political, economic or cultural changes. This region contains movernance)

In India, there are references both in Manu Smriti and Arthasastra to a variety of tax measures. The taxes were related to the income and expenditure of the subject. It was stated that excessive taxation or complete absence of taxes should be avoided. The detailed analysis given by Manu on the subject clearly shows the existence of a well-planned taxation system, even in ancient times. Taxes were paid in the shape of gold-coins, cattle, grains, raw-materials and also by rendering personal service.

It is Kautilya's Arthasastra (around 350 BC), which deals with the system of taxation in a real elaborate and planned manner. It is largely devoted to financial matters including financial administration. The Mauryan system, applied tax system to agriculture which formed an important source of revenue to the State. The State also levied water rates, octroi duties, tolls and customs duties, on forest produce, salt tax as well as from mining of metals etc.Goods were imported from China, Ceylon and other countries and levy known as a vartanam was collected on all foreign commodities imported in the country. There were another levies like Dvarodaya (Paid by concerned businessman), yatravetana (Paid by pilgrims)

According to the Arthasastra, each tax was specific and there was no scope for arbitrariness. Precision determined the schedule of each payment, and its time, manner and quantity being all pre-determined. The land revenue was fixed at 1/6 share of the produce, import duties on foreign goods were roughly 20 per cent of their value. Similarly, tolls, road cess, ferry charges and other levies were all fixed. Kautilya's concept of taxation is more or less akin to the modern system of taxation. His overall emphasis was on equity and justice in taxation. The reason why Kautilya gave so much importance to public finance and the taxation system in the Arthasastra is not far to seek. According to him, the power of the government depended upon the strength of its treasury. However, he regarded revenue and taxes as the earning of the sovereign for the services which were to be rendered by him to the people and to afford them protection and to maintain law and order.

Timeline of Taxation After 1922

The organizational history of the Income-tax Department starts in the year 1922. The Income-tax Act, 1922, gave, for the first time, a specific nomenclature to various Income-tax authorities. The foundation of a proper system of administration was thus laid. In 1924, Central Board of Revenue Act constituted the Board as a statutory body with functional responsibilities for the administration of the Income-tax Act. Commissioners of Income- tax were appointed separately for each province and Assistant Commissioners and Income-tax Officers were provided under their control. During 1940 to 1947, Excess Profits Tax and Business Profits Tax were introduced and their administration handed over to the Department (later repealed in 1946 and 1949 respectively).

1939

Appella-3-1949).

1951

Report of Income-tax Investigation Commission known as Vardhachari Commission received.
Voluntary Disclosure Scheme introduced.

1952

Directorate of Inspection (Investigation) set up.
Inspector of Income-tax declared as an I.T. authority

1953

Indian Revenue Services was created
Estate Duty Act, 1953 came into existence w.e.f. 15-10-1953.
Act XXV of 1953 gave effect to the recommendations of Commission appointed under Taxation of Income (Investigation Commission) Act, 1947.

1954

Internal Audit Scheme in the Income-tax Department introduced.
Taxation Enquiry Commission known as John Mathai Commission set up.

1957

The Wealth tax Act, 1957 introduced w.e.f. 1-4-1957.
I.R.S.(DT) Staff College started functioning at Nagpur and much later four R.T.Is. stationed at Bombay, Calcutta, Bangalore and Lucknow opened.

1958

The Gift-tax Act, 1958 introduced w.e.f. 1-4-1958.
Report of Law Commission received.

1957

The Wealth tax Act, 1957 introduced w.e.f. 1-4-1957.
I.R.S.(DT) Staff College started functioning at Nagpur and much later four R.T.Is. stationed at Bombay, Calcutta, Bangalore and Lucknow opened.

1958

The Gift-tax Act, 1958 introduced w.e.f. 1-4-1958.
Report of Law Commission received.

1959

Direct Taxes Administration Enquiry Committee submitted its report.

1960

Directorate of Inspection (Research, Statistics & Publications)was set up.
Two grades of Inspectors - selection and ordinary grades - merged into one single grade.

1961

Direct Taxes Advisory Committee set up - Direct Taxes Administrative Enquiry Committee constituted.
Income-tax Act, 1961 came into existence w.e.f. 1-4-1962.
Revenue Audit introduced for the first time in the Department.
New system for evaluation of work done by Income-tax Officers introduced.

1963, 1964

Central Board of Revenue bifurcated and a separate Board for Direct Taxes known as Central Board of Direct Taxes (CBDT) constituted under the Central Board of Revenue Act, 1963.
For the first time an officer from the department became Chairman of the CBDT w.e.f. 1-1-1964.
The Companies (Profits) Sur -tax Act, 1964 was introduced.
Annuity Deposit Scheme, 1964 introduced.

1965

Voluntary Disclosure Scheme came into operation.

1966

Functional Scheme introduced.
Special Recovery Unit created.
Intelligence Wing created and placed under the charge of Directorate of Inspection (Investigation).

1968

Valuation Cell came into existence in the Income tax Department.
Report of rationalisation and simplification of tax structure (Bhoothalingam Committee) received.
Administrative Reforms Commission set up.

1969

Direct Recruitment to Class II Income-tax Officers made.
The post of IAC (Audit) created in the Income-tax Department.

1970

The posts of Addl. Commissioner of Income-tax created and abolished after one year.
Recovery functions which were hitherto performed by Income- tax Officers, given to Tax Recovery Officers. Prior to that State Government officials exercised the functions of a Tax Recovery Officer.

1971

A new cadre of posts known as Tax Recovery Commissioners introduced w.e.f. 1.1.1972.
Report of Direct Taxes Enquiry Committee received.
Summary Assessment Scheme introduced w.e.f. 1-4-1971.

1972

A Special Cell within the Directorate of Inspection (Investigation) created to oversee the cases of big industrial houses.
A new cadre of posts known as IAC(Acq.) created and IAC appointed as Competent Authority with the insertion of new Chapter XXA in the Income Tax Act, 1961 on the acquisition of immovable
properties in certain cases of transfer to counter evasion of tax.
Directorate of Organization & Management Services (Income- tax) created.
The post of I.T.O. (Internal Audit) created.
Bradma Scheme in the Income-tax Department introduced.
System of Permanent Account Number introduced.
Valuation Officers given statutory powers under the Income-tax Act, 1961 and Wealth-tax Act, 1957.

1974

Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 introduced.
Action Plan for the Income-tax Officers introduced for the first time.
Concept of M.B.O introduced.

1975

Voluntary Disclosure Scheme for Income and Wealth implemented.
Special Cell for dealing with Smugglers' cases created.

1976

Settlement Commission created and Taxation Laws (Amendment) Act,1975 inserted a new Chapter XIXA in the Income Tax Act w.e.f.1-4-1976.
Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 introduced w.e.f. 25-1-1976.
A new scheme for departmentalization of accounts introduced.
Chokshi Committee submitted its interim report.

1977

A new cadre of posts known as IAC (Assessment) created.

1978

Appellate functions given to a new cadre of Commissioners known as Commissioner (Appeals).
Directorate of Inspection (Recovery) set up.
A new directorate known as Directorate of Inspection (Vigilance) came into existence by bifurcating the functions of Directorate of Inspection (Investigation).
Chokshi Committee submitted its final report.

1979

A new directorate designated as Directorate of Inspection (Publication & Public Relations) created out of the Directorate of Inspection (RS&P).

1980

Hotel Receipt Tax Act, 1980 came into force w.e.f. 1.4.1981.

1981

Economic Administrative Reforms Commission set up.
Three new Directorates viz. Directorate of Inspection (Intelligence), Directorate of Inspection (Survey) and Directorate of Inspection (Systems) created.
Within the Directorate of Inspection (Income Tax and Audit), a separate Director of Inspection (Audit) appointed.
Directorate of Inspection (RS&P) re-organised and Directorate of Inspection (P&PR) re-designated as Directorate of Inspection (Printing & Publications).
I.R.S.(DT) Staff College, Nagpur, re-designated as National Academy of Direct Taxes.
Special Bearer Bonds (Immunities & Exemptions) Act promulgated.
Director General (Special Investigation) and Director General (Investigation) appointed to control the functioning of various Directorates under the control of Central Board of Direct Taxes.
Five posts of Chief Commissioner (Administration) created.
A few posts of Commissioner of Income-tax were earmarked as Commissioner of Income-tax (Inv.) and Commissioner of Income- tax (Recovery).
Computerization in the Income-tax Department started with the setting up of the Directorate of Income tax (Systems)

1982

Special Cell within the Directorate of Inspection (Investigation) converted into a separate Directorate and re-designated as Directorate of Inspection (Special Investigation).
DIT (Systems) appointed in the Directorate of Income-tax (Organisation and Management Services) to coordinate efforts in introducing electronic data processing in the IT Deptt. A microprocessor based EDP system along with data entry system was installed heralding the era of computerization.
Levy of Hotel Receipts Tax discontinued.
Regional Training Institute at Nagpur started functioning under the control of the National Academy of Direct Taxes.

1983

The vigilance set up reorganised and the strength of Dy. Director (Vigilance) and Asstt. Director(Vigilance) augmented.
Computerised systems for processing challans and PAN designed and developed.

1984

Taxation Laws(Amendment) Act 1984 passed to streamline procedures in the interest of better work management; avoid inconvenience to tax payers; reduce litigation; remove anomalies and rationalise some provisions.

1985

Post of Director General (Investigation) created for more effective checking of tax evasion.
E.D.(Amendment) Act 1985 discontinues levy of estate duty on deaths occurring on or after 16.03.1985.
Compulsory Deposit Scheme (Income Tax Payers) Act 1974 discontinued w.e.f. 1.4.1985.
Interest Tax Act, 1974 discontinued w.e.f. 31.3.1985
A new "Reward Scheme" for motivating officers introduced w.e.f. 1.4.1985.

1986

Established Settlement Commission.
Introduced Block assets concept for depreciation.
Four offices of Appropriate Authority for acquiring property in which unaccounted money is invested set up in metropolitan cities.

1987

Government's approval obtained to set up three new benches of Settlement Commission.
L.K. Jha Committee set up for simplification and rationalisation of tax laws.
Office of Directorate General (Tax Exemption) set up at Calcutta.
The Direct Tax Law(Amendment) Act 1987 introduced uniform previous year and redesignated the following authorities :-
Director of Inspection
Insp. Asstt. Commissioner of I.Tax
Appellate. Asstt. Commissioner
Income tax Officer Gr. A
Income tax Officer Gr. B
Director of Income Tax
Dy. Commissioner of Income Tax.
Do- (Appeals)
Asstt. Commissioner of I.Tax
Income tax Officer
Expenditure Tax Act 1987 brought into force.

1988

Benami Transactions Prohibition Act 1988 introduced.
The Government announced a "Time Window Scheme" which allowed tax payers 50% rebate of interest u/s 220(2) if they pay the tax and balance interest. The scheme was in operation between 1.7.88 to 30.9.88.
CIT (Central) placed under the control and supervision of Director General (Investigation).
Government decided that cadre control for Group 'C' and 'D' posts would be with Chief Commissioner and with CBDT for Group 'A' and 'B'posts.
Extension of Direct Tax Law to the State of Sikkim by a
Notification of the President of India dated 7.11.1988.

1989

Creation of an attached office of DGIT(Management Systems) to supervise Directorate of I.Tax(Research, Statistics, Publication & Public Relations) and Directorate of I.Tax (Organisation and
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Management Services) from Sept. 1989.

1990

Gift tax Bill introduced on 31.5.1990.
Creation of 65 posts of Dy. Commissioner of I.Tax by upgradation of equal number of posts of Asstt. Commissioner of I.Tax.

1991

Interest Tax Act, 1974 revived.
Directorate of I.Tax(Systems) started reporting directly to Board.

1992

Rs. 1400 Presumptive Taxation scheme introduced as a measure to widen tax base.
The post of Director General of Income-tax (Management Systems) was abolished.

1993

40 additional posts of Commissioner of Income-tax (Appeals) created.
Authority for Advance Rulings set up.
A comprehensive phased cadre review for Group B, C and D initiated.

1994

2068 additional posts in Group B, C and D sanctioned.
New PAN introduced.
Regional Computer Centres (RCCs) were set up in Chennai, Delhi and Mumbai.

1995

New procedure for search assessment introduced.
50 years of training commemorated and "Seminar Twenty Five" introduced by National Academy of Direct Taxes.

1996

77 posts of Commissioners of Income-tax created.
Infrastructure for operational needs strengthened.
Study report on 4th cadre review of Group 'A' officers (IRS) of the Department prepared by Directorate of Income Tax

1997

Rates of Income-tax reduced significantly.
Legal measures to widen tax base on certain economic indicators introduced in selected cities.
Presumptive tax scheme discontinued.
Voluntary Disclosure Scheme 1997 introduced.
Minimum Alternate Tax introduced.
National Computer Centre (NCC) was set up in Delhi.

1998

Sec. 260A introduced enabling direct appeals to High Court.
1/6 Scheme & penalty for non-filing of return introduced to widen tax base.
Gift-tax abolished for gifts made after 1.10.1998.
KarVivadSamadhan Scheme 1998 introduced.
Silver Jubilee of Regional Training Institutes celebrated.
Designation of Asstt. Commissioner (Senior Time Scale) changed to Dy. Commissioner and that of Dy. Commissioner (Junior Administrative Grade) to Joint Commissioner.

1999

Furnishing details of bank account and credit cards in the prescribed form made mandatory for refund purpose.
Prima-facie adjustments to return done away with; acknowledgments to serve as intimations.
Samman Scheme introduced in 1999 to honour deserving tax payers.

2000

The process of implementation of restructuring of the Department commenced to increase efficiency and to deal with increased workload.
Total sanctioned work force reduced from 61,031 to 58,315.
Certain rationalisation measures at structural levels introduced.
Interest-tax Act terminated with effect from 1-4-2000.

2001

The restructuring of the Department resulted in reducing the stagnation at all levels and large number of personnel were promoted in various grades.
Jurisdiction pattern was revamped.
New posts were created at the level of DGIT/DIT in the areas of Research, International Taxation and Infrastructure.

2002

Computerised processing of returns all over the country introduced.
Kelkar Committee Report, inter alia, recommended :- i. Outsourcing of non-core functions of the department ; ii. Reduction in exemptions, deductions, reliefs, rebates etc.
The National Website of the Income Tax Department (www.incometaxindia.gov.in) was launched to provide a vital interface between the Department and taxpayers.

2003

The National Website of the Department (www.incometaxindia.gov.in) won the Silver Medal in the category of the 'Government Websites'under the National e-Governance Awards.

2004

As a measure of widening of tax base, the concept of AIR (Annual Information Return) was introduced.
Fringe Benefit Tax (FBT) was introduced as a major step towards widening of tax base and bolstering of the Direct Tax Collection.
Securities Transaction Tax (STT) was introduced.

2005

Tonnage Tax was introduced for the Shipping Companies.
Banking Cash Transaction Tax (BCTT) was introduced w.e.f. 01-06-2005.

2006

A project for enabling electronic filing (e-filing) of Income Tax Returns was launched.
Tax Return Preparer Scheme (TRPS) was launched to assist individuals and HUF taxpayers to file their Return of Income.
The institution of Income Tax Ombudsman set up in 12 cities throughout the country to look into tax related grievances of the common public.

2007

The Refund Banker Scheme was launched in Delhi and Patna charges.
Sevottam Scheme was launchedto standardize service delivery to the taxpayers.
The first citizen-friendly single window Aayakar Seva Kendra (ASK)wassetup,for centralized receipt and registration of specified categories of documents, including income tax returns.
The Income Tax Department became the biggest revenue mobiliser for the Government in 2007-08, with its share increasing from 34.76%in 1997-98 to 52.75%in 2007-08.
All India Tax Network (TAXNET) was setup connecting more than 700 offices in more than 500 cities. Consolidation of 36 (RCC) independent regional databases into a single centralized database (PDC or Primary Data Centre) was carried out.
Integrallence in Government Process Re-engineering' under the National e-Governance Awards for the year 2010-2011.
To simplify the 50 years old Income-tax Act, 1961,'The Direct Taxes Code Bill, 2010' was introduced in the Parliament.
July 24 to be celebrated as Income Tax Day

2011

Foreign Tax Division of CBDT was strengthened to effectively handle the increase in tax information exchangeand transfer pricing issues.
Various IT initiatives were taken for efficient tax administration. These include e-filing and e-payment of taxes, adoption of 'Sevottam' concept by CBEC and CBDT, web based facility for tax payers to track the resolution of refunds and credit for pre-paid taxes and augmentation of processing capacity.
A new simplified form 'Sugam' was introduced to reduce the compliance burden of small tax payers falling within presumptive taxation.

2012

Senior Citizens (not having any income from business/profession), were exempted from payment of advance tax.
TRACES (TDS Reconciliation, Accounting and Correction Enabling System) launched to serve an integrated one-stop platform for the stakeholders to facilitate the services related to TDS operations.
The Government approved the Cadre restructuring of the Department for the creation of 20,751 additional posts and for carrying out various measures to increase the effectiveness of the Department.
Briefly, the salient features of the approved restructuring are as under:
Number of assessment units (AUs) increased by 1080 from 3420 to 4500, for strengthening the tax-administration;
Each Range to have one more Assessing Officer;
Increase in the number` of Administrative CsIT deployed on assessment related functions to increase from 228 to 250;
114 Special Ranges to be created, with adequate supporting manpower;
Creation of reserves numbering 620 created in the IRS cadre;
Bifurcation of the posts of the CITs in the HAG and SAG scales, on functional basis;
Upgradation of all existing 116 posts of CCsIT in HAG+ and Apex scales along with an increase of their number by 1 post;
Strengthening of the training set-up with creation of three more RTIs;
Strengthening the Appellate/Advocacy Structure by increasing the number of CIT Appeals and providing them supporting manpower. Advocacy structure in the ITAT to be strengthened.

2014

New National Website of the Income Tax Department www.incometaxindia.gov.in launched with enhanced new features and content.
SIT to investigate Black Money in Swiss Bank Accounts formed
Tax Administrative Reforms Commission (TARC) headed by Dr. Parthasarathi Shome submitted its report of reviewing the applicability of tax policies and tax laws in the context of global best practices and recommending measures for reforms required in tax administration to enhance its effectiveness and efficiency.

2015

The Central Board of Direct Taxes (CBDT) issued the draft guidelines for determination of the place of effective management (POEM) of a company
CBDT comes up with a new facility for pre-filling TDS data while submitting online rectification application to Income-tax department
CBDT issues guidelines on condonation of delay in filing claim for refund/carry forward of losses

2016

Income Declaration Scheme, 2016 was brought
CBDT revises time schedule for making payment and issues further clarifications
CBDT defers Income Computation and Disclosure Standards to AY 2017-18