MANAGEMENT

Detailed explanation-1: -In India, this tax was introduced for the first time in 1860, by Sir James Wilson in order to meet the losses sustained by the Government on account of the Military Mutiny of 1857. Thereafter, several amendments were made in it from time to time. In 1886, a separate Income tax act was passed.

Detailed explanation-2: -The organisational 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.

Detailed explanation-3: -James Wilson, the first Finance Minister of the British Indian Government introduced the tax system in India. In 1860, income tax was introduced by James Wilson in India.

Detailed explanation-4: -Under the the Indian Income Tax Act of 1886, income was divided into four schedules taxed separately: (1) salaries, pensions or gratuities; (2) net profits of com-panies; (3) interests on the securities of the Government of India; (4) other sources of income.

Detailed explanation-5: -James Wilson, the Scotsman who created India’s first Budget, introduced the income tax act in 1860.