What is in news : 161 Income tax day was recently celebrated

Income Tax Day

• Income tax was introduced in India by Sir James Wilson on July 24, 1860, to compensate the British government for the losses incurred during the First War of Independence in the year 1857.
• The income tax department decided to mark July 24 in 2010 as the day for the annual celebration to mark 150 years of this levy from that year onwards.

Income Tax In India

• Income tax is a type of tax charged by the central government on the income earned during a financial year by businesses and individuals.
• Taxes are sources of revenue for the government.
• The government utilizes this revenue for developing infrastructure, education, providing healthcare, subsidies to the agriculture/farmer sector, and other government welfare schemes.
• Taxes can be categorized into two types, direct taxes and indirect forms of taxes. Tax levied directly on the income earned is called a direct tax, for example, Income tax is a direct tax.
• The tax calculation is based on the income slab rates applicable during that financial year.