Why in News? (166th Income Tax Day 2026)
India celebrates Income Tax Day annually on July 24th. In 2026, the 166th Income Tax Day was observed to acknowledge the historical beginning of direct taxes and honor honest taxpayers.
What is Income Tax & 5 Heads of Income
Income tax is a direct tax levied on income under 5 heads specified in Section 2(24) of the Income Tax Act 1961: Salary, House Property, Business/Profession, Capital Gains, and Other Sources.
Historical Evolution of Income Tax in India (1860 to 2026)
Historical evolution of income tax in India from Sir James Wilson's initial introduction in 1860 to the 1961 Act, creation of CBDT in 1964, CPC Bengaluru in 2009, and celebration of Income Tax Day since 2010.
Tax Administration: CBDT & Key Digital Initiatives
Overview of CBDT and digital initiatives including E-filing portal, Faceless assessment, AIS, TIS, PAN-Aadhaar linking, E-verification, and Vivad Se Vishwas scheme.
Significance of Income Tax Day & Nation Building
Direct tax revenues drive national development in healthcare, defense, and infrastructure while creating a transparent social contract.
Exam Key Points & Quick Revision
High-yield quick revision points tailored for UPSC, MPPSC, and SSC examinations.
Practice Questions
1On which date is Income Tax Day celebrated annually in India?
2Who introduced income tax in India on 24th July 1860 following the financial crisis post the 1857 revolt?
3In which year was Income Tax Day formally celebrated for the first time in India?
4From which date did the currently applicable Income Tax Act, 1961 come into force?
5Which statement is correct regarding the Central Board of Direct Taxes (CBDT)?
6Where was the Centralized Processing Centre (CPC) established in 2009 for automated return processing?
7Which of the following is included among the 5 heads of income under Section 2(24) of the Income Tax Act?
8Which dispute resolution program was introduced to settle pending direct tax litigation between taxpayers and the government?
Frequently Asked Questions
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