Andhra Pradesh - Visakhapatnam   

"Lion's share of revenue from I-T"

Staff Reporter

VISAKHAPATNAM: The word `income tax' was used for the first time by the British rulers in 1860 - after the Sepoy Mutiny.

Speaking on the `Origin of income tax' at a meeting conducted by Vasavi Chaitanya Foundation here on Sunday, Assistant Commissioner of Income Tax K.V. Ramana Murthy said that the tax was imposed following economic recession in the wake of the sepoy mutiny.

He said that the Britishers had replicated their tax system in India for five years from 1860 to mop up resources. After some time, it was put into legislation. Mr. Murthy said the Vysyas, who used to do business, were known for charity and contributing a lot towards revenue. He said Shah Alam-II was responsible for awarding the contract to East India Company for collection of taxes in Orissa, West Bengal and Madhya Pradesh on payment of Rs. 26 lakhs per State.

The East India Company later levied taxes on salt and opium and introduced customs duty, octroi and court fee to enhance revenue. He said land revenue - including income on agriculture, was brought under tax subsequently. Agriculture was exempted from tax in 1877, which was continuing till now. The I-T bill was introduced in 1886. Filing of returns was made compulsory from April 1, 1918.

Mr. Murthy said as of now, income tax accounted for 50 per cent of the nation's revenue. "Even kings used to collect taxes. As part of meeting expenses towards governance, even labourers were asked to offer one day free service in a week to the king,'' he pointed out.

Vasavi Chaitanya Foundation president Y.V. Narasimham and secretary D. Ch. Venkata Rao spoke.

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