India’s Tax Law:
The history of the Income-tax Department dates back starts in the year 1922. In 1922, for the first time, a specific nomenclature to various Income-tax authorities was given and thus, foundation of a proper system of administration was laid. In 1924, Central Board of Revenue constituted the Board as a statutory body for the administration of the Income-tax Act to impart functional responsibilities. The amendments to the Income tax Act in 1939, made two vital changes namely
1. Functions to hear and dispose of the matters was separated from administrative functions
2. a central authority was established in Bombay.
In 1940, with a view to exercise an effective control over the progress and inspection of the work of Income-tax Department throughout India, the first office of the Board, called Directorate of Inspection (Income Tax) - was created. As a result of separation of executive and judicial functions, in 1941, the Tribunal came into existence. By 1963, the Income Tax department was burdened with the administration of several other statutory Acts like Wealth Tax Act, Gift Tax Act etc and also with the functions of Enforcement Directorate. It had expanded to such an extent that it was considered necessary to constitute a separate Board. Consequently, the Central Board of Direct Taxes was formed.
India’s tax system has evolved at a rapid pace thereby changing themselves according to the business environment and economic needs and has developed into a refined tax system.
India’s tax laws and policies are mainly propagated by Ministry of Finance anfollowing :
Ministry of Finance
Central Board of Direct taxes
Ours is a Parliamentary system of Government and the Constitution has, therefore, vested the power over the purse in the hands of chosen representatives of the people, thus sanctifying the principle of ‘no taxation without representation’. After the General Discussion on the Budget proposals and Voting on Demand for Grants,...