Finance and Corporate Affairs Minister Nirmala Sitharaman is scheduled to preside over the Income Tax Day celebrations in the national capital on Wednesday, August 21. The day marks the 165th Income Tax Day, marking a significant milestone in the country's fiscal history. 

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The event is scheduled to begin at 4 pm in Plenary Hall at Vigyan Bhawan in the national capital on August 21, the Ministry of Finance announced on microblogging site X (formerly Twitter).

What is Income Tax Day? 

This day commemorates the introduction of income tax in the country by Sir James Wilson in 1860, according to an official statement. 

While this initial implementation laid the groundwork, it was the comprehensive Income-tax Act of 1922 that truly established a structured tax system in the country. 

This Act not only formalised various income tax authorities but also laid the foundation for a systematic administration framework.

 

Significance of Income Tax Day

Income tax plays a crucial role in nation-building as it supports the fundamental functions of an effective state. 

Income tax provides the necessary revenue to ensure security, funding essential services like healthcare, education, and infrastructure - services vital for the well-being of citizens and the overall development of society. 

Revenue from income tax facilitates economic development by enabling investments in various sectors, promoting growth, and creating jobs.