New Delhi | Manish Mishra: If you are employed and your income is more than Rs 2.50 lakh, you have to pay Income Tax to the government.
Sir James Wilson introduced the tax in 1860 for this purpose.
The British rulers suffered huge losses due to the rebellion by the sepoys in 1857.
The special feature of the Income Tax Act 1922 was that the rates of taxes were decided according to the budgetary requirements of the then period.
After it was implemented, there was a significant change in the history of income tax in the country.A system for revenue audit was introduced in the country for the computation of tax.
When the government collects tax from the people, it goes directly to its treasury.
Mainly, money collected through taxes is used for building hospitals, roads, educational institutions, and free houses/electricity/rations for the poor.