Question

For the first time in India Income Tax was introduced by Sir James Wilson in the year:

• A. 1886
• B. 1868
• C. 1860
• D. None of the Above

Hint:

Associate the first introduction of Income Tax in India with the aftermath of the 1857 Rebellion. The British government needed to raise revenue to cover the costs, leading to the tax being introduced in 1860.

Answer 1

The Correct Option is C

Income Tax was introduced in India for the first time in 1860 by Sir James Wilson. He was the Finance Member of the India Council, brought in to address the severe financial crisis that followed the Indian Rebellion of 1857. The tax was introduced as a temporary measure to meet the heavy losses sustained by the government during the mutiny. This marked the beginning of direct taxation in India, which has since evolved through various acts into the current Income Tax Act, 1961.