FM Says Direct Taxes are Major Resource for Undertaking Development Work; Releases Coins in Denomination of Rs. 150 and Rs. 5 to Commemorate Completion of 150 Years of Income Tax

Union Finance Minister Shri Pranab Mukherjee said that direct taxes are now the major resource provider to the Central Government for undertaking developmental work. The Finance Minister said that direct Taxes collections have grown at an average annual rate of 24 percent in the last five years and has nearly trebled from Rs.1,32,771 crore in financial year 2004-05 to aboutRs.3,78,000 crore in financial year 2009-10. He said that direct taxes’ share in GDP has also increased from 4.1 percent to 6.1 percent of the Gross Domestic Product (GDP). The Finance Minister Shri Mukherjee was speaking at a function here today after releasing the commemorative coins in denomination of Rs 150 and Rs.5 to mark the completion of year long celebrations of 150 years of Income Tax.The function was also attended by Shri S.S.Planimanickam, MOS(Revenue), Ms Sushma Nath Finance Secretary, Dr Kaushik Basu,          Chief Economic Adviser, Shri Sunil Mitra, Revenue Secretary, Shri R.Gopalan, Secretary, Economic Affairs, Chairman,CBDT and Chairman, CBEC, members of CBDT and senior officials of the Finance Ministry among others.

The Finance Minister Shri Pranab Mukherjee said that direct taxes  collections have registered a growth of 20% during the current year so far and have reached nearly Rs.3,35,000 crores. He said that this sustained growth has been possible due to rationalisation of tax structure, improvement in tax administration and persistent efforts of the employees of Income Tax department.

The coins minted under the authority of the Central Government, commemorate “Income Tax – 150 years of Building India.” The reverse faces of the coins bear the portrait of “Chanakya and Lotus with Honeybee” at the centre representing his famous lines, “..... Ideally, governments should collect taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive.....”. Just below the portrait of Chankya, the word “Chanakya” is written in Hindi and English. The left and right peripheries of the coins are flanked with words “Income Tax-150 years of Building India” in both Hindi and English.The one hundred and fifty rupees coin is not only unique for its denomination but also its size and metal composition. This 44 millimetres circular coin is made of 50% silver.

        Earlier welcoming the Finance Minister, Chairman,CBDT Shri Sudhir Chandra said that release of coins in denominations of Rs. 150 and Rs. 5 today by the Union Finance Minister Shri Mukherjee to commemorate this event marks a significant milestone in the history of the Income Tax Department. The yearlong celebrations were inaugurated by Shri Pranab Mukherjee, Hon’ble Union Finance Minister on 24^th July 2010 to mark completion of 150 years of income tax in India at a grand opening ceremony at FICCI Auditorium inNew Delhi. 

Shri Chandra said during the year long celebrations, the Finance Minister had released the Citizen’s Charter and Vision-2020 document of Income Tax Department on completion of 150 years of Income Tax in India.

In the legislative history of India, income tax was introduced for the first-time vide the Act No. XXXII of 1860 imposing duties on profits arising from property, professions, trades & offices. It was passed by the Legislative Council of India and received the assent of the Governor General on the 24^th July 1860. This Act was the precursor to the modern income tax law in the country.