T. T. Krishnamachari
The expenditure tax was first introduced by T. T. Krishnamachari (then Finance Minister) in 1957. After being abolished in 1962 by Morarji Desai, it was brought again in 1964.

Who had introduced expenditure tax in India for the first time?

Nicholas Kaldor was British Economist who gave a report on tax reforms in eight developing countries of Asia. He had suggested an imposition of expenditure tax in india for the first time to increase the tax revenues of the government.

What is expenditure tax in economics?

Expenditure tax, tax levied on the total consumption expenditure of an individual. It may be a proportional or a progressive tax; its advantage is that it eliminates the supposed adverse effect of the personal income tax on investment and saving incentives.

When was income tax introduced India?

1860
In India ,this tax was introduced for the first time in 1860,by Sir James Wilson in order to meet the losses sustained by the Government on account of the Military Mutiny of 1857. Thereafter ,several amendments were made in it from time to time. In 1886,a separate Income tax act was passed.

Which tax system is followed in India?

The Indian tax system is well structured and has a three-tier federal structure. The tax structure consists of the central government, state governments, and local municipal bodies….All About Tax Structure In India.

Who introduced service tax?

Dr. Manmohan Singh
Service Tax was first introduced in 1994 when Dr. Manmohan Singh was the Finance Minister. The initial rate was only 5% and was levied on only 3 services. With the introduction of Krishi Kalyan Cess, the Service Tax rate in India is now 15%.

Who Started tax system in India?

Sir James Wilson
To fill the treasury, the first Income-tax Act was introduced in February 1860 by Sir James Wilson (British India’s first finance minister). The act received the assent of the governor-general on 24 July 1860, and came into effect immediately. It was divided into 21 parts, with 259 sections.

What is an example of a tax expenditure?

For example, the individual itemized deductions for charitable contributions, mortgage interest expense, and state and local taxes are all tax expenditures. When considered individually, the sum of their effects on revenue is greater than when they are considered jointly.

Is Medicare a tax expenditure?

19 All Medicare benefits are excluded from income tax, but JCT measured a positive tax expenditure only if the Medicare insurance benefits for a particular program (Part A, B, or D) were greater than what enrollees paid. Medicare-related tax expenditures increased in both nominal and inflation-adjusted value over time.

What kind of tax is expenditure tax in India?

The Expenditure Tax in India is governed by The Expenditure Tax Act of 1987. The Act was enacted by the Indian government to levy a tax on chargeable expenditure incurred in specified hotels and restaurants. The Expenditure Tax has been abolished and brought back a few times.

What is the history of taxation in India?

History of Taxation in India. Tax payment is mandatory for every citizen of the country. There are two types of tax in india i.e. direct and indirect. Taxation in India is rooted from the period of Manu Smriti and Arthasastra. Present Indian tax system is based on this ancient tax system which was based on the theory of maximum social welfare.

What was the Expenditure Tax Act of 1987?

The Expenditure Tax Act, 1987 is an Act of the Parliament of India. It applies to any charges incurred by an individual and in the event that these charges are implied to be chargeable expenditure. The Act is applicable to all the States and Union Territories in India except the state of Jammu and Kashmir .

When did the Indian Income Tax Act 1961 come into effect?

The 1961 Act came in to force with effect from 1 April 1962 by replacing the Indian Income Tax Act, 1922 which had remained in operation for 40 years. The present law of income tax is governed by the Income Tax Act, 1961, which has 298 sections and 4 schedules and is applicable to whole of India including the state of Jammu and Kashmir.