Page:Indian Journal of Economics Volume 2.djvu/332

 818 8. M. PA(AR discon[inued and [he Governmen[ of India began [o build ils own railways and irriga[ion sys[ems. All [his mean[ an enormous increase in [he s[erling deb[ of India. Finally [he direc[ laxalien introduced in 1860 has been con[inued and developed Jill a permanen[ income lax was es[ablished in 1886. The salt duly was decreased and made uniform a two rupees a maund (82r lbs.) throughout the country. Not until 1907 was it substantially reduced so as to make healthful living possible for the poorer classes.  II. DIRECT TAXATION SINCE 1860 1. The law o! 1860 was the part of the pensate the losses trading interests, Emergency the now Income /'az.-The income tax direct result of the desire on Imperial Government to corn- suffered by the British and other and also to make up he deficit. For  first time in the hisbory of the world it was demonstrated that India, an oriental country was ready o meet with equanimity and courage the greats[ engine of western finance--a modern income tax. () Provisions nd rates. The Indian Income Tax Act of 1850 follows very closely its British model, that being .the only successful income tax then in operation. It differs, however, from its English proto- type in duration and adaptation to local conditions. It is an act "for imposing duties on profits arising from property, professions, trades and offices." It contains four schedules as opposed to the five in the British Act, 1. Profits which are as follows:-- aad gains of every kind arising from lands and houses in India, thus combining the profession, trade or all British schedules A and B. 2. Annual profits from any employment in India irrespective of nationality. The new duty wss fixed at Be. 1 per msund. raised to R. 1-4-0 for wsr purposes. In 1916 this duty was sssin