• The Central Board of Direct Taxes (CBDT) observed the 161st Income Tax Day (also known as Aaykar Diwas) on 24 July 2026
•  In India, the Income Tax Day is celebrated every year on July 24, as it was on 24 July 1980 that Income Tax was introduced for the first time in India by Sir James Wilson.
• The purpose of this tax was to compensate for the losses incurred by the British regime during the first war of independence against British Rule in 1857. July 24 was first celebrated as Income Tax day in 2010.
• The Income Tax Department of India celebrates its 167th Income Tax Day (Aaykar Diwas) with outreach events highlighting the theme “My Tax, My Contribution: Building a developed India”

• It is a statutory authority constituted under the Central Board of Revenue Act, 1963.
• It is a part of the Department of Revenue in the Ministry of Finance.
• The current Chairman of the Central Board of Direct Taxes (CBDT) in 2026 is Ravi Agrawal. 

Central Board of Direct Taxes Functions

• Its functions include formulation of policies, dealing with matters relating to levy and collection of direct taxes, and supervision of the functioning of the entire Income Tax Department. 
• CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation in tune with the policies of the Government.

Central Board of Direct Taxes Historical Background

• In 1924, a Board of Revenue was set up to make tax collection more efficient in British India. 
• Initially, the Board was in charge of both direct and indirect taxes.
• However, when the administration of taxes became too unwieldy for one Board to handle, the Board was split up into two, namely the Central Board of Direct Taxes and Central Board of Excise and Customs, with effect from 1.1.1964
• This division was formalized through the constitution of the two Boards under Section 3 of the Central Board of Revenue Act, 1963.

Central Board of Direct Taxes Structure
The CBDT is headed by a Chairman and also comprises six members, all of whom are ex-officio Special Secretary to the Government of India.

• Member (Income Tax)
• Member (Legislation and Computerization)
• Member (Revenue)
• Member (Personnel & Vigilance)
• Member (Investigation)
• Member (Audit & Judicial)

The Chairman is the co-ordinating head, and each of the members has been assigned a specialized function.
The Chairman and Members of CBDT are selected from Indian Revenue Service (IRS).