Indian Journal of Economics April 1937

If we take the Bengal Income-tax figures for 1933-34 the outstanding fact in the report is that it is the assessee who earns between 3 500 and 7 500 rupees per annum who is the backbone of the province and so large is his preponderance that in spite of the fact that higher classes of assessees pay higher rates he is the backbone of the tax-paying classes. [...] tht problem of the division of the proceeds of the tax on income between the Provinces and the Central Government that was examined by the Percy Committee. [...] By reason of the levying of a super-tax on the profits of Companies as an additional income-tax but on a different basis they got the ludicrous position in the case of a company which has Preference Shares on which the dividends exceed half a lakh of rupees that the taxation which is borne by the holders of the Ordinary Shares of that company is so arranged that the smaller the rate of dividen [...] If the Incomtax officer is in doubt as to the proper interpretation of the Act he may refer to the Commissioner but let the assessee who is aggrieved by an order feel that he has a genuine appeal to make to an officer who has no concern with the state of the revenue and is charged only with the duty of interpreting the law without favour in exactly the same way as the civil courts are charge [...] This is due firstly to the recent lowering of the exemption limit; secondly to the greater industrial development and prosperity oL the business classes and lastly to the efficiency of the Incomtax Department.