Chapter 1

INCOME TAXATION IN INDIA - RETROSPECT

I. Taxation Under the East India Company.

In 1765, the British East India Company obtained

from the Emperor of Delhi the Diwani of Bengal, Bihar

and Orissa, by which it secured the right to collect

and administer the revenues of the said territories.

Soon after, the British Parliament began to assert its

control over the political, commercial and financial

affairs of the Company. In 1773, the Regulating Act

was passed. It was followed by the 'Pitt's India it*

of 176i*, which provided for the establishment of a

Board of Commissioners in England - popularly known as

the Board of Control - to supervise the civil and

military Government of the Company and its revenues.