The businessman who created India’s income tax structure, was forgotten after death

• Wilson is called the father of the budget-income tax system in India

• Scotland-born business-economist died in Calcutta

James Wilson was a Scottish businessman, economist and politician. He founded a famous magazine like The Economist, Chartered Bank. He is called the father of the budget and income tax system in India. But when this eminent economist died in Calcutta (now Kolkata), he was buried like a normal person and people forgot.

A tax officer discovered grave

CP Bhatia, a joint commissioner of the Income Tax Department, who is research obsessive about the history of tax, found his grave in Kolkata in the year 2007 and once again publicized his achievements to the world.

Born in scotland

James Wilson was born in Havik, a small town in Scotland in 1805. His father, William Wilson, owned a textile mill. His mother died only when James was young. He studied economics and got a job in a hat factory. But when he was 19 years old, his family shifted to London, UK.

All the brothers of the family together established a factory there. Wilson had great success in business and in 1837, his net worth had reached 25000 pounds. But in the economic crisis of the same year he lost most of his wealth. He sold most of his property in 1839 to avoid bankruptcy. He then started Chartered Bank of India, Australia and China in 1853. In 1969, it was merged with Standard Bank and changed to Standard Chartered Bank.

He also tried his hand at journalism and opposed giving special facilities to the Church of England. After this, he wrote several articles related to currency, revenue etc. in newspapers. In the year 1843, he himself started a newspaper called ‘The Economist’, which is today Britain’s prestigious Economic Weekly. He was the sole owner and chief editor of this newspaper for about 16 years. Karl Marx also noticed an article written by him in April 1848 and criticized it, saying that he had no understanding of profits and workdays.

Enter politics

Wilson became a member of the House of Commons in Britain’s Parliament in 1847 on behalf of the Liberal Party. In view of his economic experiences, in 1848, the then Prime Minister Laud John Russell made him secretary of the Board of Control which supervised the East India Company. Subsequently, from 1853 to 1858, he worked as Financial Secretary in the UK Ministry of Finance. After this, he again became an MP.

Start of budget and tax structure in India

Wilson resigned from Parliament in August 1859 as he was made the Financial Secretary of the Council of India. Queen Victoria sent him to establish a tax structure in India, the introduction of paper currency and to repair India’s financial system. It is said that Britain had suffered a great economic loss from the first Indian revolution of 1857, so the Queen sent James Wilson. He was made a member of the Viceroy’s Council of Finance in Calcutta, which was a post similar to the Finance Minister at that time.

He introduced the income tax system. This system came into force on 24 July 1860, so this day is celebrated as Income Tax Day in India. His budget statement of 1859 is considered India’s first budget speech.

Died in calcutta

Wilson presented a budget that benefited Britain greatly. He died a year later. In fact, that year Calcutta, the then capital of the country, was very hot and they refused to go anywhere else. He suffered from dysentery and died in August 1860 in just 55 years. Such a famous person was buried like a normal man in a burial ground in Malik Bazar, Calcutta.

His grave was discovered in the year 2007 when CP Bhatia, a Joint Commissioner of Income Tax Department, was doing research to write a book on tax history of India. Due to Bhatia’s efforts, the place of his grave was repaired and a stone named after him was planted there.