Here are some comments a friend offered, "Dear KRR,this source says IT Act was only for 5 years from 1860 and lapsed in 1865.Then back in 1886.  " The Income Tax history in modern India dates back to 1860. In this year first Income Tax Act was introduced and which remained in force for a period of 5 years. This Act lapsed in 1865. Thereafter Act-II of 1886 was in force. This Act of 1886 was the improved version. It introduced the definition of agricultural income and the exemption it granted in respect of agricultural income has continued to be a feature of all subsequent legislations." As an important aside-- it was fun to learn history from venerable TKS(remembering him as my Guru number one).When,in UK, Govt tried to increase IT in late 1900 -1910s there was opposition from House of Lords.At that time Lords had the same power as Commons.When Lords were intransigent the Govt threatened to add more Lords who would be in favour of IT.This was and is still Govt privilege.This weapon worked and Lords agreed.Subsequently,the power of Lords in matters of financial acts was curtailed.They can only discuss the budget,cannot vote.India follows the same pattern.Rajyasabha has no financial powers. This is from memory,but the gist is correct. -MV