PROFESSIONS, TRADES, CALLINGS AND 36 AINGS d 365 HE PUN” MPLOYMENTS TAXATION AC gi ACT, 1956, TABLE OF CONTENTS gections '
1. Short title, extent and commencement,
2. Definitions.
§ 3, Levy of tax.
.
4, Rate of tax.
5. Determination of tax. Eg 5-A. Act not to apply to Armed Forces, 6, Recovery of tax as arrears of Land Revenue.
7. Deduction of tax from certain servants.
g, Power to compel attendance for giving evidence or to call for documents.
.A, Offences and Penalties.
8-B, Income escaping assessment.
yer penalty where tax not paid within time.
3.C, Power to reco 9, Appeal and revision.
9-4. Proceedings before authorities under the Act to be judicial proceedings for certain purposes.
9-B, Power to exempt.
10, Bar to civil and criminal suits.
11. Power to make rules.
THE SCHEDULE © Scanned with OKEN Scanner 8, CALLING 367 pb. Act VII} PROFESSIONS, ‘TRADE 1956 ‘ AND EMPLOYMENT TAXATION _ PUNJAB PROFESSIONS, TRADES, C/ | THER EMPLOY MENTS TAXATION ACT. 19 san punsAB Act No. VII or 1956, ved the assent of the Governor of Punjab on the [Recelv April, 1956 and was first published in the ic 20 ernment Gazette (Extraordinary) of the i May, 1956) _)j—— eT canis 1| 2 3 ee Year| No Short title _ Whether affected by later legislation 1956 The Punjab Professions, ‘Amended by— Trades, Callings and Punjab Act No. 3 of 1957.2 Employments Taxation | Punjab Act No. XII of 1957° Act, 1956 Extended to the territories which _immediately before the'lst| November, 1956, were comprised in the State of Pepsu by Punjab Act No. 5 of 1957.4 Amended by Punjab Act No.3 of 1960.5 Amended by Punjab Act No. 10 of 1962.8 Amended by Punjab Act No. 7 of 1964. 7 Amended by the Punjab Reorganisation (Chandigarh) (Adaptation of Laws on State ~ and Concurrent Subjects) Order, 1968, 1 For Statement of Objects and Reasons, | see Panjab Government Gazette, (Extraordinary), 1956, page 539.
a For Statement of Objects and Reasons, see Punjab Government Gazette, (Extraordinary) , 1957, page 318. ' ;
3 For Statement of Objects and {Reasons, see Punjab Government Gazette (Extraordinary), 1957, page 694.
‘ For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1957, page 339, F 6 For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1959, page 1863.
* For Statement of Objects and Reasons, see Punjab Government Gazette raordinary), 1962, dated the 22nd April, 1962, « " For Statement of Objects and Reasons, see Punjab Government Gazette *traordinary), 1964, page 134.
(Ext © Scanned with OKEN Scanner *ESSIONS, TRADES, CALLINGS AND [1956 ; p soe SAUER EMPLOYMENTS TAXATION b, Act Vin AN profess trad .
a tax on pro essions, Ta es .
fo impose a " the benefit of the + ies Ulling, loyments for the bene fe) &venueg of and employ Punjab State.
the it enacted by the Legislature of the State of Pup;
in the Seventh Year of the Republic of India ag follow Jab rt title, extent I. (i) This Act may be called the Punja nd commence- 4 Trades, Callings and Employments Taxation Act, 6” ment,
(ii) It extends to the whole of the {Union territory of Chandigarh].
(ii) It shall come Into force? in the St Jab on such date as the State Government may by pn tifica.
tion in the Officia] Gazette appoint, Definitions, 2. In this Act, unless there is anything Tepugnant in the Subject or Context,— ‘@) “Prescribed”? m €ans prescribed by rules under this Act ;
(2) “total 8t0ss income” means aggregate of [gross] income derived from various _proemployments,
(c) “previous Year” means twelye months ending on the 31st March next Proceeding the year Ae :
(2) “person includes Hindu undivided family or an Incorporated Company ; Substituted for the Words “State of Punjab” by the Punjab Reorganisation (Chandigarh) (Adaptation of Laws On State and Co ncurrent Subjects) Order, 1968.
*The Act Came into force on Noti the 20th October, 1956, see Punjab Government fication No, nab Bye) 5546670, d ated the 20th October, 1956, published in Xtraordinary Punjag Gazette, ated 22nq October, 1956, -3of 1960, Section 2, Y Pu -10 of 1962.
"Substituted for the Word “‘in’? ‘ Dy Punjab Act No. 3 of 1960 and it shall be, and Shall be deemed always to haye been Substituted, © Scanned with OKEN Scanner pROFESSIONS, TRADES, CALLINGS, 3 p, Act vill AND EMPLOYMENTS TAXATION » 360 eb p ‘9° authority” in a particular are ing a | ade 9 ar areca means 2) “455s Eon authorised by the *[Central Governman to make any assessment under this Act.
son who carries on trade, either by Levy of tax.
3, gvery agent or representative, or who follows “_ sell OF or calling, or who 18 In employment, either pit ofession rt within the "Union territory of Chandia ily oF NP jable to pay [or each financial year “[or a part oy tox ill respect of such profession, trade, calling 0 .
“aployment " -ta4 that for the purpose of this section a person provider be deemed to be a person 1n employment.
The tax shall be levied at the rates specified in the Rates of tax.
gchedule annexed to this Act.
ayable by any person under this Act Determination of e tax Pp ] | ;
victermined with reference to his total gross tax.
shall be juring the previous year ; provided that the tax incore by any person shall not exceed two hundred and Pry rupees for any financial year.
4 Explanation.—In comp uting the total gross income of any person under this section—.
(a) the following expenses incurred by him in respect of a manufacturing concern shall excluded,—
(1) productive wages, that is to say, expenses on direct labour which can be measured and directly charged to a job, order or product;
(2) materials consumed, that is to say, expenses on direct materials,with all charges thereon, including carriage inwards, freight, dock ues 5 ——___ _ 3 _ Substituted i i sation (C stituted for ths words ‘State Government’’ by the Punjab Reorgani- 1968, (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) Order, a q ° Substituted for the words ‘State of Punjab” by ibid.
Tn ;
be, and shall Gee. Punjab Act No.3 of 1957, section 2, This amendment shall ‘ eemed always to have been inserted.
Bx i planation added by Punjab Act No, 3 of 1960, section 3 a © Scanned with OKEN Scanner 370 PROFESSIONS, TRADES, CALLINGs [1956; p AND EMPLOYMENTS TAXATION b, Act vn
(3) direct expenses of production that ; expenses consisting of ’ ‘Nat is to Say
(7) rent, rates, taxes, Insurance of factory,
(77) gas, fuel , lighting and hearing
(ii) patent fees and royalties ;
(iv) non-productive wages of StOre-ke firemen, enginemen, time-keepey fares clerks, superintendents and Man: ory factory ; and _ -—
(v) repeirs, renewals and depreciation of machinery, tools, lands and by;
(b) the fo!lowin 8 €xpenses incurred by him in resp of a trading concern shal] be excluded :— eet
(i) purchases ;
(ii) carriage inwards ;
(iii) wages ; and
(iv) other direct expenses not being se'ling and office expenses ; and.
(c) an amount equal to five per centum of the aggregate gross income derived by a person from the profession of calling, if he maintains an office or establishment in connection there- with in the ordinary course of such profession or calling, shall be excluded.) _ Act not to apply [5-A. The provisions of this Act shall not apply fo Armed Forces. t9 a member of the Armed Forces of India.]} . : be, ? Added by Punjab Act No, XII of 1957, section 2, This section shall and shal! be deemed always to have been added, = | © Scanned with OKEN Scanner
11. PROFESSIONS, TRADES, CALLIN » CALLING:
AND EMPLOYMENTS TAXATION 39) yayable under this ‘Act is not pald Recovery of 1 iT TSTY OF (ae any {ax ; 8
6. ty Kane as May be fixed by rules under this Act “tr of land ith he recoverable as an arrear of land revenue, '§ » sha it § f pe i the case of persons serving under the State Dedueti . overnment or in the employment of loca ie wae .
ss cen ape (ax which avy such person in employment js vane qu hor shall be deducted at the source in the manner jadle : od with reference to his total gross income.
rese ‘ P unt of the tax deducted in respect of -rso0s in the Oy overnment Treas by th ted into Go asury by the local e creat ct ned within fifteen days of such deduction, aut 4 it shall be liable to pay. interest on the eq! WwW 4 ote Ps deducted at 6 per cent per annum.
ment of any local authority shall / 1) The assessing authority may require any Powel to comps :
f his tot | : attendance for erson to file a return O is total gross income and to giving evidence or m to give evidence or produce documents _ for docu- Mttend before hi inthe manner prescribed for the purpose of determining such person's liability under this Act.
(2) Such person shall be legally bound to attend and give evidence or to produce the document if in his possession or power, as the case may be, at the place and time specified in the notice, and whoever is required to produce a document may either attend to produce it or cause it to be produced.
18-A. Any person liable to pay tax under this often Act who— WB dan! ;
rn as required by sub-
(a) fails to submit a retu r submits a false section (/) of section 8 0 return ; or
(b) falls to appear and given evidence or to produce ddcuments either in person OF through his agent before the Assessing Authority ; or unts, registers
(c) knowingly produces incorrect acco nishes !nof documents, or knowingly fur correct information;
be Ins : erted by Punjab Act No. XII of 1957, section 3.
© Scanned with OKEN Scanner Income escaping 18-B. If in consequence of definite ; f » assessment — 372 PROFESSIONS, TRADES, CALLINGS [1956; Pb Act: - Ac AND EMPLOYMENTS TAXATION t Vit be assessed summarily to the maximum Tate ; specified in the Schedule annexed to this Act] of tax nfo which has come into his Possession, the assessin horit discovers that a person has escaped assessment Or y under-assessed for any financial year, the assesgj 8 author ty may, at any time Within three years of the en Power to recover *[8-C. Where any person fails to pay Within such Penalty bbe x time as may be fixed by rules under this Act an not paid within 4 . Ome.
Y amount ue from him On account of the tax assessed on hi M under this Act, the assessing authority ay recover from such the tax so assessed :
Provided that no such penalty shall be recovered from such person witho ut affording a reasonable opportunity O him and unless the assessing authority is satisfied that Appeal and revi he has wilfully failed to Pay the tax,] Sloan.
9. (1) Any Person who has been informed of his liability , Pay the tax under this Act or the penalty Tecoverable under Section 8-C] or who ig otherwise aggrieved by an order, passed undey this Act or the rules made thereunder may, within thirty days from the date of receipt Y him of the information of the order, make an appeal to Such authority as may be prescribed in this behalf by the [Cen that authority Shall, thereupon, it may think fit after affording a reasonable °pportunity to th © parties affected thereby of Tovided that 10 appeal shall be entertained unless the appellate authority is Satisfied that ‘[the amount of ie and the penalty, if any, Tecoverable] assessed on } the a8Sessee has been paid, ] Inserted by Punjab Act No. 3 of 1960 *Inserted by Punjab Act No, 7 54 3 u Stltued for the Words “‘y » Section 4, : sreanisatate Government” by the Punjab Reams et 4ws on State and Concurrent Subjects) tuted ad 3 of 1960, section 5, of 1964,0.40stituted for the words “ mount of tax assessed”, by Punjab Act No. 7 a © Scanned with OKEN Scanner PROFESSIONS, TRADES. ¢: . pb. Act VIN] ES, CALLING! 1956 AND EMPLOYMENTS TAXATION ids Any person aggrieved by an order made subecection (1) may, within thirty days from the date of the eceipt by him of the order apply to ‘[Central Government] ~ to such authotly as the [Central Government] may, by notification, appoint in this tehalf, for its revision. The Central Government] or the authority so appointed, as the case may be, may (hereupon pass such order in relation thereto as it may think fit after giving the applicant and such other person as may be affected by the order a reasonable opportunity of being heard.
2[(3) Subject to the provisions of sub-section (2), the Cental Government] or the authority appointed in this behalf by the [Central Government] may, on its own motion or on an application made to it, call for the record of any proceedings which are pending before or have been disposed of by any assessing or appellate authority under this Act for the purpose of satislying itself as to the legality or propriety of such proceedings or of any order made therein and pass such order in relation thereto as it may deem fit :
Provided that no order shall be made under this subsection which adversely affects the rights of a person without giving such person a reasonable opportunity of being heard.]
_ .[9-A. Any proceeding before any authority under Proceedings before this Act shall be deemed to be a judicial proceeding within the Act to be the meaning of sections 193 and 228 and for the purpose udicial proces of section 196 of the Indian Penal Code. purposes.
_, 9-B. Where the 1[Central Government] is of the Powsr to cxempt.
opinion that it is necessary or expedient, in the public interest so to do, it may, by notification and subject to such conditions, if any, exempt any person or class of persons from the operation of this Act.]
sas Bar of Civil and
10. No civil court shall entertain any suit instituted Criminal suits.
or application made to obtain a decision or orders on the liability of any person to pay the tax and no prosecution, Substituted for the words “State Government” by the Punjab Reorganisation (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) Order, 1968.
*Added by Punjab Act No. 3 of 1960.
* Inserted by Punjab Act No. 7 of 1964.
eed © Scanned with OKEN Scanner 374 1986 Pb. Act VII] PROFESSIONS, +;
AND EMPLOYMENTs 78, ( suit or other proceedings shall lie servant for anything done, or intended tan" any faith under this Act or any rule made the, dong jbl eundgr 804 Power to make I. (7) The '[Central Governmen; m , for carrying into effect the provisions of thy. make ty § Ct. fy
(2) In particular and without prejud:
of the foregoing power, the Centra C oo the Benes make uy In regard (o— ment] me a) all matters which are requi J under this Act ; * Aired to be Prescribe,
(b) the manner in which s ers ass ay pay the *[tax and the penalty fr, he liable to . this Act, shall be informed of his tabi ! AGn Y;
(c) the time at which, and the m ae *[taxcand the penalty)if any,) pays the this Actshallbe paid: - ”” under _\@)-the conditions subject:to which the t po ane this Act or part thereof ma (dead; : es o> 64. 6 TG +f AX payable y be refup.
(e) the procedure for claiming a refund of the tay payable under this Act or part thereof;
07) ig eae Te | '
(g) the remission in whole or in part of the tax payable under this ‘Act’: and ‘[(h) the procedure to be followed in hearing appeals and applications for'revision under this Act, the fees to be paid in respect of, and the documents which shall accompany, such appeals and applications and the period within which they Shall be filed.] pats — : 1Substituted for the words ‘State Government’® by the Punjab Reorgans yd (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) 9, * “Rules framed” vide Punjab Government notification No. 864-FD(U1)-66/ 666% the 20th October, 1956.
*Substituted for the word ‘tax'’ by Punjab Act No, 7, of 1964.
*Clause (f) omitted by Punjab Act No. 7 of 1964, "Substituted by Punjab Act No. 10 of 1962.
— © Scanned with OKEN Scanner py, Act VIT| PROFESSIONS, TRADES, CALLINGS 375 (956 AND BMPLOYMENTS TAXATION THE SCHEDULE (See Section 4) —— —_ i 7 - —— Rate of tax Amount of tax eee ~ Rs Where the total gross annual income—
(1) exceeds Rs 6,000 but does not exceed Rs 8,500 120
(2) exceeds Rs 8,500 but does not exceed Rs 13,500... 150
(3) exceeds Rs 13,500 but does not exceed Rs 25,000... 200
(4) exceeds Rs 25,000 _
Provided that the tax will not be levied on a Hindu undivided family not liable to income-tax under the Income-tax Law as in force from time to time:
Provided further that where tax is payable in respect of a part of the financial year, it shall be an amount bearing to the tax payable for the whole of the financial year the same proportion as the period in respect of which the tax is payable bears to the financial year.]
Added by Punjab Act No, 3 of 1957, Section 3. These words shall be, and shall be deemed always to have been added.
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