Section 116: Imposition of tax on circumstances and property

The power of a Board to impose a tax on circumstances and property shall be subject to the following conditions and restrictions, namely - (a) the tax may be imposed on any person residing or carrying on business in the rural area: provided that such person has so resided or carried on business for a total period of at least six months in the year under assessment; (b) no tax shall be imposed on any person whose total taxable income is less than three hundred rupees per annum; (c) the rate of tax shall not exceed four pies in the rupee on the total taxable income; and (d) the total amount of tax imposed on any person shall not exceed such maximum (if any) as may be prescribed by rule. Explanation. - For the purpose of this section taxable income means estimated income, but shall not include income of the following classes. (i) Agricultural income as defined in the Indian Income-Tax Act, 1922, (ii) income on which any tax has previously been imposed under the Rajasthan Town Municipalities Act, 1951, (iii) income on which any tax has previously been imposed by any other Board under section 115: Provided that in notified and town areas the taxation shall take the form of a contribution from the funds of the notified or town area. This contribution shall be fixed by the Chairman of the Board and of the notified or town area committee in consultation with due regard both to the services rendered by the Board in each case to the said notified or town area and to the available funds of that area. In case of disagreement between the two Chairman the matter shall be referred to the Director of Local Bodies, whose decision shall be final. The words carrying on business do not apply to service under Government or a local authority.