121. The power of a [Zila Panchayat] to impose a tax on circumstances and Property may 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 ro 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 [twelve thousand rupees] per annum ;
(c) the rate of tax shall not exceed three Naye Paise 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 section 128 of the United Provinces Municipalities Act 1916, by any municipal board or any notified area committee ;
(iii) income on which any tax has previously been imposed by any other [Zila Panchayat] under clause (a) sub-section (1) of section 119 ;
(iv) income on which any tax has previously been imposed under section 14 of the United Provinces Town Areas Act, 1914 ;
(v) income on which any tax has previously been imposed by any Nagar Mahapalika under section 172 of the Uttar Pradesh Nagar Mahapalika Adhiniyam, 1959.