Tamil Nadu Urban Local Bodies (Amendment) Act, 1999*
| [Tamil Nadu Act No. 54 of 1999] | [14th December, 1999] |
An Act to amend the Tamil Nadu Urban Local Bodies Act, 1998
Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Fiftieth Year of the Republic of India as follows:-
* Received the assent of the Governor on the 14th December, 1999 and published in the Tamil Nadu Government Gazette, Extraordinary.
1. Short title and commencement.- (1) This Act may be called the Tamil Nadu Urban Local Bodies (Amendment) Act, 1999.
(2) It shall come into force at once.
2. Amendment of section 2.- In section 2 of the Tamil Nadu Urban Local Bodies Act, 1998 (Tamil Nadu Act 9 of 1999) (hereinafter referred to as the principal Act), in clause (20), for the expression "as it notified", the expression "as is notified" shall be substituted.
3. Amendment of section 3.- In section 3 of the principal Act,-
(1) in sub-section (1),-
(a) after the expression "by notification", the expression "declare his intention" shall be inserted;
(b) for the expression "constitute any local area", the expression "to constitute any local area" shall be substituted;
(2) in sub-section (2),-
(a) in clause (b), for the expression "under sub-section (1)", the expression "under sub-section (1) or under clause (a) of this sub-section" shall be substituted;
(b) in clause (d), after the expression "by notification", the expression "the constitution of" shall be inserted;
(c) in clause (f), for the expression "The inclusion of any village panchayat", the expression "The constitution of any village panchayat as a municipality or the inclusion of any village panchayat" shall be substituted.
4. Amendment of section 10.- In section 10 of the principal Act,-
(1) in sub-section (2), for the expression "Unless the Tamil Nadu State Election Commission otherwise directs, no casual vacancy", the expression "No casual vacancy" shall be substituted;
(2) in sub-section (3), the expression "but subject to the provisions of sub-section (2)" shall be omitted.
5. Amendment of section 12.- In section 12 of the principal Act,-
(1) in sub-section (4),-
(a) for the expression "while undergoing the sentence", the expression "while the sentence is in force" shall be substituted;
(b) for the expression "five years", the expression "six years" shall be substituted;
(2) in sub-section (5), for the expression "five years", the expression "six years" shall be substituted;
(3) after sub-section (7), the following sub-section shall be added, namely:-
"(8) If the Tamil Nadu State Election Commission is satisfied that a person,-
(a) has failed to lodge an account of election expenses within the time and in the manner required by or under this Act, and
(b) has no good reason or justification for the failure.
the Tamil Nadu State Election Commission shall, by order published in the Tamil Nadu Government Gazette, declare him to be disqualified for being elected as, and for being, a councillor or chairperson, as the case may be, and any such person shall be disqualified for a period of three years from the date of the order.".
6. Amendment of section 25.- In section 25 of the principal Act, in sub-section (3), for the expression "by the presiding officer by", the expression "by the presiding officer" shall be substituted.
7. Amendment of section 28.- In section 28 of the principal Act, for the expression "requisition on such buildings", the expression "requisition such buildings" shall be substituted.
8. Amendment of section 31.- In section 31 of the principal Act, in sub-section (2), for the expression "guilty by an agent", the expression "guilty by act of an agent" shall be substituted.
9. Amendment of section 34.- In section 34 of the principal Act, in sub-section (1), for the expression "present at that meeting and elected by the councillors present at that meeting", the expression "in the panel referred to in section 47 in the order of their names mentioned in that panel" shall be substituted.
10. Amendment of section 37.- In section 37 of the principal Act, after sub-section (1), the following sub-section shall be inserted, namely:-
"(1-A) The councillors shall be elected by the persons whose names appear in the electoral rolls relating to the wards of the municipality in accordance with such procedure as may be prescribed.".
11. Amendment of section 38.- In section 38 of the principal Act, in sub-section (2), for the expression "under this section", the expression "under clause (a) of sub-section (1)" shall be substituted.
12. Amendment of section 42.- In section 42 of the principal Act, in sub-section (4), for the expression "sub-section (2) or involves", the expression "sub-section (2) involves" shall be substituted.
13. Amendment of section 46.- In section 46 of the principal Act, to sub-section (1), the following proviso shall be added, namely:-
"Provided that the Chairperson shall have the right to vote in the election of the Deputy Chairperson.".
14. Amendment of section 49.- In section 49 of the principal Act, in sub-section (1), the following shall be added at the end, namely:-
"The powers and functions of the wards committee shall be such as may be notified by the council.".
15. Amendment of section 50.- In section 50 of the principal Act,-
(1) for the expression "municipality" wherever it occurs, except in the opening portion of clause (ii) of sub-section (1), the expression "council" shall be substituted;
(2) in sub-section (8), for the expression "Councillors", the expression "councillors, the Chairperson and the Deputy Chairperson" shall be substituted.
16. Amendment of section 52.- In section 52 of the principal Act, in sub-section (1), in clause (a), for the expression "disobey or act", the expression "disobeys or acts" shall be substituted.
17. Amendment of section 57.- In section 57 of the principal Act,-
(1) sub-section (6) shall be omitted;
(2) sub-section (7), the following expression shall be added at the end, namely:-
"and he shall report the action taken under this section and reasons therefor to the council at its next meeting.";
(3) in sub-section (8), the expression "and he shall report the action taken under this section and reasons therefor to the council at its next meeting" shall be omitted.
18. Substitution of section 59 and 60.- For sections 59 and 60 of the principal Act, the following sections shall be substituted, namely:-
"59. Classification of officers and servants in municipal services.- (1) The municipal services mentioned in sub-section (1) of section 58 shall consist of such classes of officers and servants of the municipality, and each such class shall consist of such categories of posts, as may be prescribed.
60. Recruitment and conditions of service.-The recruitment and other conditions of service of officers and servants to the posts included in the municipal services mentioned in sub-section (1) of section 58, shall be such as may be prescribed:
Provided that the provisions of this section shall not apply to the Government servants employed in the municipality.".
19. Amendment of section 63.- In section 63 of the principal Act in sub-section (2), for the expression "audited by a qualified auditors", the expression "audited by qualified auditors" shall be substituted.
20. Amendment of section 80.- In section 80 of the principal Act, in sub-section (1), after clause (a), the following clause shall be inserted, namely:-
"(aa) Profession tax;".
21. Amendment of section 81.- In section 81 of the principal Act, for sub-sections (3) and (4), the following sub-section shall be substituted, namely:-
"(3) The resolution passed by the council shall be published in such manner as may be prescribed.".
22. Amendment of section 87.- In section 87 of the principal Act,-
(1) for clause (c), the following clauses shall be substituted, namely:-
"(c) buildings used for educational purpose including hostels attached thereto;
(cc) places used for the charitable purpose of sheltering the destitutes or animals and orphanages, homes and schools for the deaf and dumb, asylum for the aged and fallen women and such similar institutions, run purely on philanthropic lines as are approved by the council in accordance with such rules as may be prescribed;";
(2) in the proviso, for the expression "clauses (a), (c) and (e) shall be deemed to exempt any building or land from property tax any building", the expression "clauses (a), (c), (cc) and (e) shall be deemed to exempt any building or land from property tax where any building" shall be substituted.
23. Amendment of section 92.- In section 92 of the principal Act, in the second proviso, for clause (b), the following clause shall be substituted, namely:-
"(b) of an election to the Parliament, Legislative Assembly or a Municipality; or.".
24. Amendment of section 94.- In section 94 of the principal Act, in sub-section (1), in clause (b), after item (v) and the entries relating thereto, the following items and entries shall be added, namely:-
| "(vi) Release of Benami right in favour of persons excepted under sub-section (3) of section 4 of the Benami Transactions (Prohibition) Act, 1988 (Central Act 45 of 1988) of immovable property. | The market value of the property as set forth in the instrument, and in a case where the market value is finally determined by any authority under section 47-A of the Indian Stamp Act, 1899 (Central Act II of 1899), the market value as so determined by such authority. |
| (vii) Settlement of immovable properly other than in favour of a member or members of a family. | The market value of the property as set forth in the instrument, and in a case where the market value is finally determined by any authority under section 47-A of the Indian Stamp Act, 1899 (Centra Act II of 1899), the market value as so determined by such authority. |
Explanation.-For the purpose of this item, the word "family" shall have the same meaning as in the Explanation to item (i) of clause (a) of Article 58 in Schedule I to the Indian Stamp Act, 1899 (Central Act II of 1899), as amended by the Indian Stamp (Tamil Nadu Amendment) Act, 1981 (Tamil Nadu Act 42 of 1981).".
25. Amendment of section 100.- In section 100 of the principal Act, to sub-section (1), the following proviso shall be added, namely:-
"Provided that no appeal shall be entertained by the Taxation Appeals Committee unless the appellant deposits with the town panchayat or the municipality, as the case may be, the entire amount assessed by the Commissioner in the revision.".
26. Amendment of section 102.- In section 102 of the principal Act, in sub-section (1), for the expression "as may be prescribed. Such licence shall be renewed every year", the following expression shall be substituted, namely:-
"and for such period not exceeding three years having regard to the nature of trade or business, as may be prescribed. Such licence may be renewed for a period not exceeding the period for which it was granted.".
27. Amendment of section 114.- In section 114 of the principal Act, in clause (b), for the word "and", the word "or" shall be substituted.
28. Amendment of section 115.- In section 115 of the principal Act, in sub-section (3), for the expression "or such other order", the expression "or pass such other order" shall be substituted.
29. Insertion of new Chapter VI-A.- After Chapter VI of the principal Act, the following Chapter shall be inserted, namely:-
"CHAPTER-VI-A.
TAX ON PROFESSION, TRADE, CALLING AND EMPLOYMENT.
117-A. Definitions.-For the purposes of this Chapter,-
(a) "employee" means a person employed on salary and includes,-
(i) a Government servant receiving pay from the revenue of the Central Government or any State Government;
(ii) a person in the service of a body whether incorporated or not, which is owned or controlled by the Central Government or any State Government, where such body operates within the municipal area even though its headquarters may be outside the municipal area; and
(iii) a person engaged in any employment by an employer, not covered by subclauses (i) and (ii);
(b) "employer" in relation to an employee earning any salary on a regular basis under him means, the person or the officer who is responsible for disbursement of such salary and includes the head of the office or any establishment as well as the Manager or Agent of the employer;
(c) "half-year" shall be from the 1st day of April to the 30th day of September and from the 1st day of October to the 31st day of March of a year;
(d) "month" means a calendar month;
(e) "person" means any person who is engaged actively or otherwise in any profession, trade, calling or employment in the State of Tamil Nadu and includes a Hindu undivided family, firm, company, corporation or other corporate body, any society, club, body of persons or association, so engaged, but does not include any person employed on a casual basis;
(f) "tax" means the tax on profession, trade, calling and employment levied under this Chapter.
117-B. Levy of profession tax.- (1) There shall be levied by the council a tax on profession, trade, calling and employment.
(2) Every company which transact business and every person, who is engaged actively or otherwise in any profession, trade, calling or employment within the municipal area on the first day of the half-year for which return is filed, shall pay half-yearly tax at the rates specified in the Table below in such manner as may be prescribed:-
THE TABLE
| Serial Number. | Average half-yearly income. | Half-yearly tax. | |
| (1) | (2) | (3) | |
| From Rs. | To Rs. | Rs. | |
| 1 | Upto Rs. 21,000 | .. | Nil |
| 2 | 21,001 | 30,000 | 60 |
| 3 | 30,001 | 45,000 | 150 |
| 4 | 45,001 | 60,000 | 300 |
| 5 | 60,001 | 75,000 | 450 |
| 6 | 75,001 and above | .. | 600 |
(3) The rate of tax payable under sub-section (2) shall be published by the Commissioner in such manner as may be prescribed.
(4) Where a company or person proves that it or he has paid the sum due on account of the tax levied under this Chapter or any tax of the nature of a profession tax imposed under the Cantonments Act, 1924 (Central Act II of 1924) for the same half-year to any local authority or cantonment authority in the State of Tamil Nadu, such company or person shall not be liable by reason merely of change of place of business, exercise of profession, trade, calling or employment, or residence, to pay the tax to any other local authority or cantonment authority.
(5) The tax leviable from a firm, association or Hindu undivided family may be levied on any adult member of the firm, association or family.
(6) Where a person doing the same business in the same name in one or more places within the municipal area, the income of such business in all places within the municipal area shall be computed for the purpose of levy of tax and such person shall pay the tax in accordance with the provisions of this Chapter.
(7) Where any company, a corporate body, society, firm, body of persons or association pays the tax under this Chapter, any director, partner or member, as the case may be, of such company, corporate body, society, firm, body of persons or association shall not be liable to pay tax under this Chapter, for the income derived by such director, partner or member from such company, corporate body, society, firm, body of persons or association:
Provided that such director, partner or member shall be liable to pay tax under this Chapter for the income derived from other sources.
(8) Every person who is liable to pay tax other than a person earning salary or wage shall furnish to the Commissioner a return in such form, for such period within such date and in such manner as may be prescribed:
Provided that subject to the provisions of sub-sections (10) and (11), such person may make a self-assessment on the basis of average half-yearly income of the previous financial year and the return filed by him shall be accepted without calling for the accounts and without any inspection.
(9) Every such return shall accompany with the proof of payment of the full amount of tax due according to the return and a return without such proof of payment shall not be deemed to have been duly filed.
(10) Notwithstanding anything contained in the proviso to sub-section (8), the Commissioner may select ten per cent of the total number of such assessment in such manner as may be prescribed for the purpose of detailed scrutiny regarding the correctness of the return submitted by a person in this connection and in such cases final assessment order shall be passed in accordance with the provisions of this Chapter.
(11) If no return is submitted by any person under sub-section (8) within the prescribed period or if the return submitted by him appears to the Commissioner to be incomplete or incorrect, the Commissioner shall, after making such enquiry as he may consider necessary, assess such person to the best of his judgment:
Provided that before taking action under this sub-section, the person shall be given a reasonable opportunity of proving the correctness or completeness of any return submitted by him.
(12) Every person who is liable to pay tax under this section, other than a person earning salary or wage,-
(a) shall be issued with a pass book containing such details relating to such payment of tax as may be prescribed and if the pass book is lost or accidentally destroyed, the Commissioner may, on an application made by the person accompanied by such fee as may be fixed by the Council, issue to such person a duplicate of the pass book;
(b) shall be allotted a permanent account number and such person shall,-
(i) quote such number in all his returns to, or correspondence with, the Commissioner;
(ii) quote such number in all chalans for the payment of any sum due under this Chapter.
(13) The rate of tax specified under sub-section (2) shall be revised by the Council once in every five years and such revision of tax shall be increased not less than twenty-five per cent and not more than thirty-five per cent of the tax levied immediately before the date of revision.
117-C. Employer's liability to deduct and pay tax on behalf of the employees.-The tax payable by any person earning a salary or wage shall be deducted by his employer from the salary payable to such person, before such salary or wage is paid to him, in such manner as may be prescribed and such employer shall, irrespective of whether such deduction has been made or not when the salary or wage is paid to such person, be liable to pay tax on behalf of such person:
Provided that if the employer is an Officer of the State or Central Government, the Government may, notwithstanding anything contained in this Chapter, prescribe the manner in which such employer shall discharge the said liability.
117-D. Filing of returns by employer.- (1) Every employer liable to pay tax under this Chapter shall file a return to the Commissioner, in such form, for such period and by such rate as may be prescribed, showing therein the salaries paid by him to the employees and the amount of tax deducted by him in respect of such employees.
(2) Every such return shall accompany with the proof of payment of the full amount of tax due according to the return and a return without such proof of payment shall not be deemed to have been duly filed.
117-E. Assessment of the employer.- (1) The Commissioner, if satisfied that any return filed by any employer under sub-section (1) of section 117-D is correct and complete, shall accept the return.
(2) Where an employer has failed to file any return under sub-section (1) of section 117-D within the time or if the return filed by him appears to the Commissioner to be incorrect or incomplete, the Commissioner shall, after making such enquiry as he considers necessary, determine the tax due and assess the employer to the best of his judgment and issue a notice of demand for the tax so assessed:
Provided that before assessing the tax due, the Commissioner shall give the employer a reasonable opportunity of being heard.
117-F. Penalty and interest.- (1) In addition to the tax assessed under sub-section (11) of section 117-B or sub-section (2) of section 117-E in the case of submission of incorrect or incomplete return, the Commissioner shall direct the person or employer to pay by way of penalty of one hundred per cent of the difference of the tax assessed and the tax paid as per return:
Provided that no penalty under this sub-section shall be imposed after the period of three years from the date of the order of the assessment under this Chapter and unless the person affected has had a reasonable opportunity of showing cause against such imposition.
(2) On any amount remaining unpaid after the dates specified for its payment the person or employer shall pay, in addition to the amount due, interest at such rate not exceeding one percent per mensem of such amount for the entire period of default, as may be prescribed.
117-G. Appeal.- (1) Any person or employer aggrieved by any order or decision of the Commissioner in relation to the payment of tax (including penalty, fee and interest) may, within such time as may be prescribed, appeal,-
(a) to the Taxation Appeals Tribunal, in the case of Corporation;
(b) to the Taxation Appeals Committee, in the case of municipality or town panchayat.
(2) The decision of the Taxation Appeals Tribunal or the Taxation Appeals Committee, as the case may be, shall be final and shall not be questioned in any court of law:
Provided that no such decision shall be made except after giving the person affected a reasonable opportunity of being heard.
117-H. Exemptions.-Nothing contained in this Chapter shall apply to,-
(a) the members of the Armed Forces of the Union serving in any part of this State, to whom the provisions of the Army Act, 1950, (Central Act ??? of 1950) the Air Force Act, 1950 (Central Act ??? of 1950) or the Navy Act, 1957 (Central Act ??? of 1957) applies;
(b) the members of the Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 (Central Act ??? of 1949) applies and serving in any part of this State;
(c) physically disabled persons with total disability in one or both the hands or legs, spastics, totally dumb or deaf persons or totally blind persons:
Provided that such physical disability shall be duly certified by a Registered Medical Practitioner in the service of the Government not below the rank of a Civil Surgeon;
(d) the members of the Central Industrial Security Force to whom the Central Industrial Security Force Act, 1968 (Central Act 56 of 1968) applies and serving in any part of this State.
"117-I. Collection of Profession tax during certain periods.- (1) Notwithstanding the repeal of the Tamil Nadu Tax on Professions, Trades, Callings and Employments Act, 1992 (Tamil Nadu Act 24 of 1992) (hereafter in this section referred to as the 1992 Act) by the Tamil Nadu Municipal Laws (Second Amendment) Act, 1998 (Tamil Nadu Act 59 of 1998), the rates of tax on professions, trades, callings and employments specified in the Schedule to the 1992 Act shall continue to apply for the period commencing on the 1st day of April 1992 and ending with the 30th day of September 1998 for the levy and collection of such tax for the said period, where the tax due under the 1992 Act has not been paid for the said period.
(2) The provisions of this chapter, other than the rates of tax specified in sub-section (2) of section 117-B and the provisions relating to penalty and interest, shall mutatis mutandis apply to the levy and collection of tax for the period mentioned in sub-section (1).
(3) The arrears of tax under the 1992 Act shall be paid in six equal half-yearly instalments in such manner and within such period as may be prescribed.".
30. Amendment of section 123.- In section 123 of the principal Act, in sub-section (2), for the expression "as may think fit", the expression "as he may think fit" shall be substituted.
31. Amendment of section 128.- In section 128 of the principal Act, for the expression "land belonging to the departments of the Central or State Governments" occurring in three places, the expression "land belonging to the municipality or the departments of the Central or State Governments" shall be substituted.
32. Amendment of section 133.- In section 133 of the principal Act,-
(1) in sub-section (6), after the expression "grant the permission", the expression "or refuse to grant the permission for reasons to be recorded in writing" shall be inserted;
(2) in sub-section (10),-
(a) for the expression "sub-section (9)", the expression "sub-section (6) or (9)" shall be substituted;
(b) for the expression "Government", the expression "Director" shall be substituted;
(c) for the proviso, the following proviso shall be substituted, namely:-
"Provided that the Director may, within a further period of forty-five days, admit an appeal preferred after the expiration of the first mentioned period of forty-five days, if he is satisfied that the petitioner had sufficient cause for not preferring the appeal petition in the first mentioned period.";
(3) in sub-section (11), for the expression "Government", the expression "Director" shall be substituted.
33. Insertion of new section 163-A.- After section 163 if the principal Act, the following section shall be inserted, namely:-
"163-A. Declaration of prohibited area.- (1) Subject to the provisions of any other law for the time being in force, the Government, with a view to protect water for drinking purpose drawn from any water source used or maintained by a municipality from being polluted or to augment water supply and having regard to the location of the water source and such other factors relating thereto as may be prescribed, may by notification in the Tamil Nadu Government Gazette, declare such area, as may be prescribed around such water source, as a prohibited area.
(2) Upon such declaration, no person shall sink well including bore well or set up pump-set to pump water from any source or quarry and or carry out any development on any land in the prohibited area.
(3) The provisions of this section shall not apply to any work carried out by a municipality in connection with water source.".
34. Amendment of section 176.- In section 176 of the principal Act, in sub-section (2), for the expression "used for public purposes", the expression "used for residential purposes or for public purposes" shall be substituted.
35. Insertion of new section 178-A.- After section 178 of the principal Act, the following section shall be inserted, namely:-
"178-A. Declaration of litter-free zone.- (1) The council may, by notification in the District Gazette, declare any area, within the limits of the municipality, as a litter-free zone.
(2) Upon such declaration, no person shall allow or pass or throw away any refuse, substance, trade effluent, wastage, solid waste, rubbish or garbage into any litter-free zone except into the receptacle provided in that area.
(3) Where any person violates any of the provisions of sub-section (2), the Commissioner may impose a fine not exceeding rupees five hundred:
Provided that no fine under this sub-section shall be imposed unless the person affected has had a reasonable opportunity of showing cause against such imposition.".
36. Amendment of section 199.- In section 199 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely:-
"(2) The council may also make provision in the by-laws and regulations to impose fine not exceeding rupees five thousand for violation of such by-laws and regulations in accordance with such rules as may be prescribed.".