PROFESSIONS, TRADES, CALLINGS AND 36 AINGS d 365 HE PUN" MPLOYMENTS TAXATION AC gi ACT, 1956,
TABLE OF CONTENTS
gections '
1. Short title, exte nt and commencem ent,
2. Definitions. §
3, Levy of tax.
.
4, Rate of tax.
5. Determination of tax.
Eg
5-A. Act not to a pply to Armed For ces,
6, Recovery of ta x as arrears of L and Revenue.
7. Deduction of tax from certain servants.
g, Power to compel at tendance for giving evi dence or to call for documents.
.A, Offences and Penalties.
8-B, Income escapin g assessment.
yer penalty where tax not paid within time.
3.C, Power to reco 9, Appeal and revisi on.
9-4. Proceedings before authorities under the Act to be judicial
proceedings for certa in purposes.
9-B, Power to exempt. 10, Bar to civil and cr iminal suits.
11. Power to make rules
.
THE SCHEDULE
1
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 _immedia-
tely 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
2
*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 _pro- employments,
(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,
3
pROFESSIONS, TRADES, CALLINGS, 3 p, Act vill AND EMPLOYMENTS TAXAT ION » 360
eb p
'9° authority" in a particular are ing a | ade 9 ar areca means
2) "455s Eon authorised by the *[Central Govern- man 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 Chandi-
a 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 th
e Rates of tax.
gchedule annex
ed to this
Act.
ayable by any person und
er this Act Determination
of
e tax Pp ]
| ;
victermined with ref
erence to his total
gross tax.
shall be juring the previous year ; provided that the tax
incore by any person shall not exceed t wo hundred and
Pry rupees for any financial
year.
4 Explanation.—In compu ting the total gross in come
of any person under this section—.
(a) the following expenses incu rred by him in res-
pect of a manufacturing conce rn shall
excluded,—
(1) productive wages, that is to say, expenses on
direct labour which can be meas ured and
directly charged to a job, order or pro duct;
(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 'Stat e Government'' by the Punjab Reor
gani-
1968, (Chandigarh) (Adaptation of Laws on State and Conc urrent 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
4
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, = |
5
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 employm ent of loca ie wae .
ss cen ape (ax which avy such person in employ ment js vane
qu hor shall be deducted at
the source in the manner
jadle : od with reference to his tota l gross income.
rese
'
P unt of the tax deducted in r
espect of
-rso0s in the Oy overnment Treas by th ted into Go asury bythelocal 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 to tal gross income and to giving ev idence or
m to give evidence or produce documents _ for docu-
Mttend before hi
inthe manner prescribed for the purpose of deter mining
such person's liability under this Act.
(2) Such person shall be l egally bound to attend and give evidence or to produce the document if in his posses- sion or power, as the cas e may be, at the place an d time
specified in the notice, and w hoever is required to produ ce
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 s
ub-
(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 Ass
essing Authority ; o
r
unts, registers
(c) knowingly produces incorrect acco nishes !n- of documents, or knowingly fur
correct information;
be
Ins : erted by Punjab Act No. XII of 1957, section 3.
6
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 aggri-
eved 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 rea-
sonable °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,
: sreanisa-
tate Government" by the Punjab Reams et
4ws on State and Concurrent Subjects) tuted ad 3 of 1960, section 5,
of
1964,0.40stitu for the words " mount of tax assessed", by Punjab Act No. 7
a
7
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 be-
half 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 sub-
section 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
8
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 docu- ments 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. —
9
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 excee d 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 pa yable 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 sh
all be, and
shall be deemed always to have been added.
10