Professions Tax, Limitation Act, 1941[1]

[Act 20 of 1941]

[26th November, 1941]

PASSED BY THE, INDIAN LEGISLATURE.

An Act to limit to a maximum of fifty rupees per annum the amount payable in respect of any person by way of tax on professions, trades, callings or employments.

Whereas by section 142A of the Government of India Act, 1935, it is provided that no Provincial law relating to taxes for the benefit of a Province, or of a municipality, district board, local board, or other local authority therein, in respect of professions, trades, callings or employments shall be invalid on the ground that it relates to a tax on income and that the total amount of such tax payable in respect of any one person shall not, after the 31st day of March, 1939, exceed fifty rupees per annum;

And Whereas it is further provided in the, said section that any such tax which was in force during the financial year ending with the 31st day of March, 1939, may continue to be lawfully levied at a rate higher than fifty rupees per annum unless provision to the contrary is made by the Federal Legislature;

And Whereas it is expedient that provision shall be made whereby the total amount payable in respect of any such person by way of such tax shall not exceed fifty rupees per annum;

It is hereby enacted as follows.

Section - 1. Short title extent and commencement.

(1)     This Act may be called the Professions Tax, Limitation Act, 1941.

(2)     It extends to the whole of British India.

(3)     It shall come into force be the 1st day of April, 1942.

Section - 2. Limitation of tax.

Notwithstanding the provisions of any law for the time being in force, any taxes payable in respect of any one person to a Province, or to any one municipality, district board, local board or other local authority in any Province, by way of tax on professions, trades, callings or employments, shall from and after the commencement of this Act cease to be levied to the extent to which such taxes exceed fifty rupees per annum.

Section - 3. Saving.

The provisions of section 2 shall not apply to any tax specified in the Schedule.

THE SCHEDULE

(See section 3.)

Taxes to which section 2 does not apply.

1.        The tax on professions, trades and callings, imposed through fobs for annual licences, under Chapter XII of the Calcutta Municipal Act, 1923 (Ben. Act III of 1923).

2.        The tax on trades, professions and callings, imposed under clause (f) of sub-section (1) of section 123 of the Bengal Municipal Act, 1932 (Ben. Act XV of 1932).

3.        The tax on trades and callings carried on within the municipal limits and deriving special advantages from, or imposing special burdens on, municipal services, imposed under clause (ii) of sub-section (1) of section 128 of the United Provinces Municipalities Act, 1916 (U.P. Act II of 1916).

[2][3A. The tax on inhabitants assessed according to their circumstances and property, imposed under clause (ix) of sub-section (1) of section 128 of the United Provinces Municipalities Act, 1916 (U.P. Act II of 1916).]

[3][3B. The tax on persons assessed according to their circumstances and property, imposed under clause (b) of section 108 of the United Provinces District Boards Act, 1922 (U.P. Act X of 1922).].

4.        The tax on persons exercising any profession or art, or carrying on any trade or calling, within the limits of the municipality, imposed under clause (b) of sub-section (1) of section 66 of the Central Provinces Municipalities Act, 1922 (C.P. Act II of 1922).

5.        [4][The tax on complies, imposed under section 110 of the Madras City Municipal Act, 1919 (Madras Act IV of 1919)]