THE PUNJAB PROFESSIONS, TRADES, CALLINGS AND EMPLOYMENTS TAXATION ACT, 1956

   
PROFESSIONS, TRADES, CALLINGS AND 36 AINGS d 365 

HE PUN” MPLOYMENTS TAXATION AC gi ACT, 1956, 

TABLE OF CONTENTS 

gections ' 

1. Short title, extent and commencement,
 

2. Definitions. 
§ 

3, Levy of tax. 
. 

4, Rate of tax. 

5. Determination of tax. Eg 

5-A. Act not to apply to Armed Forces, 

6, Recovery of tax as arrears of Land Revenue. 

7. Deduction of tax from certain servants. 

g, Power to compel attendance for giving evidence or to call for 

documents. 

.A, Offences and Penalties. 

8-B, Income escaping assessment. 

yer penalty where tax not paid within time. 

3.C, Power to reco 

9, Appeal and revision. 

9-4. Proceedings before authorities under the Act to be judicial 

proceedings for certain purposes. 

9-B, Power to exempt. 

10, Bar to civil and criminal suits. 

11. Power to make rules. 

THE SCHEDULE 

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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 

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*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, 

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pROFESSIONS, TRADES, CALLINGS, 3 

p, Act vill AND EMPLOYMENTS TAXATION » 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 the Rates of tax. 

gchedule annexed to this Act. 

ayable by any person under this Act Determination of 

e tax Pp ] | ; 

victermined with reference to his total gross tax. 

shall be juring the previous year ; provided that the tax 

incore by any person shall not exceed two hundred and 

Pry rupees for any financial year. 

4 Explanation.—In comp
uting the total gross income 

of any person under this section—. 

(a) the following expenses incurred by him in res- 

pect of a manufacturing concern shall 

excluded,— 

(1) productive wages, that is to say, expenses on 

direct labour which can be measured and 

directly charged to a job, order or product; 

(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 ‘State Government’’ by the Punjab Reorgani- 

1968, (Chandigarh) (Adaptation of Laws on State and Concurrent 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 
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   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, 

= | 

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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 employment of loca ie wae . 

ss cen ape (ax which avy such person in employment js vane 

qu hor shall be deducted at the source in the manner 

jadle : od with reference to his total gross income. 

rese 
‘ 

P unt of the tax deducted in respect of 

-rso0s in the Oy overnment Treas by th ted into Go asury by the local 

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 total gross income and to giving evidence or 

m to give evidence or produce documents _ for docu- 

Mttend before hi 
inthe manner prescribed for the purpose of determining 

such person's liability under this Act. 

(2) Such person shall be legally bound to attend and 

give evidence or to produce the document if in his posses- 

sion or power, as the case may be, at the place and time 

specified in the notice, and whoever is required to produce 

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 sub- 
(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 Assessing Authority ; or 

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. 

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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 

1964,0.40stituted for the words “ mount of tax assessed”, by Punjab Act No. 7 

a 

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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 

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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. 

— 

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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 exceed 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 payable 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 shall be, and 

shall be deemed always to have been added. 

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