Report No. 96
17. Professions Tax Limitation (Amendment and Validation) Act, 1949 (61 of 1949).
By section 142(1) of the Government of India Act, 1935,1 certain Provincial laws providing for the imposition of tax on professions etc., were saved, but it was provided that after 31st March, 1939 the tax payable in respect of any one person under any law (imposing such a tax) should not exceed rupees fifty per annum. At the same time, by section 142(2) and proviso, pre-existing taxes were to continue to be lawfully levied even on a higher rate than rupees fifty, unless a Provision to the contrary was made by the federal legislature.
There was a widespread demand in the erstwhile Madras Presidency that the professions tax, levied by municipalities and local boards under Provincial legislation and based solely on income, should be subject to the maximum of rupees fifty per annum. The Professions Tax Limitation Act, 1941 (120 of 1941) gave effect to that demand, and extended the limit laid down in sub-section (1) of section 142 of the Government of India Act, 1935 to those provinces in which, owing to the proviso to sub-section (2) of section 142, applied. If today such an Act were to be passed to save past violations of the Government of India Act, 1935, the proper legislative entry would be the Union List, Entry 97 (residuary).
Action to be taken.-In view of the legislative practice of retaining validating Acts on the statute book studied above, the Act will have to be allowed to continue.
1. Compare Article 276, Constitution of India.