Bare Act
The Punjab Forward Contracts Tax Act, 1951
The Punjab Forward Contracts Tax Act, 1951 establishes a legal framework to tax businesses trading in forward contracts where price differences are settled without actual physical delivery of goods. It applies to individuals, firms, commission agents (arhtis), Hindu Undivided Families, and business associations operating within the state or specified territories like Chandigarh. By mandating registration, account maintenance, and periodic tax returns, the law prevents tax evasion in cash-settled speculative commodity trading. For an ordinary citizen or merchant, it ensures that financial speculation is regulated, transparent, and subject to state revenue collection while establishing clear mechanisms for assessment, appeals, and penalties.
- 1. Short title, extent and commencement
- 2. Definitions
- 3. Taxing authorities
- 4. Rate of Tax
- 5. Liability for taxation
- 6. Registration of dealers
- 7. Payment of tax and returns
- 8. Assessment of tax
- 9. Refunds
- 10. Accounts
- 11. Production and inspection of accounts and documents
- 12. Delegation of powers
- 13. Information to be furnished regarding change of business
- 14. Tax payable by transferee of business
- 15. Bar of certain proceedings
- 16. Appeal
- 17. Revision
- 18. Offences and penalties
- 19. Compounding of offences
- 20. Indemnity
- 21. Returns, etc., to be confidential
- 22. Power to make rules
PDF: pending for this language.