The Rajasthan Finance Act, 2020

This Act may be called the Rajasthan Finance Act, 2020.

In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 5, 6, 9, 10, 11 and 13 of this Bill shall have immediate effect under the said Act and rest of the provisions shall come into force on 1st day of April, 2020.

In section 2 of the Rajasthan Stamp Act, 1998 (Act No. 14 of 1999), hereinafter in this Chapter referred to as the principal Act,-

1. (i) for the existing clause (xix), the following shall be substituted, namely:- "(xix) "instrument" includes-

1. (a) every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished, or recorded; and
2. (b) any other document mentioned in the Schedule; Explanation.- The term "document" also includes any electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (Central Act No. 21 of 2000).";
   • (ii) for the existing clause (xxxiii-a), the following shall be substituted, namely:- "(xxxiii-a) "securities" includes-
3. (a) securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (Central Act No. 42 of 1956);
4. (b) a "derivative" as defined in clause (a) of section 45U of the Reserve Bank of India Act, 1934 (Central Act No. 2 of 1934);
5. (c) a certificate of deposit, commercial usance bill, commercial paper, repo on corporate bonds and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time; and
6. (d) any other instrument declared by the Central Government, by notification in the Official Gazette, to be securities for the purposes of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899);"; and
   • (iii) for the existing clause (xxxvii), the following shall be substituted, namely:- "(xxxvii) "stock exchange" includes-
7. (a) a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (Central Act No. 42 of 1956); and
8. (b) such other platform for trading or reporting a deal in securities, as may be specified by the Central Government, by notification in the Official Gazette, for the purposes of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899).".

In section 5 of the principal Act, after the existing sub-section (2), the following new sub-section shall be added, namely:- "(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or transfer of securities, the instrument on which stamp duty is chargeable under section 9A of the Indian Stamp Act, 1899 (Central Act No. 2 of 1899) shall be the principal instrument for the purpose of this section and no stamp duty shall be charged on any other instruments relating to any such transaction.".

In sub-section (2) of section 9 of the principal Act, after the existing expression "other marketable securities" and before the existing punctuation mark ".", appearing at the end, the expression "or of such other instruments as may be specified by the State Government by notification in the Official Gazette" shall be inserted.

In sub-section (1) of section 18 of the principal Act, for the existing punctuation mark ".", appearing at the end, the punctuation mark ":" shall be substituted and after sub-section (1), so amended, the following proviso shall be added, namely:- "Provided that every instrument executed out of the State relating to any property situate in the State shall be produced within three months from the date of its execution before the Collector within whose jurisdiction property is situate."

For the existing section 23 of the principal Act, the following shall be substituted, namely:- "23. Stock and marketable securities how to be valued.- Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the market value of such stock or security: Provided that the market value for calculating the stamp duty shall be, in the case of-

1. (a) options in any securities, the premium paid by the buyer;
2. (b) repo on corporate bonds, interest paid by the borrower; and
3. (c) swap, only the first leg of the cash flow."

In clause (d) of section 32 of the principal Act, for the existing expression "exchange", the expression "exchange including swap" shall be substituted.

In sub-section (3) of section 36 of the principal Act, for the existing second proviso, the following shall be substituted, namely:- "Provided further that nothing in this section shall authorise the Collector to endorse-

1. (a) any instrument executed or first executed in the State and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
2. (b) any instrument executed or first executed out of the State and brought to him after the expiration of three months after it has been first received in the State."

In proviso to section 39 of the principal Act,-

1. (i) for the existing clause (d), the following shall be substituted, namely:- "(d) nothing herein contained shall prevent the admission of any instrument in any court when such instrument has been executed in favour of the Government or where liability to pay stamp duty is on the Government or where it bears the certificate of the Collector as provided by section 36 or any other provision of this Act."; and
2. (ii) the existing clause (g) shall be deleted.

In section 53 of the principal Act, after the existing sub-section (6), the following new sub-section shall be added, namely:- "(7) For the purpose of inquiries under this section, the Collector shall have power to summon and enforce the attendance of witnesses, including the parties to the instrument or any of them, and to compel the production of documents by the same means, and so far as may be in the same manner, as is provided in the case of civil court under the Code of Civil Procedure, 1908 (Central Act No. 5 of 1908)."."

In the Schedule of the principal Act,-

1. (i) the existing Article 5-A and Article 18 shall be deleted;
2. (ii) in Article 26, in the entry of column (1), after the existing expression "Delivery order in respect of goods" and before the existing expression ", that is to say", the expression "(excluding delivery order in respect of settlement of transactions in securities in stock exchange)" shall be inserted; and
3. (iii) for the existing Article 34, the following shall be substituted, namely:-

"34. Letter of allotment in respect of any loan to be raised by any company or proposed company. Five hundred rupees.

".

In proviso to sub-section (1) of section 9-A of the Rajasthan Excise Act, 1950 (Act No. II of 1950), for the existing expression "75%", the expression "25%" shall be substituted.

This Chapter shall extend to the whole of the State of Rajasthan.

In this Chapter, unless the context otherwise requires,-

1. (a) “appellate authority” means the officer appointed as such by the State Government for any area by notification in the Official Gazette;
2. (b) “assessing authority” means the officer appointed as such by the State Government for any area by notification in the Official Gazette;
3. (c) “land” means the land from the surface to the core of the earth and where separate rights are held and granted in different layers of the earth such different layers shall be treated as separate lands and shall be assessed to tax separately and independent of each other;
4. (d) “landholder” means a person who holds taxable land as its owner, tenant, lessee, licensee, grantee or under any other right of ownership or occupancy; Explanation.- Where a landholder holds more than one taxable lands, all such lands shall be considered one unit for the purposes of this Chapter;
5. (e) “prescribed” means prescribed by the rules made under this Chapter;
6. (f) “tax” means the tax on land levied and payable under this Chapter;
7. (g) “taxable land” means all lands except the land-
   • (i) owned by–
8. (A) the Central Government; or
9. (B) the State Government or a local authority, except where such land or a right connected therewith is leased out or otherwise given for its use to any person, institution or corporation, etc. on payment or without payment; or
   • (ii) held–
10. (A) for agricultural or residential purposes; or
11. (B) as a wakf property; or
12. (C) by the Devasthan Department of the State Government; or
13. (D) for religious or public charitable purposes; or
14. (E) for purposes connected with the disposal of dead bodies; or
15. (F) for public parks, public libraries or public museums or similar public amenities; or
    • (iii) which is, for the time being, assessable to tax (by whatever name called) under the provisions of the Rajasthan Municipalities Act, 2009 (Act No. 18 of 2009) or the Rajasthan Panchayati Raj Act, 1994 (Act No.13 of 1994); and
16. (h) “year” means the year commencing on 1st April and ending on 31st March next following.

1. (1) Subject to the other provisions of this Chapter, there shall be levied and collected for each year a tax on such class of taxable lands at such rates, not exceeding rupees five hundred per square meter, as may be specified by the State Government from time to time by notification in the Official Gazette and different rates may be specified for different classes of the taxable lands. Explanation.- While classifying land for the purpose of this section, factors like value, productivity, composition, benefits arising out, etc. of the land may be taken into account.
2. (2) Tax levied under this section shall become due on the 1st day of April of each year and the landholder holding the taxable land on that day shall be liable to pay the whole tax for that year, however, he shall be entitled to claim and recover the proportionate amount of tax from any other person who holds that land in any later part of that year.
3. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), where any land becomes liable to tax at any time subsequent to the 1st April of a year, the tax leviable under this section shall be levied proportionately for the remaining period of that year and such tax shall become due on the 1st day of the month next following the month in which such land becomes so liable and the landholder holding the taxable land on that day shall be liable to pay the whole tax for remaining period of that year, however, he shall be entitled to claim and recover the proportionate amount of tax from any other person who holds that land in any later part of that year.
4. (4) Notwithstanding anything contained in sub-section (1) or sub-section (2), where any land for any reason whatsoever ceases to be liable to tax at any time during a year, the tax leviable under this section shall be levied proportionately for the period of that year during which such land remained liable to tax.

1. (1) A landholder may, at his option, pay the tax either in lump sum on or before the 30th day of April of the year or on or before the last day of the month next following the month in which a land becomes taxable or in three equal instalments of equal periods ending on 31st March of a year, however, any amount of tax paid after the 30th day of April or the last day of the month next following the month in which a land becomes taxable, as the case may be, shall carry a simple interest at the rate of 12 per cent per annum until the date of payment of such amount.
2. (2) Notwithstanding anything contained in sub-section (1), where any land for any reason whatsoever ceases to be liable to tax at any time during a year, the landholder shall pay the whole amount of tax due in respect of such land on or before the last day of the month in which such land ceases to be liable to tax along with the interest payable, if any.

The State Government, if it considers expedient in the public interest so to do, may, by notification in the Official Gazette, exempt, reduce or remit, whether prospectively or retrospectively, the tax payable in respect of any class of taxable lands or by any class of landholders, without any condition or with such conditions as may be specified in the notification.

1. (1) Every landholder shall self-assess the tax payable under this Chapter and furnish a return on or before the 30th day of April of each year, or on or before the last day of the month next following the month in which a land becomes taxable, as the case may be, to the assessing authority in the prescribed form and manner.
2. (2) The tax assessed under sub-section (1) shall be deposited by the landholder into a Government Treasury or a bank authorised to receive money on behalf of the State Government in such manner as may be prescribed.
3. (3) Where landholder discovers any omission or error in any return furnished by him under sub-section (1), he may furnish a revised return within thirty days from the date on which the return becomes due, and the burden of proving that the omission or the error was bona fide, shall be on such landholder.
4. (4) Where the return filed under sub-section (1) is incomplete or the assessing authority is not satisfied with the correctness of the return, he shall, by notice in writing, require the landholder to produce or cause to be produced such information or documents as he may deem necessary and after affording the landholder a reasonable opportunity of hearing assess the tax by an order in writing and such assessment shall have effect from the 1st day of the period to which the return relates.
5. (5) If no notice under sub-section (4) is issued within three year from the date on which the return becomes due, the assessment made, and return filed, under sub-section (1) shall be final and shall not be questioned thereafter in any manner, whatsoever.

1. (1) Where a landholder liable to pay tax under this Chapter fails to file return and deposit tax as required under section 19, the assessing authority shall, by notice in writing, require the landholder to produce or cause to be produced such information or documents as he may deem necessary and after affording the landholder a reasonable opportunity of hearing assess the tax by an order in writing and such assessment shall have effect from the day on which the land became liable to tax and the landholder holding the land on the date of assessment shall be liable to pay the whole tax so assessed along with penalty and interest, if any, payable under this Chapter, however, he shall be entitled to claim and recover the proportionate amount of tax, penalty and interest from any other person who held that land in any part of the period to which such assessment relates and where on the date of assessment such land has ceased to be taxable, all the landholders who had hold the land during the period to which such assessment relates shall be liable, jointly and severally, to pay tax so assessed along with penalty and interest, if any, payable under this Chapter and if such tax, penalty and interest is recovered from one or some of the landholders, such landholder or landholders, as the case may be, shall be entitled to claim and recover proportionate amount of tax, penalty and interest from the remaining landholders.
2. (2) No assessment under this section shall be made for any period prior to three years from the 1st day of April of the year in which assessment is sought to be made under this section.

Where the landholder fails to deposit tax on or before the day on which tax becomes due or, in case he opts for instalments, on or before the date on which an instalment becomes due or does not file a return or revised return on or before the day on which such return becomes due or files incomplete or incorrect return, he shall be liable to pay by way of penalty,-

1. (i) in case of default in payment of tax, an amount equal to two percent per month on the amount of tax due but the amount of penalty shall not exceed two times the amount of tax due;
2. (ii) in case of default in filing of return, fifty rupees per day of default but the amount of penalty shall not exceed fifty thousand rupees;
3. (iii) in case of incomplete or incorrect return, twenty five thousand rupees.

The State Government may, if it considers expedient in the public interest so to do, remit any penalty or interest payable under this Chapter, without any condition or with such conditions as it may think fit.

1. (1) Any sum paid in excess of the amount due from a landholder shall, on an application by him to the assessing authority, be refunded to him in such manner as may be prescribed.
2. (2) No application under sub-section (1) shall be entertained unless it is filed within one year from the end of the year to which such excess amount relates.

1. (1) Any tax, interest or penalty payable under this Chapter shall be a charge on the taxable land in respect of which such tax, interest or penalty is payable.
2. (2) Without prejudice to other provisions of this Chapter, where any tax, interest or penalty payable by a landholder under this Chapter is not paid in accordance with the provisions of this Chapter or the rules made or notifications issued thereunder, it shall be recoverable as an arrear of land revenue and the assessing authority or any other officer authorised by the Inspector General of Registration and Stamps, Rajasthan, shall be empowered to recover such tax, interest or penalty by attachment and sale of movable or immovable property of such landholder and all the provisions of the Rajasthan Land Revenue Act, 1956 (Act No. 15 of 1956) read with the Rajasthan Land Revenue (Payments, Credits, Refunds and Recovery) Rules, 1958 shall mutatis mutandis apply.

1. (1) Notwithstanding anything contained in section 24 or any law or contract to the contrary, the assessing authority or any other officer authorised by the Inspector General of Registration and Stamps, Rajasthan, may, at any time or from time to time by notice in writing, a copy of which shall be sent to the landholder at his last known address, require, –
   • (a) any person from whom any amount is due or may become due to the landholder who has failed to pay tax, interest or penalty on demand by the assessing authority; or
   • (b) any person who holds or may subsequently hold any money for or on account of such landholder- to pay into the Government treasury or the bank authorised to receive money on behalf of the State Government, in the manner specified in the notice issued under this section either forthwith or upon the money becoming due from him or being held by him, within the time specified in the notice (not being before the money becomes due or it is held), so much of the money as is sufficient to pay the amount due from the landholder in respect of the demand of tax, interest or penalty under this Chapter, or the whole of the money when it is equal to or less than that demand. Explanation.– For the purpose of this sub–section, the amount due to a landholder or money held for or on account of a landholder by any person shall be computed after taking into account such claims, if any, as may have fallen legally due for payment by such landholder to such person.
2. (2) The authority issuing a notice under sub–section (1) may at any time, or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of this notice.
3. (3) Any person making any payment in compliance with a notice issued under sub–section (1) shall be deemed to have made the payment under the authority of the landholder and the treasury receipt or the challan of the bank for such payment shall constitute a good and sufficient proof of discharge of the liability of such person to the extent of the amount specified in the receipt or the challan.
4. (4) Any person, who discharges any liability by making payment to the landholder or otherwise, after service on him of the notice issued under sub–section (1), shall be personally liable to the State Government to the extent of the liability discharged or the amount of demand, whichever is less.
5. (5) Any amount or money which a person is required to pay under sub–section (1) or for which he is personally liable to the State Government under sub–section (4) shall, if it remains unpaid, be recoverable in accordance with the provisions of this Chapter as if he is a landholder.
6. (6) The provisions of this section shall be without prejudice to any action that may be taken for the recovery of arrears of tax, interest or penalty, if any, due from a landholder.

1. (1) Any person aggrieved by an order of assessing authority under this Chapter or a notice under section 25 may at any time before the expiry of thirty days from the date of the order or notice, as the case may be, prefer an appeal to the appellate authority: Provided that no appeal by or on behalf of a landholder shall be entertained unless it is accompanied by satisfactory proof of payment of not less than one fourth of the sum due from the landholder.
2. (2) The appellate authority may admit an appeal after the expiry of the period referred to in sub-section (1), if he is satisfied that there was sufficient cause for not preferring the appeal within that period.
3. (3) Every appeal under this section shall be presented and verified in the manner prescribed.
4. (4) The appellate authority shall, after affording an opportunity of being heard to the parties, pass such order on the appeal as it thinks fit and shall send a copy of the order to the assessing authority and such other persons as may be prescribed.
5. (5) The order of the appellate authority passed under this section shall, subject to any order passed under section 28, be final.

The assessing authority and the appellate authority shall, for the purpose of this Chapter, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (Central Act No. 5 of 1908) while trying a suit, in respect of the following matters, namely:-

1. (a) enforcing the attendance of any person and examining him on oath or affirmation;
2. (b) compelling the production of any document;
3. (c) issuing commission for the examination of any witness; and
4. (d) passing such interim orders as may be necessary for the ends of justice; and any proceedings before such authority under this Chapter shall be deemed to be a Judicial proceedings within the meaning of sections 193 and 228 of the Indian Penal Code, 1860 (Central Act No. 45 of 1860) and also for the purpose of section 196 of the said Code.

The State Government or such other authority, as may be appointed by it in this behalf by notification in the Official Gazette, may, on its own motion or on application made, call for the record of any case decided by any authority under this Chapter for the purpose of satisfying itself as to the legality or propriety of proceedings of such case, and may pass such order in reference thereto as appears to it necessary for the ends of justice: Provided that no order under this section shall be passed unless a reasonable opportunity of hearing has been provided to the person whose interests are likely to be prejudicially affected by such order.

1. (1) Every officer or authority under the State Government, who is entrusted with the function of allotment, or maintenance of record of, land shall furnish such information about taxable lands allotted or being managed by him to the assessing authority having jurisdiction, in such manner, at such times and in such form as may be prescribed and shall furnish every year by the 15th day of April a consolidated return of such information.
2. (2) If any officer, or the officer authorised by an authority, responsible for furnishing information under sub-section (1) shall, if he fails to furnish the information as required by or under that sub-section, be personally liable to pay a penalty which may extend to rupees two lakhs but shall not be less than rupees twenty five thousand: Provided that no order imposing penalty shall be passed under this section unless the officer concerned has been afforded an opportunity of hearing.
3. (3) The Inspector General, Registration and Stamps, Rajasthan shall be empowered to impose penalty under this section and an appeal shall lie to the Secretary, Finance (Revenue), Government of Rajasthan against such order.

The assessing authority or such other officer as may be appointed in writing by him in this behalf, may, for the purpose of carrying out its function under this Chapter, after giving reasonable notice to the occupier of the land in respect of which the tax is likely to be assessed, enter upon such land: Provided that no such entry shall be made –

1. (i) within the hours of sunset and sunrise;
2. (ii) in a human dwelling, except with the consent of the occupier or after giving him not less than twenty-four hours previous notice in writing of the proposed entry; and
3. (iii) without due regard to the social and religious usages of the occupier.