TAXATION RULES.

(See section 169.) Part I. Provisions common to taxes in general. 1. (1) The commissioner shall prepare and keep assessment books in such form and in such parts and sections as he thinks fit, showing the persons and property liable to taxation under this Act. (2) The assessment books and where detailed particulars relating to any assessment are kept in separate records, the portion thereof containing such particulars shall be open at all reasonable times and without charge to inspection by any person who pays any tax to the corporation or his authorised agent and such person or agent shall be entitled to take extracts, free of charge from the said books and records. (3) The account books of the corporation shall be open without any charge to inspection by any person who pays any tax to the corporation or his authorised agent on a day or days in each month to be fixed by the council. 2. The commissioner shall, save as otherwise provided in this Act, determine the tax to which each property or person is liable : Provided that in the case of tax payable by the commissioner the original assessment shall be made by the Mayor. 3. (1) The commissioner shall give to every person making payment of a tax a receipt therefor signed by him or some person duly authorised by him in that behalf. (2) Such receipt shall specify- (a) the date of grant ; (b) the name of the person to whom it is granted ; (c) the tax in respect of which payment has been made and in the case of property tax, also the property in respect of which payment has been made ; (d) the period for which payment has been made ; and (e) the amount paid. Part II. Assessment of the property tax, 4. The commissioner shall enter in the assessment books the annual value of all lands and buildings and the tax payable thereon. Such books shall also record the following particulars with regard to each assessable item :- (i) the serial number, description and name, if any, of the item ; (ii) the name of the ward and of the street, if any, in which it is situated and any survey or other number which it bears ; (iii) the name of the owner ; (iv) the annual value or the payment as the case may be ; and 5. A general revision of the assessment books shall be made by the commissioner once in every five years ; and for this purpose the commissioner may, with the approval of the council, arrange the wards of the City in such groups as may be considered necessary and review the assessment books relating to each such group by rotation once in every five years : Provided that the Government may, for special reasons, direct that the revision of assessment books which is due to be made in any year shall be postponed for such period as they think fit and that such postponement shall not affect subsequent general revisions. 6. An assessment once made shall continue in force until it is revised and until the revised assessment takes effect. 7. When assessment books have been prepared for the first time and whenever general revision of such books has been completed, the commissioner shall give public notice- (a) specifying the time when and the place where the books may be inspected ; and (b) stating that revision petitions will be considered if they reach the municipal office within thirty days from the date of such notice in the case of the Government, a railway administration or a company and fifteen days from the said date in other cases : Provided that in every case in which a revised assessment is made, the commissioner shall also cause notice to be given by a special notice to be served on the owner or occupier of the property concerned : Provided further that in every case where a special notice is required to be served on the owner or occupier under the first proviso, the period of thirty days and fifteen days referred to in clause (b) shall be calculated from the date of service of such special notice. 8. The commissioner may after giving notice to the parties concerned and hearing the objections, if any, amend the property tax assessment books at any time between one general revision and another by inserting therein or removing therefrom any property or by altering the valuation of any property or the amount of tax. Such amendment shall be deemed to have taken effect on the first day of the half-year in which it is made : Provided that except in a case of revision which is necessitated by reconstruction of, or improvements or additions to, buildings, or by clerical or arithmetical error when the amendment is made in any half-year after the demand notice for that half-year has been issued, it shall have effect only from the succeeding half-year. 9. In every case in which between one general revision and another the commissioner assesses any property for the first time or increases the assessment on any property otherwise than in consequence of a general enhancement of the rate at which the property tax is leviable, the commissioner shall intimate by a special notice to the owner or occupier of such property that a petition for revising the assessment will be considered if it reaches the municipal office within thirty days from the date of service of such notice in the case of Government, railway administration or a company and within fifteen days from the said date in other cases. 10. Any person may, at any time not being less than one month nor more than sixty days before the end of a half-year, move the commissioner by petition to reduce the tax to which he is liable for the forth coming half-year on the ground that the annual value of the property in respect of which the tax is imposed has decreased since the assessment of the property was last made or revised. 11. The preferring or pendency of an application for revision of the assessment of any tax under rule 7, 9 or 10 shall not- (a) bar the collection thereof, or (b) entitle the applicant to stay the payment of the same. 12. Notwithstanding anything contained in rule 7, 9 or 10, the commissioner may, for special reasons to be recorded in writing, consider petitions received after the periods specified in the said rules and dispose such petitions on their merits. 13. No petition under rule 7, 9 or 10 shall be disposed of unless the petitioner has been given a reasonable opportunity to appear either in person or by authorised agent to and to represent his case. 14. Immediately after the disposal of a revision petition, the commissioner shall inform the petitioner or his authorised agent in writing of the orders passed thereon and shall direct him to pay the amount fixed on revision within fifteen days after the date of receipt of such intimation, or, if the amount is not yet due, within fifteen days from the date on which it becomes due and shall, if necessary, cause the assessment books to be corrected. 15. (1) A general revision shall be deemed to have taken effect on the first day of the half-year following that in which the notice under rule 7 is published or, in a case where a special notice is required to be served on the owner or occupier of the property under the first proviso to that rule, the first day of the half-year following that in which such special notice is served on the owner or occupier of the property. (2) Any correction in the assessment books made by the commissioner under rule 14 or rule 26 shall be deemed to have effect on the first day of the half-year to which the assessment which was sought to be revised or which was appealed against relates. Explanation.-The levy of a new class of property tax or an enhancement in the rate at which any class of property tax is leviable is an amendment or revision within the meaning of this rule and shall take effect from the day fixed for the levy or enhancement. 16. The first payment of tax shall be made within thirty days of the day specified in rule 15. Part III. Assessment for profession tax. (See section 132.) 17. (1) Persons shall be assessed by the commissioner, to profession-tax under the following classes on a scale to be determined by the council from time to time : Provided that such scale shall be subject to the maximum laid down against each class : Provided also that the proportion which the tax of any class bears to the minimum income of that class shall in no case be smaller than the proportion which the tax of any lower class bears to the minimum income of such lower class :-- Class | Half-yearly income | Maximum half-yearly tax --- | --- | --- (1) | (2) | (3) | | Rs. P. I | More than Rs. 15,000 | 100 00 II | More than Rs. 12,000 but not more than Rs. 15,000 | 75 00 III | More than Rs. 9,000 but not more than Rs. 12,000 | 50 00 IV | More than Rs. 6,000 but not more than Rs. 9,000 | 37 50 V | More than Rs. 4,800 but not more than Rs. 6,000 | 25 00 VI | More than Rs. 3,000 but not more than Rs. 4,800 | 15 00 VII | More than Rs. 1,800 but not more than Rs. 3,000 | 9 00 VIII | More than Rs. 1,200 but not more than Rs. 1,800 | 6 00 IX | More than Rs. 600 but not more than Rs. 1,200 | 3 00 Provided further that the profession-tax so assessed by the commissioner shall be paid by such person even before filing an appeal against such assessment. (2) The council may exempt any one or more of the classes in sub-rule (1) from liability to profession-tax, but no class shall be exempted from liability when any lower class is liable to tax. 18. (1) If, in the opinion of the commissioner, profession-tax is or will be due for any half-year from any person other than a person in respect of whom the commissioner obtains particulars of income under section 138, he shall serve a notice on such person in that half-year or in the succeeding half-year requiring him to furnish within such period, not being less than thirty days as may be specified in the notice, a return showing the income on the basis of which, according to such person, he is liable to be assessed to profession-tax for the half-year in question. Thereupon it shall be open to such person to submit a return showing the income derived by him during the half-year for which profession-tax is claimed or during the previous half-year and produce any evidence on which the person may rely in support of the return made. (2) If a return as required under sub-rule (1) or a list with the statement as required by section 138 is furnished and the commissioner is satisfied that it is correct and complete, he shall levy the profession-tax from the person liable to be assessed on the basis of such return or statement. Explanation.-If a person produces the notice of demand of income-tax served on him under the Income-tax Act, 1961 (Central Act 43 of 1961) for the year comprising the half-year in question, the commissioner shall be bound to take one-half of the income mentioned in such notice of demand as the income derived from the source on which profession-tax is leviable under this Act, the income on the said source for the purposes of levying profession-tax. (3) If no return as required under sub-rule (1) is furnished, or if the commissioner is satisfied that any return furnished is incorrect or incomplete, he shall assign to the person the class in the scale appropriate to the half-yearly income of such person as estimated by him. (4) The commissioner may, when classifying any person under sub-rule (3), do so on general considerations with reference to the nature and reputed value of the business transacted, the size and rental of business premises, the quantity and number of articles dealt with, the number of persons employed and the income-tax paid to the Central Government. (5) The commissioner shall not be entitled to call for the accounts of any person. Part IV. Tax on carriages and animals. (See section 141.) 19. (1) The tax on carriages and animals shall be levied at rates not exceeding the following :- Description of carriage or animal | Maximum half-yearly tax --- | --- For every four-wheeled vehicle with springs or other appliances acting as springs constructed to be drawn by one or more animals | Rs. 15 For every two-wheeled vehicle with springs or other appliances acting as springs constructed to be drawn by one or more animals | Rs. 8 For every bicycle or tricycle | Rs. 2 For prambulator | Rs. 2 For rickshaw | Rs. 10 For hand-cart with springs or other appliances acting as springs | Rs. 10 For elephant | Rs. 15 For camel | Rs. 10 For horse or mule not under 12 hands | Rs. 6 For bullock or bull | Rs. 4 For horse or mule under 12 hands | Rs. 5 For pig | Rs. 4 For ass | Rs. 4 For dog | Rs. 2 (2) If within the half-year a person replaces any carriage or animal by another carriage or animal falling under the same class in the table given in sub-rule (1), the said person, in case the replacement was due to the destruction of the carriage or the death of the animal and if he had possession, custody or control of the carriage or animal so replaced at the time of its destruction or death shall not be liable to more than one payment of tax and the amount of such payment shall be regulated by the aggregate number of days for which the carriage which has been destroyed or the animal which has died and the carriage or animal replacing such carriage or animal have been kept during the half-year. Part V. Appeals. (See section 169.) 20. Any assesses who is dissatisfied with the assessment of any tax under this Act, other than property tax and the transfer duty, may make an application in writing to the commissioner for the revision of such assessment stating the grounds of his objection thereto. 21. No application for revision under rule 20 shall be admitted unless the application has reached the municipal office in the case of profession-tax, within fifteen days from the date of service of the notice prescribed by section 135 and in the case of any other tax within seven days from the date of demand provided that the commissioner may, if he thinks fit, extend the period within which notice of objection should be delivered to a period not exceeding one month. 22. (1) All such applications and all petitions under rule 17, 19 or 20 shall be entered in a register to be maintained for the purpose ; and on receipt of any application or petition, notice shall be given to the applicant or petitioner of a time and place at which his application or petition will be considered. (2) At the said time and place the commissioner shall hear the objection in the presence of the objector or his agent if he appears or may for reasonable cause adjourn the investigation. (3) When the objection has been determined, the order passed shall be recorded in the said register together with the date of such order and communicated to the objector or his agent by registered post. 23. (1) Where an objector is dissatisfied with the order passed by the commissioner under sub-rule (3) of rule 22 he may within fifteen days from the date on which such order was received by him appeal against it to a committee called the Taxation Appeals Committee consisting of three members, two of whom shall be members of the council and the third shall be a judicial officer of the rank of a Sub-Judge appointed by the Government on such remuneration as may be fixed by them and subject to such conditions as may be prescribed by them. The person so appointed by the Government shall be the chairman of the committee. (2) The Taxation Appeals Committee shall have all powers of the standing committee on taxation and finance. (3) No business shall be transacted at any meeting of the Taxation Appeals Committee unless the Chairman and at least one other member of the committee are present. If the Chairman and one other member present are divided in opinion as to the decision to be given on any appeal, the appeal shall be decided at a meeting of the committee attended by all the three members. All appeals coming up before the committee at a meeting when all the three members are present, shall be decided according to the opinion of the majority of the members. In the event of disagreement among all the three members the Chairman shall endeavour to bring about agreement among themselves or between any two of them over a specific proposal failing which the opinion of the Chairman shall prevail. (4) No appeal under this rule shall be admitted unless the tax based on the assessment prevailing in the half-year previous to the half-year in question has been paid and the tax assessed against which the appeal is preferred has also been paid : Provided that- (a) if the tax assessed upon such person does not exceed fifteen rupees, then, such person shall not be required to pay the tax in respect of which the appeal is preferred until the disposal of such appeal ; and (b) if the tax assessed upon such person exceeds fifteen rupees but does not exceed thirty rupees, then, such person shall be required to pay the tax based on the assessment prevailing in the half-year previous to the half-year in question. 24. (a) An appeal shall lie to the district court having jurisdiction over the corporation against any decision of the Taxation Appeals Committee constituted under rule 23 but no such appeal shall be heard by the said court, unless - (i) a notice of intention to appeal has been given to the commissioner within ten days from the date on which such decision was communicated by registered post, and (ii) the petition of appeal has been presented within fourteen days from the date on which such decision was communicated by registered post and the tax has been paid within the said period. Explanation.-In the case of a tax leviable by half-yearly instalments, the requirements of clause (ii) as to payment of the tax shall be deemed to have been satisfied if the half-yearly instalment due under the appealed against has been paid. (b) The court may for sufficient cause excuse delay in the presentation of an appeal. (c) The court or notice of intention to appeal shall state the name, occupation and residence of the appellant or of his advocate, if any, and the grounds of appeal. (d) The appellant shall not, except with the leave of the court, urge or be heard in support of any ground of objection which has not been set forth in his notice of intention to appeal. (e) The provisions of Parts II and III of the Limitation Act, 1963 (Central Act 36 of 1963) relating to appeals shall apply to every appeal preferred under this rule. 25. The court may direct who shall bear the costs of an appeal under rule 24. 26. The assessment books maintained by the commissioner, shall be corrected in accordance with the decision of the Taxation Appeals Committee or where there is an appeal to the district court, in accordance with its judgment under rule 24, and in the event of the payment being reduced or remitted by the said committee or court, the Commissioner shall grant a refund accordingly. 27. The assessment or demand of any tax when no application or appeal is made as hereinbefore provided and when such an application or appeal is made, the orders passed by the commissioner, the decision of the Taxation Appeals committee or the adjudication by the district court on the appeal, as the case may be, shall be final : Provided that where any assessment or demand is not in accordance with the assessment books, nothing in this rule shall be deemed to prohibit fresh assessment or demand of the tax being made in accordance therewith. Part VI. Collection of taxes. (See section 169.) 28. (1) Where any tax, not being a tax in respect of which a notice has been served under section 135 or section 146 is due from any person the commissioner shall cause to be served or sent to such person a bill for the sum due before proceeding to enforce the provisions of rule 29. (2) A notice under section 135 or section 146 and a bill under sub-rule (1) shall be signed by the commissioner, and shall contain- (a) a statement of the period and a description of the occupation, property or thing for which the tax is charged and other particulars of the demand ; and (b) notice of the liability which may be incurred in default of payment. (3) Where a notice or bill referred to in sub-rule (1) has not been served or given either in the half-year in which the tax became due or in the succeeding half-year the tax for the half-year first mentioned in this sub-rule shall not be demanded. 29. (1) If the amount due on account of any tax is not paid within fifteen days from the receipt of the notice or bill referred to in section 135 or section 146 or rule 28 and if the person from whom the tax is due has not shown cause to the satisfaction of the commissioner why it should not be paid, the commissioner may recover by distraint and sale of the movable property of the defaulter or if the defaulter is the occupier of any building or land in respect of which a tax is due, by distress and sale of any movable property which may be found in or on such building or land, the amount due on account of the tax together with the warrant fee and distraint fee and with such further sum as will satisfy the probable charges that will be incurred in connection with the detention and sale of the property so distrained : Provided always that movable property described in the proviso to sub-section (1) of section 60 of the Code of Civil Procedure, 1908 (Central Act V of 1908) shall not be liable to distraint. Explanation.-It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss to contend that notwithstanding his negligence or misconduct, the deficiency or loss would not have occurred but for the negligence or misconduct of some other person. (2) If for any reason the distraint, or a sufficient distraint of the defaulter's property is impracticable the commissioner may prosecute the defaulter before a magistrate. (3) Nothing herein contained shall preclude the corporation from suing in a civil court for the recovery of any tax, duty or other amount due to it under this Act. 30. Under a special order in writing of the commissioner any officer charged with the execution of a warrant of distress may between sunrise and sunset, break open any outer or inner door or window of a building in order to make the distress, if he has reasonable ground for believing that such building contains property which is liable to seizure, and if, after notifying his authority and purpose, and duly demanding admittance, he cannot otherwise obtain admittance : Provided that such officer shall not enter or break open the door of any apartment appropriated to women until he has given three hours notice of his intention and has given such women an opportunity to withdraw. 31. The officer charged with the execution of a warrant, shall, before making the distraint, demand payment of the tax due and the warrant fee. If the tax and fee are paid no distraint shall be made but if the tax or fee is not paid, the officer shall- (a) seize such movable property of the defaulter as he may think necessary ; (b) make an inventory of the property seized ; and (c) give to the person in possession of the property seized at the time of seizure a copy of the inventory and the notice of sale : Provided that a period of seven days shall be allowed for paying the amounts due and redeeming the property seized. 32. The distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal in value to the tax due by the defaulter, together with all expenses incidental to the warrant, distraint, detention and sale. 33. (1) If the amount due by the defaulter on account of the tax, the warrant fee and distraint fee and the expenses incidental to the detention of the property are not paid within the period of seven days mentioned in the notice given under rule 31 and if the distraint warrant is not suspended by the commissioner, the property seized or a sufficient portion thereof, shall be sold by public auction under the orders of the commissioner who shall apply the proceeds of the sale to the payment of the amount due on account of the tax, the warrant fee and the distraint fee and the expenses incidental to the detention and sale of the property, and shall return to the person in whose possession the property was at the time of seizure any property or sum which may remain after the sale and the application of the proceeds thereof as aforesaid if application is made by such person within twelve months from the date of the sale. If no such application is made, the property or sum so remaining shall be forfeited to the corporation. If the proceeds of the sale are insufficient for the payment of amount due on account of the tax, the warrant fee and distraint fee and the expenses incidental to the detention and sale of the property, the commissioner may again proceed under rules 29 and 30 in respect of the sum remaining unpaid. (2) When the property seized is perishable or subject to speedy and natural decay or if the expense of keeping it will, together with the amount of tax due, exceed the value of the property, the commissioner may sell it at any time before the expiry of the said period of seven days unless the amount due is sooner paid. (3) The commissioner shall consider any objections to the distraint of any property which are made within the said period of seven days and may postpone the sale pending investigation thereof. If the commissioner decides that the property distrained was not liable to distraint, he shall return it, or if it has already been sold, the proceeds of the sale to the person appearing to be entitled thereto and may again proceed under rules 29 and 30 ; and all fees and expenses connected with the first distraint and sale shall be recoverable from the defaulter if it shall appear to the commissioner that he wilfully permitted the distraint of the property when to his knowledge it was not liable to distraint. 34. (a) Fees shall be levied on distraints under this Act with reference to the amount due for which the distraint is made and according to the rates in the following table : * Sum distrained for | Fees --- | --- Under one rupee | Rs. 0.25 P One rupee and over but under five rupees | Rs. 0.50 P Five rupees and over but under ten rupees | Rs. 1.00 P Ten rupees and over but under fifteen rupees | Rs. 1.50 P Fifteen rupees and over but under twenty rupees | Rs. 2.00 P Twenty rupees and over but under twenty-five rupees | Rs. 2.50 P Twenty-five rupees and over but under thirty rupees | Rs. 3.00 P Thirty rupees and over but under thirty-five rupees | Rs. 3.50 P Thirty-five rupees and over but under forty rupees | Rs. 4.00 P Forty rupees and over but under forty-five rupees | Rs. 4.50 P Forty-five rupees and over but under fifty rupees | Rs. 5.00 P Fifty rupees and over but under sixty rupees | Rs. 6.00 P Sixty rupees and over but under eighty rupees | Rs. 7.50 P Eighty rupees and over but under one hundred rupees | Rs. 9.00 P One hundred rupees and over | Rs. 10.00 P (b) Such fees shall include all expenses except- (i) the cost of maintaining any livestock or the expenses incidental to the detention of the distrained property ; and (ii) the charge payable on account of peons kept in charge of the distrained property, namely, nineteen paise daily for each peon. 35. (a) The movable property of a defaulter may be distrained wherever it may be found within the State of Tamil Nadu. (b) If it is necessary to distrain property outside the limits of the City, the commissioner shall address his warrant to such public servant having local jurisdiction as the Government may by general or special order direct. (c) Such public servant shall execute the warrant himself or cause it to be executed by some person subordinate to himself. (d) Subject to the modifications set out in the following clauses, the provisions of rules 32 to 34 (both inclusive) shall apply to the execution of the warrant and the disposal of the sale-proceeds. (e) For the purpose of action under rule 30 no special order in writing of the commissioner shall be required but if the public servant to whom the warrant is addressed charges any subordinate with the execution thereof, he shall furnish such subordinate with a special order in writing to that effect, and such subordinate shall then have authority to take action under the rule. (f) For the purpose of action under rule 33 the public servant to whom the warrant is addressed may, without further orders from the commissioner, sell or direct the sale of the property seized, and shall on completion of the sale, transmit the proceeds to the commissioner, subject to such deduction, if any, as may be necessary to meet expenses incurred locally. (g) It shall be unlawful for such public servant aforesaid or for any person subordinate to him to purchase directly or indirectly any property at any such sale. 36. If the tax due on account of any building or land remains unpaid in whole or in part at the end of the period specified in sub-rule (1) of rule 29, the commissioner may, if the said tax has not remained unpaid for more than twelve months, require the occupier for the time being of such building or land to pay the amount within a specified period not being less than fifteen days and if the occupier fails to comply with such requisition, the commissioner may distrain and sell any movable property found on the building or land the provisions of the foregoing rules shall mutatis mutandis apply to all distraints and sales effected under this rule : Provided that no occupier shall be liable to prosecution or to a civil suit in respect of any sum recoverable from him under this rule unless he has wilfully prevented distraint or a sufficient distraint. 37. If any tax due from any person remains unpaid in whole or in part at the end of the period specified in sub-rule (1) of rule 29 and if such person has left India or cannot be found, the said tax or such part thereof remains together with all sums payable in connection therewith shall be recoverable as if it were an arrear of land revenue. 38. (1) Every person who is prosecuted under sub-rule (2) of rule 29, shall be liable, on proof to the satisfaction of the magistrate that he wilfully omitted to pay the amount due by him to pay a fine not exceeding twice the amount which may be due by him on account of- (a) the tax and the warrant fee, if any, and (b) if distraint has taken place, the distraint fee and the expenses incidental to the detention and sale, if any, of the property distrained. (2) Whenever any person is convicted of an offence under sub-rule (1), the magistrate shall, in addition to any fine which may be imposed, recover summarily and pay over to the corporation, the amounts, if any, due under the heads specified in clauses (a) and (b) of sub-rule (1), and may in his discretion also recover summarily and pay to the corporation such amount, if any, as he may fix as the costs of the prosecution. 39. Neither the commissioner nor any municipal officer or servant shall directly or indirectly purchase any property at any sale of distrained property held under the foregoing rules. 40. In these rules, the expression "tax" includes payment by way of composition for a tax.