Chapter II Liability to and charge of tax

(1) As from the assessment year commencing from the 1st day of April, 1976 and subject to the provisions of this Act, every person who carries on a trade either by himself or by an agent or representative, or who follows a profession or calling, or who is in employment, either wholly or in part within the State shall be liable to pay for each financial year a tax with reference to his total gross income of the previous year with regard to such profession, trade, calling or employment and in addition to any tax, rate, duty or fee which he is liable to pay under any other enactment for the time being in force : Provided that the tax payable by any person shall not exceed Rs. 250 for any financial year. (2) In respect of total gross income chargeable under sub-S. (1), tax shall be deducted at the source or paid in advance where it is so deductible or payable under any provision of this Act. Explanation. For the purposes of this section a person on leave shall be deemed to be a person in employment.

The tax shall be levied at the rates specified in the Schedule annexed to this Act.

The provisions of this Act shall not apply to a member of the armed forces of India.