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PAYMENT OF TAXES (TRANSFER OF PROPERTY) ACT, 1949
22 OF 1949
"The object of the Bill is to safeguard the loss of revenue in the case of persons who dispose of their properties with the intention of leaving India and settling somewhere else. Following the issue of an Ordinance in Pakistan in December 1947, a corresponding Ordinance was promulgated in India in February 1948. This Ordinance was due to expire on the 6th August 1948 and was renewed on that date by another Ordinance called the Payment of Taxes (Transfer of Property) Ordinance, 1948, which is now being repealed by this Bill."-Gaz. of Ind., 1948, Pt. V, p. 620.An Act to make provision for the payment of taxes before transfers of property are registered in certain cases. WHEREAS it is expedient to make provision for the payment of taxes before transfers of property are registered in certain cases: It is hereby enacted as follows :- This Act has been extended- (a) along with all rules and orders made thereunder which were in force immediately before 31-12-1949 to the merged States, as defined by Taxation Laws (Extension to Merged States and Amendment) Act, 1949 (67 of 1949), Section 3. And if, immediately before the 26th day of August, 1949, there was in force in any of the merged Stales any law corresponding to the Payment of Taxes (Transfer of Property) Act, 1949, such corresponding law is repealed, Section 7(3), (b) along with all rules and orders made there under which were in force immediately before 18-4-1950, to the rest of India except the State of Jammu and Kashmir by the Opium and Revenue Laws (Extension of Application) Act, 1950(33 of 1950). Section 2. And if immediately before 18-4-1950 there was in force in any Purl B State, other than Jammu and Kashmir, or in the merged territory of Cooch Behar any law corresponding to the Payment of Taxes (Transfer of Property) Act. 1949, that law stood repealed- , Section 4; (c) along with all rules and orders made thereunder which were in force immediately before 8-10-1954 to the State of Jammu and Kashmir by Taxation Laws (Extension to Jammu and Kashmir) Act, 1954 (41 of 1954), Section (d) to States merged in the State of Bombay by Bom. Act, 1950, Section 3 (30-3-1950): Bombay is now split up into two States-Maharashtra and Gujarat, by Act 11 of I960: (e) to the Union territories of Dadra and Nagar Haveli, Goa, Daman and Diu and Pondicherry by the Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963), Section 3 and Schedule (1-5-1963).
SECTION 1 : Short title and extent
( 1 ) This Act may be called The Payment of Taxes (Transfer of Property) Act, 1949.
(2) It extends to the whole of India 3 (a) [a] The words 'except the State of Jammu and Kashmir' were omitted by the Taxation Laws (Extension to Jammu and Kashmir) Act, 1954(41 of 1954), Section 2 and Schedule (8-10-1954). [* * *].
SECTION 2 : Application of Act
This Act shall apply to any person- (i) who, on account of the setting up of the Dominions of India and Pakistan, or on account of civil disturbances or the fear of such disturbances, leaves or has, since the 14th day of August 1947, left any place in 3 (a) [a] Substituted for 'the States' by the Taxation Laws (Extension to Jammu and Kashmir) Act, 1954 (41 of 1954), Section 2 and Schedule (8-10-1954). [India] for any place outside India, or who, since the said date, has been residing in any place outside India; or
(ii) who, in the opinion of any of the Income-tax authorities specified in sub-section (1) of (section 5) of the Indian Income-tax Act, 1922 (11 of 1922), or a Custodian of Evacuee Property or a Collector, is likely to leave 3 (a) [a] Substituted for 'the States' by the Taxation Laws (Extension to Jammu and Kashmir) Act, 1954 (41 of 1954), Section 2 and Schedule (8-10-1954). [India] with the intention of settling in any place outside 3 (a) [a] Substituted for 'the States' by the Taxation Laws (Extension to Jammu and Kashmir) Act, 1954 (41 of 1954), Section 2 and Schedule (8-10-1954). [India], and in respect of whom a declaration that he is a person to whom this Act applies has been received from any such Income-tax authority. Custodian of Evacuee Property or Collector by the registering officer of the area in which any property belonging to such person is situate. 3 (b) [b] The Explanation, which was added by A.L.O., 1950, was omitted, i bid. [ * * * * * * * * * ]
SECTION 3 : Payment of taxes before registration of documents
( 1 ) Where any document required to be registered under the provisions of clause (a), clause (b), clause (c) or clause (e) of sub-section ( 1 ) of (section 17) of (Registration Act, 1908) purports to transfer, assign, limit or extinguish any right, title or interest in any property, other than agricultural land, belonging to any person to whom this Act applies, no registering officer appointed under the said Act shall register any such document, unless it is certified by the Income-tax Officer of the area in which the property is situate in respect of the person whose right, title or interest in the property is to be so transferred, assigned, limited or extinguished under the terms of the document that-
(a) such person is not liable to assessment or taxation under (Income-tax Act, 1922)
, (Excess Profits Tax Act, 1940) or, (Business Profits Tax Act 1947) (21 of 1947): or
(b) such person has either paid or made satisfactory provision for the payment of all existing or anticipated liabilities under any of the Acts specified in clause (a) of this sub-section; or
(c) the Income-tax Officer is otherwise satisfied that the registration of the document will not prejudicially affect the recovery of all existing or anticipated liabilities referred to in clause (b) of this sub-section.
(2) Every Income-tax Officer refusing to issue a certificate under the provisions of sub-section ( 1 ) shall make an order of refusal and record his reasons therefor and, on application made by any person claiming to be affected by such order, shall, subject to the payment of such fee as may be prescribed, furnish him with a copy of the order.
SECTION 4 : Recovery of taxes where property has been transferred without a certificate
(1) Where, in respect of the transfer made on or after the seventh day of February, 1948, 3 (a) [a] Substituted for the words 'in the States' by 3 A.L.O., 1956 (with retrospective effect from 1-11-1956). [in the territories which, immediately before the 1st November, 1956, were comprised in the States] of Bombay, West Bengal, Punjab, Bihar, Delhi and Ajmer, and in any 3 (c) [c] Substituted tor the words "that State", by 3 A.L.O., 1956. [other territory] on or after the date on which (Transfer of Property (India) Ordinance, 1948) was made applicable to 3 (c) [c] Substituted tor the words "that State", by 3 A.L.O., 1956. [that territory], of any right, title or interest in any immovable property, other than agricultural land, belonging to any person to whom this Act applies, the Income-tax Officer of the area where the property is situate is satisfied, after giving such person notice in this behalf for a period of not less than one month, that no certificate in the terms mentioned in (section 3) would have been issued to him if this Act had been in force on the date the transfer was made, he may forward a statement to the Collector showing the existing and anticipated liabilities by way of taxes in respect of all or any of the parties to the transfer.
(2) On receipt of any statement under sub-section (1), the Collector shall proceed to recover the total amount shown in such statement as if it were an arrear of land revenue, and for the purpose of such recovery proceedings he may treat the property transferred as aforesaid as if it belonged to all or any of the persons named in the statement.
SECTION 5 : Right of appeal
An appeal shall lie against the order of any Income-tax Officer refusing to issue a certificate under the provisions of the sub-section (2) of (section 3) to the Commissioner of Income-tax to whom the Income-tax Officer is subordinate, if presented to such Commissioner within thirty days from the date of the order, and the Commissioner may pass such orders thereon as he may think fit.
SECTION 6 : Effect of Act over other laws
The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
SECTION 7 : Bar of suit
No suit, prosecution or other legal proceeding shall lie against the Central Government or any person or authority in respect of anything which is in good faith done or intended to be done under this Act.
SECTION 8 : Power to make rules
3 (a) [a] S. 8 renumbered as sub-section (1) by Delegated Legislation Provisions (Amendment) Act (4 of 1986), S. 2 Sch. (15-5-86).3 (b) [b] Inserted, by Delegated Legislation Provisions (Amendment) Act.[(1)] The Central Government 3 (b) [b] Inserted, by Delegated Legislation Provisions (Amendment) Act. [, by notification in the official Gazette,] may make rules for the purpose of carrying into effect the objects of this Act, and, in particular, prescribe the fee payable under sub-section (2) of (section 3) .
[(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]
SECTION 9 : Effect of expiry of Ordinance XXI of 1948
On the expiry of the Payment of Taxes (Transfer of Property) Ordinance, 1948, (section 6) of (General Clauses Act, 1897) , shall apply as if the Ordinance had then been repealed by a Central Act.
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