The Nagaland Profession,Trades,Celling& Employment Taxation Act,1968

THE NAGALAND ACT 4 OF 1968 
THE NAGALAND PROFESSIONS, TRADES, CALLING AND  
EMPLOYMENTS TAXATION ACT, 1968. 
Received the assent of the President on the 27th September, 1968 
[Published in the Nagaland Gazette-Extraordinary, dated 28th October, 1968] 
 An Act to levy a tax on professions, trades, callings and employments. 
Preamble. – WHEREAS it is necessary to make an addition to the revenues of 
Nagaland and, for that purpose, it is expedient to impose a tax on professions, trades, callings 
and employments; 
It is hereby enacted in the Nineteenth Year of the Republic of India as follows:- 
PRELIMINARY  
 Short title, extent and commencement. – 1. (1) This Act may be called the 
Nagaland Professions, Trades, Callings and Employments Taxation Act, 1968. 
(2) It extends to the whole of Nagaland. 
(3) It shall come into force on such date as the State Government may, by notification in 
the Official Gazette, appoint. 
Definitions. – 2. In this Act, unless there is anything repugnant in the subject or context. 
(a) “assessing authority” in a particular area means the Superintendent referred in 
section 7 exercising jurisdiction in that area. 
(b) “person” includes a company, firm or other association of persons; 
(c) “prescribed” means prescribed by rules made under this Act; 
(d) “previous year” means twelve months ending on the 31st March next preceding the 
year for which the assessment is to be made; 
(e) “Principal officer” means with reference to – 
(i)    a Government, the head of an office or the disbursing officer, 
(ii)  a local authority, company, firm or other association of persons, the Chairman, 
Secretary, Treasurer, Manager or Agent of such local authority, Company, firm 
or other association or person; 
(f) “State” means the State of Nagaland; and 
(g) “total gross income” means aggregate of income derived from all sources. 
 
 
 CHAPTER  I 
LIABILITY TO AND CHARGE OF TAX 
 Liability to tax. –  3. As from the date to be notified by the Government in the 
Official Gazette 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 in respect of such profession, trade, calling or employment and in 
additions 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 for the purposes of this section a person on leave shall be deemed to be 
a person in employment. 
Rates of tax . – 4. The tax shall be levied at the rates specify in the Schedule annexed 
to this Act. 
Determination of tax. – 5. The tax payable by any person under this Act shall be 
determined with reference to his total gross income during the previous year from his 
profession, trade, calling or employment: 
Provided that the tax payable by any person shall not exceed two hundred and fifty 
rupees for any financial year. 
6. The provisions of this Act shall not apply to a member of the Armed Forces of 
India or to a Co-operative Society registered or deemed to have been registered under the 
Assam Co-operative Societies Act, 1949 (Assam Act 1 of 1950). 
 
CHAPTER  II 
TAXING AUTHORITIES 
 Taxing Authorities. – 7. (1) The State Government may, for carrying out the 
purposes of this Act, appoints a Commissioner of Taxes, and such other persons to assist him 
as it thinks fit and their powers and duties and relation with one another shall be such as may 
be prescribed. 
(2) All persons appointed under sub-section (1) shall be deemed to be Public Servants 
within the meaning of section 21 of the I.P.C. (Act 45 of 1860). 
 
 
CHAPTER  III 
ASSESSMENT 
 
 Returns. – 8. (1) Every person liable to pay tax under this Act shall submit to the 
assessing authority a return in such form and within such time as may be prescribed: 
Provided that a person in respect of whom the tax has been deducted under the 
provisions of section 12 shall, subject to the provisions in sub-section (3) thereof, be 
exempted from the liability to submit a return under this sub-section. 
(2) In the case of any person who has not furnished a return under sub-section (1) in 
spite of his ability to pay tax under his Act for any financial year, the assessing authority may 
serve in that year a notice, in the prescribed form, or such person requiring him to furnish the 
returns and such person shall thereupon furnish the return within the period specified in the 
notice: 
Provided that any person offering to pay tax at the highest rate specified in the 
Schedule shall not be required to submit any return or to produce any evidence. 
Assessment. – 9. (1) If the assessing authority is satisfied that a return furnished 
under section 8 is correct and complete he shall, by an order in writing, assess the person and 
determine the tax payable by him on the basis of such return. 
(4) If the assessing authority is not satisfied that a return furnished under section 8 is 
correct and complete, he shall serve on person concerned a notice requiring him, on the date, 
and at the hour and place to be specified therein, either to attend in person or to produce or 
cause to be produced evidence in support of the return. 
(3) On the day specified in the notice under sub-section (2) or as soon afterward as 
may be, the assessing authority, after hearing such evidence as may be produced and such 
other evidence as he may require shall, by an order in writing, assess the person and 
determine the tax payable by him. 
(4) If any person fails to make a return as required by section 8 or having made the 
return fails to comply with the terms of the notice issued under sub-section (2), the assessing 
authority shall, by an order in writing, assess to the best of his judgment the person and 
determine the tax payable by him. 
Provided that before making assessments, the assessing authority may allow the 
person such further time as he thinks fit to make the return or comply with the terms of the 
notice issued under sub-section (2) 
Assessment of escaped tax. – 10. If for any person, any person has not been assessed 
or has under-assessed for any financial year the assessing authority may, notwithstanding 
anything contained in sub-section (2) of section 8, at any time within three years of the end of 
that year, serve on the person liable to pay the tax, a notice containing all or any of the 
requirements which may be included in a notice under sub-section (2) of section 8 and may 
proceed to assess or reassess him and the provisions of this Act, shall, so far as may be apply 
accordingly as if the notice were a notice issued under that sub-section: 
Provided that the tax shall be charged at the rate at which he would have been charged 
if the person would not have escaped assessment, or full assessment as the case may be. 
Rectification of mistakes. – 11.(1) The authority which made an assessment or 
passed an order on appeal or revision in respect thereof may of his own motion, and shall if 
an application is filed in this behalf, within three years, from the date of such assessment or 
order rectify any mistake apparent from the record of the case: 
Provided that no such rectification having adverse effect upon an assessee shall be 
made unless the assessee have been given a reasonable opportunity of being heard. 
(2) Where any such rectification has the effect of reducing the assessment, the 
assessing authority shall order any refund which may be due to such person. 
(3) Where any such rectification has the effect of enhancing the assessment or 
reducing the refund, the assessing authority shall serve on the person a notice of demand in 
the prescribed form specifying the sum payable, and such notice of demand shall be deemed 
to be issued under section 18 and the provisions of this Act shall apply accordingly. 
Deduction of tax at sources. – 12. (1) The tax payable under this Act by any person 
in the employment of any Government, local authority, company, firm or other association or 
persons shall, in the manner prescribed be deducted by the principal officer thereof from any 
amount payable to such person on behalf of such Government, local authority, company, firm 
or other association of persons. 
(2) The principal officer making any deduction under sub-section (1) shall submit to 
the assessing authority such returns and within such times may be prescribed. 
(3) The assessing authority may take action, if he thinks fit, in the manner provided by 
sub-section (2) of Section 8 and by section 9 in the case of any person in respect of whom hw 
is satisfied that no return under sub-section (2) has been furnished or a return furnished under 
that sub-section is inaccurate or deficient. 
(4) Where any principal officer fails to deduct any tax or after deducting fails to pay it 
as required by or under this Act, he shall, without prejudice to any other consequences he 
may incur under this Act, be deemed to be a person in default in respect of the tax not 
deducted or paid and all the provisions of section 20 shall apply to him: 
Provided that the assessing authority shall not make a direction under sub-section (2) 
of section 20 for the recovery of any penalty from such person unless it is satisfied that such 
person has willfully failed to deduct and pay the tax. 
Requisition for deduction of tax. – 13. The assessing authority may require principal 
officer to deduct, from any payment to a person, any tax or penalty due from him and the 
principal officer shall comply with such requisition. 
Indemnity. – 14. The principal officer deducting or paying any tax under the 
provisions of this Act is hereby indemnified for such deduction or payment thereof. 
 
 
CHAPTER  IV 
APPEALS 
 Appeals. – 15. Any persons aggrieved by an order passed by an assessing authority 
under this Act may in the prescribed manner appeal within thirty days of receipt of such 
order, to the prescribed officer: 
Provided that such officer may admit it after the expiration of thirty days, if he is 
satisfied that for reasons, beyond the control of the appellant or for any other sufficient cause 
it could not be filed within time: 
Provided further that no appeal shall lie against an order of assessment under sub-
section (4) of section 9. 
Revision. – 16. (1) The Commissioner may, out of his own motion call for and 
examine the records of any proceedings which have been  taken under this Act by any officer 
subordinate to him and revise, subject to the provisions of this Act, and after such enquiry as 
may be deemed necessary, any order passed in such proceedings: 
Provided that no order prejudicial to a person shall be passed under this sub-section 
without giving him a reasonable opportunity of being heard. 
(2) The Commissioner may also on petition filed within sixty days of the service of 
the order passed under section 15 and after giving the petitioner an opportunity of being 
heard, pass such order as he thinks fit. 
Delegation of powers. -  17. The Commissioner may by notification in Official 
Gazette delegates the powers under section 16 to any other officer. 
 
CHAPTER  V 
DEMANDS, PAYMENT AND RECOVERY 
 
 Notice of demand. – 18. Where any tax or penalty is payable in consequence of any 
order passed under or in pursuance of this Act, the assessing authority shall serve on the 
person concerned a notice of demand in the prescribed form specifying the amount so 
payable. 
Dues when payable. – 19. (1) The tax or penalty payable under this Act shall be paid 
in the manner hereinafter provided. 
(2) Every person liable to furnish return under sub-section (1) of section 8 shall, 
before he furnishes the return pay into a Government treasury the full amount of tax due on 
the basis of such return and shall furnish, along with the return, a receipt for such treasury in 
token of such payment. 
(3) The principal officer deducting any tax under section 12 shall pay the amount to a 
Government treasury within thirty days of such deduction and shall furnish along with the 
returns required to be made under sub-section (3) thereof, a receipt from such treasury in 
token of such payment. 
(4) The amount of tax or penalty due under this Act – 
(a) in excess of payment already made, or  
(b) where no payment has been made, 
Shall be paid any such date as may be specified in the notice of demand and, where  no such 
date is specified, it shall be paid within thirty days of service of the notice of demand. 
Mode of recovery. – 20. (1) Where any tax or other dues payable under this Act is 
not paid on or before the due date the person shall be deemed to be in default: 
Provided that where person has presented an appeal or petition for revision and such 
appeal or petition for revision has been admitted, he shall not be deemed, for so long as the 
appeal or petition for revision remains pending, to be in default in respect of the dues in 
dispute. 
(2) Where a person is in default, the assessing authority may, in his discretion direct 
that, in addition to the amount due a sum not exceeding that amount shall be recovered from 
the defaulter by way of penalty. 
(3) Where a person is in default, the assessing authority shall, unless action has been 
taken under section 13, order that the amount due shall be recoverable as public demand 
under the Bengal Public Demands Recovery Act, 1913 (Bengal Act 3 of 1913) and shall 
proceed to realize the amount due as such. 
Refunds. – 21. Any person who has paid any tax or penalty in excess of the amount 
due under this Act may, within ninety days of the service of the order of assessment or that 
passed on appeal or revision as the case may be apply for a refund and the amount paid in 
excess shall be refunded accordingly. 
 
CHAPTER  VI 
OFFENCES AND PENALTIES  
Failure to make returns, etc. – 22. Whoever – 
(1) fails, without reasonable cause, to submit in due time any return required by or 
under the provisions of this Act or submits a false return; or  
(2) fails or neglects, without reasonable cause, to comply with any requirement 
made of, or any obligation laid on him under the provisions of this Act, or 
(3) fraudulently evades payment of any tax due under this Act or cancels his 
liability to such tax; shall on conviction before a Magistrate and in addition to any tax or 
penalty or both that may be due from him be punishable with imprisonment which may 
extend to six months or with fine not exceeding five hundred rupees or with both. 
CHAPTER  VII 
MISCELLANEOUS 
 Power to compel attendance, etc. -  12 (1) The assessing authority may, by a written 
notice require any person to attend before him and to give evidence or produce document, as 
the case may be, for the purpose of determining the liability of himself or of any other person 
to taxation under this Act. 
(2) Such person shall on such requisition be legally bound to attend and give evidence 
or produce documents, if in his power and possession, as the case may be, at the place and 
time specified in such notice, and whoever is required to produce a document may either 
attend and produce it or cause it to be produced. 
Information to be furnished by the Principal Officer. – 24. The assessing authority 
may demand from the principal officer of any Government, local authority, company, firm or 
other association of persons the names and complete addresses of all or any of the persons 
who have been, or are, in the employment of such Government, local authority, company, 
firm or other association of persons and such principal officer shall thereupon furnish the 
assessing authority with the names and addresses so demanded. 
Prosecution suits or other proceedings. – 25. No suit shall be brought in any civil 
court to set aside or modify any assessment made or order passed under the provision of this 
Act, and no prosecution, suit or other proceedings shall lie against any officer of the 
Government for anything in good faith done or intended to be done under this Act or the rules 
made thereunder. 
Period of limitation. – 26. In computing the period of limitation prescribed for any 
appeal or a revision, the day on which the order complained was made and the time requisite 
for obtaining a copy of such order shall be excluded. 
Place of assessment. – 27. Any person liable to pay tax under this Act shall ordinarily 
be assessed by the assessing authority of the area in which he carries on a trade, or follows a 
profession or calling or is in employment. 
Power to exempt .- 28. The State Government may, by notification in the Official 
Gazette, either wholly or partially and subject to such conditions as it may think fit to 
prescribe, exempt any person from the payment of tax under this Act, for any specified period 
or occasion or as regards any specified class of persons. 
Power to make rules. – 29. (1) The State Government may, subject to the condition 
of previous publication, make rules for carrying out the provisions of this Act. 
(2) Every rule made under this section shall be laid, as soon as may be after it is made 
before the Nagaland Legislative Assembly while it is in session for a total period of fourteen 
days which may be comprised in one session or in two successive session, and if, before the 
expiry of the session in which it is to laid or the session, immediately following, the Nagaland 
Legislative Assembly agree in making any modification in the rules or the Nagaland 
Legislative Assembly 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 annulments shall be without prejudice to the validity of anything 
previously done under that rule. 
 
 
 
 
 
 
THE SCHEDULE  
( See Section 4 ) 
RATES OF TAX 
Where the total gross annual income -   Amount of tax 
1. Does not exceed Rs. 3,500          Nil 
2. Exceeds Rs. 3,500 but does not exceed Rs. 5,000  Rs. 24 
3. Exceeds Rs. 5,000 but does not exceed Rs. 10,000 Rs. 36 
4. Exceeds Rs. 10,000 but does not exceed Rs. 15,000 Rs. 50 
5. Exceeds Rs. 15,000 but does not exceed Rs. 20,000 Rs. 70 
6. Exceeds Rs. 20,000 but does not exceed Rs. 25,000 Rs. 100 
7. Exceeds Rs. 25,000 but does not exceed Rs. 30,000 Rs. 150 
8. Exceeds Rs. 30,000 but does not exceed Rs. 35,000 Rs. 200 
9. Exceeds Rs. 35,000      Rs. 250 
 

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