THE PAYMENT OF TAXES (TRANSFER OF PROPERTY) ACT,
1949
Year : 1949
Act :
THE PAYMENT OF TAXES (TRANSFER OF PROPERTY) ACT, 1949.ACT NO. 22 OF
1949.[22nd April, 1949.] W
An Act to make provision for the payment of
taxes before transfers of property are registered in certain
cases.
1.Short title and extent.
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 1***.
2.Application of
Act.
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
2*[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 2*[India] with the intention
of settling in any place outside 2*[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* * * * *
3.Payment of taxes before registration of
documents.
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 the Indian Registration Act, 1908 (16 of 1908),
purports
1
The words "except the State of Jammu and Kashmir", omitted by Act
41 of 1954,
s. 2 and Sch.
2 Subs. by s. 2 and Sch., ibid., for "the States".
3 The
Explanation added by the A. O. 1950, omitted by s. 2 and
Sch.,
ibid.
Extended to Dadra and Nagar Haveli, Goa, Daman and Diu,
and
Pondicharry (w.e.f. 1-4-1963) -by Reg. 3 of 1963, s. 3(1) &
Sch.
618.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 the
Indian Income-tax Act, 1922 (11 of 1922), the Excess Profits Tax Act, 1940 (15
of 1940), or the
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.
4.Recovery of taxes where property has been transferred without
acertificate.
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, 1*[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 2*[other territory] on or
after the date on which the Transfer of
Property (India) Ordinance, 1948 (3
of 1948) was made applicable to
3*[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
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1
Subs. by the Adaptation of Laws (No. 3) Order, 1956 for "in the
States".
2
Subs., ibid., for "other State".
3 Subs., ibid., for "that
State".
619.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.
5.Right of
appeal.
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 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.
6.Effect of Act over other
laws.
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.
7.Bar of suits.
7. Bar of
suits. 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.
8.Power to make
rules.
8. Power to make rules. 1*[(1)] The Central Government
may,
1*[by notification in the Official gazette,] 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
3.1*[(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.]
9.Effect of expiry of Ordinance 21 of 1948.9. Effect of expiry of
Ordinance 21 of 1948. On the expiry of the
Payment of Taxes (Transfer of
Property) Ordinance, 1948, section 6 of the General Clauses Act, 1897 (10 of
1897) shall apply as if the
Ordinance had then been repealed by a Central
Act.
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1
Renumbered and ins. by Act 4 of 1986, s. 2 & Sch. (w.e.f.
15-5-1986).
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