Clause (2) of article 276 of the Constitution
specifies that the total
amount payable in respect of any one person to the State or to any one
municipality, district board, local board or other local authority in
a State by way of taxes on professions,
trades, callings and
employments leviable by a State Legislature under clause (1) of that
article shall not exceed two hundred and fifty rupees per annum. The
proviso to that clause, however, enables the continuance of the levy
of such tax at a rate exceeding two hundred and fifty rupees per annum
in any State, municipality, etc., if in the financial year immediately
preceding the commencement of Constitution there was in force in that
State, municipality, etc., any such tax exceeding that rate.
2. Some of the State Governments have
represented that this celling
of two hundred and fifty rupees which was fixed in 1949, needs to be
revised upwards taking into consideration the price rise and other
factors. It is also pointed out that the profession tax
present, become almost regressive because of the ceiling since even
people with high salaries have to pay this tax at only the maximum
amount of two hundred and fifty rupees per annum. The upward revision
of profession tax will also help the State Governments in
3. It is accordingly proposed to amend
clause (2) of article 276 of
the Constitution to increase the ceiling of profession tax from two
hundred and fifty rupees per annum to two thousand and five hundred
rupees per annum. As the proviso to this clause
is no longer
relevant, it is proposed to omit it.
4. The Bill seeks to achieve the above objects.
The 10th August, 1988.
THE CONSTITUTION (SIXTIETH
AMENDMENT) ACT, 1988
[20th December, 1988.]
An Act further to amend the Constitution of India.
BE it enacted by Parliament in the Thirty-ninth
Year of the Republic
of India as follows:-
1. Short title.-This Act may be
called the Constitution (Sixtieth
Amendment) Act, 1988.
2. Amendment of article 276.-In article
276 of the Constitution, in
(a) for the words "two hundred
and fifty rupees", the words "two
thousand and five hundred rupees" shall be substituted;
(b) the proviso shall be omitted.