The Excess Profits Tax Act, 1940

( ACT NO. XV OF 1940 )

An Act to impose a tax on excess profits arising out of certain businesses. 1♣♠ ♦

WHEREAS it is expedient to impose a tax on excess profits arising out of certain businesses in the conditions prevailing during the present hostilities;
It is hereby enacted as follows:-



1. Short title, extent and commencement

2. Definitions

3. Excess profits tax authorities

4. Charge of tax

5.Application of Act

6.Standard profits

7. Relief on occurrence of deficiency of profits

7A. Special provision for chargeable accounting period failing partly before and partly after the end of March, 1941

8. Successions and amalgamations

9. Inter connected companies

10. Artificial transactions

10A. Transactions designed to avoid or reduce liability to excess profits tax

11A. Agreement for avoidance of double taxation in Pakistan and India

11. Relief in respect of double excess profits taxation

12. Allowance of excess profits tax in computing income for income tax purposes

13. Issue of notice for assessment

14. Assessments

14A. Power to make provisional assessments

15. Profits escaping assessments

16. Penalties

17. Appeals

18. Appeal to Commissioner against Appellate Assistant Commissioner’s orders imposing penalties or enhancing assessments or penalties

19. Power of revision

20. Rectification of mistakes

21A. Application of Income tax Act before 15th day of August 1947, with certain modifications

21. Application of provisions of Act X1 of 1922

22. Income tax papers to be available for the purposes of this Act

23. Failure to deliver returns or statements

24. False statement and declaration

25. Institution of proceedings and composition of offences

26. Power of National Board of Revenue to grant relief in special cases

26A. Further powers of National Board of Revenue to grant certain relief

27. Power to make rules