3. Levy and collection of tax

(1) Subject to the provisions of Article 276 of the Constitution of India, and of this Act there shall be levied and collected tax on professions, trades, callings and employments.

(2) Every person who carries on a trade either himself or by an agent or representative or who follows a profession or calling other than agriculture or who is in employment either wholly or in part in Madhya Pradesh and who falls under one or the other classes specified in column (2) of the Schedule shall, on the basis specified in the Schedule in respect thereto be liable to pay tax at the rate mentioned against the class of such persons in column (3) of the said Schedule :

Provided that notwithstanding anything contained in the Schedule, where a person is covered by more than one entry of the Schedule, tax under this Act shall be payable by such person at the highest rate of tax specified in respect of such entries.

(3) Notwithstanding anything contained in sub-section (2), any person falling in any of the classes specified in column (2) against serial No. 2 of the schedule or other such persons as the State Government may, by notification, specify shall have the right to opt, in the prescribed manner, to pay tax on the annual income as specified in column (2) against serial No.1 in lieu of the tax payable by him, and on exercising the option such person shall be liable to pay tax at the rate specified in column (3) against the category specified in column (2) against serial number 1 applicable to him, and for that purpose reference to salary or wage in serial No. 1 shall be construed as a reference to the income of such person.

(4) Every person who opts under sub-section (3) for payment of tax under entry at serial No. 1 of the Schedule shall, subject to the provisions of this Act, pay for each financial year a tax at the rate specified in Serial No.1 of the Schedule if his income during the previous year exceeds forty thousand rupees.

(5) Any person who is in employment in Madhya Pradesh shall be deemed to be in employment even though he may be absent therefrom on leave or otherwise.