- There shall be opened three accounts of the Fund, namely :-(1)Devolution Account:(i)The amount of entry tax which is transferred every' year to the urban local bodies as a compensation to the Octroi as per budget provision shall be transferred to this account. But the actual amount released to the urban local bodies shall be ten per cent more than the last year or the actual net income whichever is less treating the year 2000-2001 as base year.(ii)The Finance Department while making provision in the budget under clause (i) on the basis of net income of the tax, an amount equal to 2% shall be deducted as collection charges.(iii)The stamp duty and other compensation payable to the urban bodies under the Act and which are to be paid directly shall also be transferred through this account.(2)Infrastructure Account :(i)The remaining amount, after the amount of entry tax provided in the budget and which has been transferred to the Devolution Account under sub-clause (i) of clause (1) of Rule 7 treating the year 2000-2001 as base year, shall be transferred to the Infrastructure Account.(ii)The grant to be received from the State Government on the basis of the recommendations of the Finance Commission for the improvement of basic services.(iii)The grant to be given for the specific capital works by the State Government shall also be transferred to the Infrastructure Account.(3)Repayment Account- The amount to pay off the liabilities on behalf of urban bodies Institutional Finance and State Government shall be transferred and deposited into this Account from the Infrastructure and Devolution Account as per order of the Committee, provided that for transfer of any amount from Devolution Account consent of the concerning urban body shall be obtained.
