(3)In the case of lands held on any other tenure the annual rent payable to the land holder, sub-landholder, or any other intermediate land holder, together with any water rate shall be taken to be the annual value and where such lands are held by owner himself or a tenant free of rent or favourable rent the amount of value shall be calculated according to the rate of rent usually paid by an occupancy raiyat for similar lands in the neighbourhood, along with any water rate payable for the irrigation of the lands so occupied.
