(1)The rates of levy of any tax under Section 37 shall be determined -(a)by the Municipal Council or Gram Panchayat with the previous sanction of the Government, in case the tax is levied by it of its own motion ; and(b)by the Government, in case the tax is levied at their direction:Provided that rates of any such tax levied as addition to the taxation under the head of profession tax, shall be subject to the limits specified in any law for the time being in force governing the Municipalities or Gram Panchayats, as the case maybe, or prescribed by rules made under this Act:Provided further that the rates of any such tax levied by Municipal Council or Gram Panchayat as an addition to the taxation under the head of property tax shall not exceed five per cent per annum in the case of properties taxed on their annual rental value, one-fourth per centum per annum in the case of properties taxed on their capital value and four rupees per annum for every three hundred square meters or part thereof in the case of properties taxed on their extent :Provided also that the rates of any such tax levied by a Gram Panchayat as an addition to the taxation under the head of land cess or local cess shall not exceed thirty seven paise in the rupee of the annual rental value of the land.(2)The Municipal Council or Gram Panchayat may, with the previous sanction of the Government, and shall if so directed by them, alter the rates of levy of any such tax.
