Section 7 in Tamil Nadu Village Panchayats (Assessment and Collection of Taxes) Rules, 1999
7. Classification of houses.
(1)When a proportionate rate has been adopted by the village panchayat, it may group the houses in the village into classes to simplify the calculation and the collection of the tax.(2)When a progressive rate has been adopted by the village panchayat, it shall -(i)specify the principles of classification (as that a certain sum, which shall be tax-free, shall be deducted from the assessment of each house, or that the progression shall be from a certain percentage in the lowest to a certain percentage in the highest class); and(ii)settle the precise number and limits of each class.(3)The village panchayat shall not, in either case, so arrange the classes as to affect substantially the principle of taxation, whether proportionate or progressive, and the number of classes shall, in no case, be less than six.(4)Before passing a resolution imposing a tax for the first time or increasing the rate of an existing tax, the village panchayat shall publish a notice in at least one Tamil newspaper and also on the notice board of the office of the village panchayat and in such other places within the village panchayat limits as may be specified by the village panchayat and by beat of drum, of its intention proposed to levy any tax or increase the existing rate of tax, fixing a reasonable period not being less than one month for submission of objections and consider such objection, if any, received within the stipulated period before passing the said resolution.
