(1)The annual value of a holding shall be deemed to be the gross annual rental at which the holding may reasonably be expected to let.(2)In the case of a holding with a building or buildings used or occupied for the residence by the owner himself, the annual value of such holding shall be deemed to be an amount which is less by .twenty-five per cent than the valuation fixed on the letting basis tinder sub-section (1) above.(3)In the case of a holding containing building or buildings, vested in Government the annual value shall be deemed to be an amount which may be equal to but not exceeding six per centum of the cost, of erection of the building or buildings in addition to a reasonable ground rent or the land comprised in the holding:Provided that in estimating the annual value of a holding under this section, the value of any machinery and its foundation that may be on such holding, shall not be taken Into consideration.Explanation. - The "gross annual rent" shall not include the amount of municipal taxes when paid by the tenant.
