Section 23(1) in Tamil Nadu Village Panchayats (Assessment and Collection of Taxes) Rules, 1999
(1)The tax on agricultural land as referred to in sub-section (3) of section 171 of the Act shall be leviable by the village panchayat for a specific purpose and shall decide the rate of tax, period of tax and total period to levy of such tax based on the purpose and paying capacity of the assessee: -(a)repairs to irrigation channels and tanks in respect of which no kudimaramath fee is levied under sub-section (2) of section 133 of the Act;(b)construction, maintenance, repair, extension or improvement of water works or drainage works;(c)lighting by electricity or any other means;(d)construction of a road, or a bridge or culvert;(e)protection of trees, plants and crops; or(f)raising matching contribution for any programme of development specified in panchayat development Schematic Budget or that may be included in it, from time to time, and the levy of such tax shall take effect from the first day of the half-year or the year following that in which it is sanctioned;(g)construction or maintenance of soil conservation works:Provided that, the tax for the purpose specified in clause (g) shall be leviable on such agricultural land as is benefited by the construction or maintenance of works referred to in that clause;(h)for any other purpose which will sub-serve the causes of agricultural development and improve the productivity of agricultural land.Explanation. - For the purpose of this rule, the tax on agricultural land levied by the village panchayat is in no way related to land revenue, local cess or local cess surcharge collected by the Revenue Department.
