Section 10 in The U.P. Debt Redemption Rules, 1941
10. Calculation of net profits.
(1)In determining the area of the protected land to be mortgaged and the period for which the mortgage is to be granted, the Collector shall first calculate the net profits of the judgement-debtor's protected land as against which the decree is sought to be executed.(2)The gross profits of the judgement debtor's protected land shall be calculated in the manner prescribed by or under the provisions of the Uttar Pradesh Encumbered Estates Act, 1934 (XXV of 1934), for the calculation of the post-slumps profits of land. For the determination of net profits, deductions may be made from the gross profits so calculated on account of - (a) cost of management, and (b) short collections. Where the crops in the area in which the judgement-debtor's protected land is situated are specially liable to damage by flood, drought, or other natural calamity, a deduction from the gross profits may also be made on this account.(3)(a)The deduction made on account of cost of management should not exceed 10 per cent of the gross profits calculated in accordance with sub-rule (2).(b)The deduction made for short collections should take into account the character and circumstances of the tenants, and the case or difficulty with which collections are made. The deduction under this sub-rule should also not exceed 10 per cent of the gross profits calculated as aforesaid.(c)If a deduction is made for possible loss on account of agricultural calamities, this should be based on the average amount of remission of rent and revenue granted on this account in the previous ten years, and should not exceed 10 percent of the gross profits.(d)In no case shall the total of the deductions made by the Collector under sub-rule (2) exceed 25 percent of the gross profits.(4)The net profits calculated as above shall be presumed to remain uncharged throughout the term of mortgage.
