Section 140(1) in The U.P. Municipalities Act, 1916
(1)"Annual Value" means -(a)in the case of railway stations, colleges, schools, hotels, factories, commercial buildings and other non-residential buildings, twelve times the value arrived at on multiplying with multiplier to be fixed by rules in the monthly rate of rent per square foot of residential buildings fixed under clause (b) with the covered area of the buildings or open area of the land or both, as the case may be.(b)in the case of a building or land not falling within the provisions of clause (a), twelve times the value arrived at on multiplying the carpet area of the building, or the area of the land, by the applicable minimum monthly rate of rent per square foot of the carpet area in the case of building or the applicable minimum monthly rate of rent per square foot of the area in the case of land, as the case may be, and for this purpose the minimum monthly rate of rent per square foot shall be such as may be fixed once in every two years by the executive officer of the Municipality on the basis of the location of the building or the land, nature of the construction of the building, the circle rate fixed by the Collector for the purpose of the Indian Stamp Act, 1899 and the current minimum rate of rent in the area for such building or land and such other factors, and in such manner, as may be prescribed :Provided that where the annual value of any building would, by reason of exceptional circumstances, in the opinion of the Municipality, be excessive if calculated in the aforesaid manner, the Municipality may fix the annual value at any less amount which appears to it equitable.Explanation I. - For the purpose of calculation of annual value the carpet area shall be calculated as under :(i)Rooms-full measurement of internal dimension;(ii)Covered Verandah-full measurement of internal dimension;(iii)Balcony, Corridor, Kitchen and Store-50 per cent measurement of internal dimension;(iv)Garage-one-fourth measurement of internal dimension;(v)Area covered by bathroom, latrines, portico and staircase shall not form part of the carpet area.Explanation II. - The standard rent, the agreed rent or the reasonable annual rent of a building for the purposes of the Uttar Pradesh Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972 shall not be taken into account while calculating the annual value of the building.
