Section 350 in Bihar Board's Miscellaneous Rules, 1958
350. Method of calculating capitalised value of all permanent periodical payments to or by Government.
- The Government of India in their Resolution No. 3744-A, dated the 24th August, 1898 have prescribed the following rules for calculating the capitalised value of all permanent periodical payments to or by Government:(1)When Government is entitled to receive a periodical payment in perpetuity and existing orders authorise the commutation of that payment for a single payment, the said single payment should not be less than thirty times the amount annually paid. If the payer is not willing to commute at this rate the right to receive periodical payment should not be given up.(2)When Government is under an obligation to make a periodical payment in perpetuity and existing orders authorize the commutation of that payment for a single payment, the said single payment should not be more than twenty times the amount annually paid. If the payee is not willing to commute at this rate, the system of periodical payment should continue.These rules apply only to cases of actual commutation of payment. They do not affect any orders relating to the valuation of a grant, assessment, or other concession or demand, when such valuation is made for official purposes only, and not for the calculation of an actual payment.
