Section 204(1) in The Gujarat Panchayats Act, 1993
(1)If the income of a village panchayat falls below what in the opinion of a taluka panchayat is necessary for the proper discharge of the duties specified in Schedule 1, the taluka panchayat may after having given such panchayat an opportunity of being heard, require it to take steps within six months, to increase its income such extent as the taluka panchayat considers necessary. If the village panchayat fails to take adequate steps to increase its income to the required extent, the taluka panchayat may require it to levy any of the taxes or fees specified in section 200 or increase the rate at which any of the such taxes and fees is levied and it shall be the duty of the panchayat to comply with the requirement:Provided that the taluka panchayat shall not compel the panchayat to levy any tax or fee or increase the rate thereof beyond the maximum rate prescribed in this behalf.
