(1)For the purpose of assessment of tax on any lands and buildings, whether residential or non-residential, self-occupied or tenanted, the annual value of such lands and buildings shall be such percentage of the sum obtained by adding the present market value of land and the estimated cost of erecting the building, as the Government may, by notification, determine:Provided that the annual value shall not exceed ten percent of the sum so obtained:Provided further that for different municipalities different percentage may be determined for different categories of lands and buildings.(2)The annual value of the building so determined shall be subject to a deduction of ten per cent for the cost of repairs and other expenses necessary for the proper maintenance of the building.(3)In the case of any land which is being used by erecting tents, temporary structures or structures, partially temporary for the purpose of accommodating marriage parties, circus shows or for any entertainment purpose or such other purpose, as may be specified in this behalf by the Municipality with the previous sanction of the Government, the annual value shall be ten per cent of the market value for the land.(4)In the case of any land on which no buildings has been erected, but on which a building can be erected, and on any land on which a building is in the process of erection, the annual value shall be fixed at five per cent of the estimated marketed value for the land.(5)The basis for assessing the present market value of the land and the cost of erecting the machinery thereon.(6)In the calculation of the annual value of any premises, no account shall be taken of the machinery thereon(7)The annual value as determined under this section, shall be rounded off to the nearest ten rupee.
