Tamil Nadu Village Panchayats (Assessments and Collection of Taxes) Rules, 1999

What the Rules govern

The Tamil Nadu Village Panchayats (Assessments and Collection of Taxes) Rules, 1999 regulate tax assessment and collection by Village Panchayats. The Executive Authority normally determines the tax payable by each person or property. If the person exercising the Executive Authority's functions is liable, the Village Panchayat makes the assessment.

The Rules require a signed receipt for every tax payment. It must record the payment date, payer's name, type and period of tax, tax amount and any interest collected.

House tax assessment

The Tamil Nadu Village Panchayats (Assessments and Collection of Taxes) Rules, 1999 allow each Village Panchayat to assess and collect house tax based on plinth area and the applicable basis under the Tamil Nadu Panchayats Act, 1994. House tax may be levied half-yearly or annually, as notified by the Government.

Key provisions include:

• Houses may be grouped into classes for calculating proportionate or progressive tax, with at least six classes.
• Before first imposing a tax or increasing a rate, the Village Panchayat must publish notice in a Tamil newspaper, display it at its office and specified local places, and announce it by beat of drum.
• The notice must allow at least one month for objections, which must be considered before the resolution is passed.
• The Assessment Book records the owner, occupier, house classification, tax due and relevant year or half-year.
• Public notice must state where and when the Assessment Book can be inspected.

Changes, objections and revisions

The Village Panchayat may correct inadequate assessments, omissions, and clerical or arithmetic errors. An assessment cannot be increased through such a correction without giving the affected person a reasonable opportunity to explain why it should not be changed.

Between general revisions, the Executive Authority may add or remove houses, change valuation or classification, alter tax, or update an owner's name following a transfer. Updating the Assessment Book does not itself give the transferee legal title.

Special notice is required when a house is first assessed or its tax is individually increased between general revisions. Objections must reach the Village Panchayat within sixty days for the Government, a Railway Administration or a company, and within thirty days in other cases. Final orders on revision petitions must ordinarily be passed within two months.

General revision and exemptions

The Assessment Book must generally be revised once every five years, although the Inspector may postpone, stay or cancel a revision in the circumstances stated in the Rules. Listed exemptions include qualifying public worship buildings, specified choultries, public educational buildings, hostels and libraries, certain charitable buildings, protected ancient monuments not used as residences or public offices, and charitable hospitals and dispensaries.