Letter (Ms.) No.155, Grant of Lease of Government Lands, 2005
The Revenue Department, Secretariat, Chennai, issued Letter (Ms.) No.155 dated 10 March 2005, giving interim instructions on lease amounts for government land in Municipal and Corporation areas. Pending an amendment to G.O.Ms.No.460, Revenue Department, dated 4 June 1998, District Collectors were to collect 7% of land cost for non-commercial leases and 14% for commercial leases, inclusive of additional surcharge.
Purpose
The Revenue Department, Secretariat, Chennai, issued Letter (Ms.) No.155 dated 10 March 2005 to clarify how lease amounts should be collected for government land in Municipal and Corporation areas. The instructions were sent to the Special Commissioner and Commissioner of Land Administration, with a request to issue directions to all District Collectors.
The clarification was necessary because G.O.Ms.No.460, Revenue Department, dated 4 June 1998 did not specifically state whether its revised lease rates applied only to land leased in Village Panchayat areas. The Revenue Department stated that an amendment to that Government Order was under examination.
Rates under the 1998 Government Order
G.O.Ms.No.460, Revenue Department, dated 4 June 1998 revised annual charges for government land leases. The rates took effect from 4 June 1998:
- Commercial leases carried lease rent of 2% of land cost, Local Cess of 2%, and Local Cess Surcharge of 10%, making a total of 14% of land cost.
- Non-commercial leases carried lease rent of 1% of land cost, Local Cess of 1%, and Local Cess Surcharge of 5%, making a total of 7% of land cost.
Different treatment by local area
Letter (Ms.) No.155 dated 10 March 2005 explains that Local Cess and Local Cess Surcharge are chargeable only in Panchayat and Panchayat Union areas. They are not chargeable in areas under Municipalities and Corporations.
The letter states that an additional surcharge applies instead:
- In Municipal areas, the additional surcharge is 13% of the lease rent.
- In Corporation areas, the additional surcharge is 23% of the lease rent.
Interim collection in Municipal and Corporation areas
Pending amendment of G.O.Ms.No.460, Revenue Department, dated 4 June 1998, District Collectors were to collect the following amounts for government land leases within Municipal areas and Corporation limits:
- 7% of land cost for non-commercial purposes, inclusive of additional surcharge.
- 14% of land cost for commercial purposes, inclusive of additional surcharge.
These instructions are relevant to people or organisations leasing government land in Municipal or Corporation areas. The document concerns government land leases and does not set charges for private land sales.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
What rate applies to a non-commercial government land lease in a Municipal or Corporation area?
Pending amendment of the earlier Government Order, District Collectors were instructed to collect 7% of the land cost, inclusive of additional surcharge.
What rate applies to a commercial government land lease in a Municipal or Corporation area?
District Collectors were instructed to collect 14% of the land cost, inclusive of additional surcharge, pending the amendment.
Are Local Cess and Local Cess Surcharge payable in Municipalities and Corporations?
No. Letter (Ms.) No.155 dated 10 March 2005 states that Local Cess and Local Cess Surcharge apply only in Panchayat and Panchayat Union areas.
Does this guidance apply to the purchase of private land?
The document deals with leases of government land. It does not provide charges or instructions for private land sales.
