G.O.(Ms) No.154, Pooled Assigned Revenue to Rural Local Bodies, 2014-15
The Rural Development and Panchayat Raj (PR-1) Department issued Government Order (Ms) Number 154, dated 15 December 2014, sanctioning Rs.866,03,63,996 as pooled assigned revenue for rural local bodies for 2014-15. It distributes revenue derived from the Surcharge on Stamp Duty and Entertainment Tax among Village Panchayats, Panchayat Unions and rural development scheme funds.
What the government order does
Government Order (Ms) Number 154 of the Rural Development and Panchayat Raj (PR-1) Department sanctions and releases Rs.866,03,63,996 as assigned revenue due to rural local bodies for 2014-15. The amount consists of Rs.860,12,80,468 from the Surcharge on Stamp Duty and Rs.5,90,83,528 from Entertainment Tax.
The revenue continues to be pooled at the State level. The allocation is based on the previous year's actual tax collections, with adjustments for differences between tentative allocations and actual collections.
Distribution to rural local bodies
The Rural Development and Panchayat Raj (PR-1) Department directs that two-thirds of the pooled amount, Rs.577,35,75,997, be released to rural local bodies.
Key distribution provisions are:
- Village Panchayats and Panchayat Unions receive the amount in the ratio of 67:33.
- District Panchayats do not receive a share.
- Each Village Panchayat's or Panchayat Union's entitlement is based on its rural population according to the 2011 Census.
- The Director of Rural Development and Panchayat Raj must release these funds quarterly.
Rural scheme funding
The remaining one-third, Rs.288,67,87,999, is retained for the scheme component. From this amount:
- Rs.144,33,94,000 is earmarked for the Tamil Nadu Village Habitation Improvement Scheme (THAI).
- The balance is retained for the Fund for Priority Schemes in Rural Areas and is to be credited on a half-yearly basis.
- The Director of Rural Development and Panchayat Raj is authorised to draw, disburse and use the sanctioned amount for specific rural development schemes.
The detailed allocation table records the remaining amount for regular use under the Fund for Priority Schemes in Rural Areas as Rs.144,33,93,999.
Relevance to property owners and buyers
Government Order (Ms) Number 154 concerns how government revenue already collected through the Surcharge on Stamp Duty and Entertainment Tax is pooled and distributed. It does not state a new stamp duty surcharge rate or create a separate payment requirement for an individual property transaction.
The order restricts direct adjustment of Entertainment Tax and Surcharge on Stamp Duty from departmental revenue receipt heads to urban local bodies. Rural local body entitlements are instead handled through the State-level pooled system.
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Common questions
Does Government Order (Ms) Number 154 increase stamp duty for property buyers?
The order does not state a new stamp duty or surcharge rate. It deals with pooling and distributing revenue from the Surcharge on Stamp Duty and Entertainment Tax.
Which rural local bodies receive the pooled assigned revenue?
Village Panchayats and Panchayat Unions receive the two-thirds local body share in the ratio of 67:33. District Panchayats do not receive a share.
How is each rural local body's share calculated?
The share allocated to each tier is distributed among the relevant local bodies in proportion to their rural population under the 2011 Census.
How much is set aside for the Tamil Nadu Village Habitation Improvement Scheme?
Rs.144,33,94,000 is earmarked for the Tamil Nadu Village Habitation Improvement Scheme (THAI). The Director of Rural Development and Panchayat Raj is authorised to allocate and use it according to the scheme guidelines.
