Mrs. T. Kalaiselvi*
* Ph. D. Research Scholar, Manonmaniam Sundaranar University, Tirunelveli.
Abstract
Villages are the backbone of our country. In India, majority of the population live in villages. The prosperity of the country basically depends upon the economic development of the villages. It is for this reason Gandhiji encouraged the “Grama Swaraj” and village development. Therefore, after independence, local bodies were given importance under the Panchayat Acts. The development activities of the Panchayats wholly depend upon the financial resources from the Panchayats. In this present study there is an attempt is being taken to brief the revenue administration including the income and expenditure of village Panchayats in India.
Introduction
Villages are the backbone of our country. In India, majority of the population live in villages. The prosperity of the country basically depends upon the economic development of the villages. It is for this reason Gandhiji encouraged the “Grama Swaraj” and village development. Therefore, after independence, local bodies were given importance under the Panchayat Acts. The development activities of the Panchayats wholly depend upon the financial resources from the Panchayats. The funds to the Panchayats mainly originated from various sources like house tax, vehicle tax, land tax, business tax, transfer of property, local cess and entertainment tax. Further, every Panchayat can get revenue from Panchayat general fund, restricted fund and the scheme funds.1
1. House Tax
House tax is the major source of income to the Panchayats. In case of new houses, the owner should pay house tax within 60 days of its construction. It is a rule to collect house tax from all the houses in the Panchayat. In every five year revaluation has to be done and tax collected in respect of its value. The village administrator determines the taxable amount for houses.2 House taxes are collected on the basis of rental, area and the value of house.
Table – 1
Yearly tax
There are some exceptions to this taxation. They are
1. Tax to be collected in respective proportion if a house is partly concrete, tiled and thatched.
2. The house built in an area of 18.58 square meter of partly concreted or thatched or tiled shall pay an aggregate amount of Rs.40.
3. Additional tax is levied on the nature of building.
4. Additional tax shall be levied to houses built partly for living and business purposes.3
2. Library Tax
According to the Tamilnadu Public Libraries Act, Section 12, 1948, 10% of the house Tax is collected as tax.
3. Professional Tax
Tax collected on the income from business, commerce and profession is collectively called as business tax. Manufacturers, traders within the limits of Panchayat are levied this tax half yearly.4
1. The tax collectors have to collect tax every half yearly form officials and people working in Central and State Government, private companies, government based organizations and remit it to the Panchayat. This tax is collected on all August and January months of each year and remitted to the Panchayat on 15th of every September and February.
Table – 2
Professional Tax
2. Income is taxed on amount above Rs.21,001 for business people and professional as per the norms of the Panchayat.
3. According to the 1992 Business and Profession Act, business concerns have to fill form 1 and the supportive documents to the respective authorities. Based upon this documents tax is fixed and collected.
4. Tax is collected from people working in Transport Corporation and Electricity Board.
5. Tax is collected from Life Insurance Offices lying under the Panchayat limits.5
6. Tax is also collected from offices such as the Provident Fund Offices lying under the Panchayat limits.
7. Tax would be collected for units belonging to electricity board lying in the Panchayat limits.6
8. From various banks under its limit.
9. From Food Corporation of India where it uses machinery to dry grains.7
4. Advertisement Tax
Advertisement is the medium to reach the common public. Tax levied on advertisement is called as Advertisement tax. Advertisement made on screens, boards, walls, private buildings, banners and government buildings are levied tax. Advertisement made through TV, Radio and paper does not come under its purview.8 Tax has to be paid every year by the advertisement agents to the Panchayat.
5. Duty on Transfer of Property (Stamp Paper Duty)
The duty on transfer of property shall be levied in the form of a surcharge on the duty imposed by the Indian Stamp Act, 1899, related to immovable property situated in the area under the jurisdiction of a village Panchayat, not exceeding five per centum on the sale of immovable property. Duty collected by the registration department is received by the District Collector and is credited to the village Panchayat account every quarter. The duty collected in such manner is distributed in the ration of 97% to village Panchayats and 3% to stamp registration department.9
6. Vehicle Tax
The vehicle tax is subject to rules as may be prescribed including rules relating to exemptions and restrictions levied every half-year on all vehicles kept or used within the Panchayat limits at such rates as may be fixed by the village Panchayat not less than the minimum rates and not exceeding the maximum rates prescribed.10 The village Panchayat has the full right to determine the tax for vehicles.
7. Land Tax
In such cases where there is an insufficient fund for Panchayat development activities, the Panchayat has powers to levy tax on agricultural lands for a certain period on certain percentage.11 Tax on agricultural land is collected for some particular reason for the development activities of village Panchayat.12 The proportion of tax collection is based on the area, classification and revenue from the agricultural land. In such cases, special meeting is organized and the resolutions recorded are sent to the inspector.13
8. Income for Panchayat property
Income for Panchayat comes from Village Panchayat markets, bus stations, vehicle parking, peramboke lands and other sources within the village Panchayat’s jurisdiction.
9. Tax on Cable TV Connection
Tax is collected for every cable connection at a rate not less than Rs.10 for each connection. A deposit of Rs.10,000 is also collected from these operators.14
Tax Exemptions
Tax is exempted for the following cases15
1. Temples, churches and mosques.
2. To choultries.
3. Students hostel, libraries, non-business motive educational institutions and offices.
4. Structures and monuments coming under Monuments Protections Act 1904.
5. Charitable hospitals of hospitals collecting fees for charitable activities.
6. Buildings belonging to Panchayat.
7. Forest buildings and offices within the Panchayat limits.
8. Light Houses.
9. Dispensaries run by Railway Department.
10. Cattle Yards.
11. Storm broadcasting centres.
Tax can be collected only by issuing receipt. If any individual believes he is over taxed he can write a petition to the President. The President or the administrative officer is responsible to analyze the case and sent a final order in this regard. In case if the petitioner is not satisfied with final verdict, he can apply to the auditor for further clarifications. Auditor’s verdict is final in the respective case.
The petitioner has to pay the tax within 30 days from the day when he receives the demand notice. He can apply top authorities with this tax receipt.16
Procedures in Tax Collection
Tax can be collected immediately after the price fixed. The receipts issued for the amount should contain the specimen signature of the President. The tax collected in such manner should be deposited into village Panchayats account on the same or the very next day. Surplus amount and delayed deposit are considered as temporary fraudulent practice.
Panchayat Expenditures
Expenditures are incurred for the various developmental activities carried by the village Panchayats.17 They are:
a. For maintaining Panchayats ponds and lakes.
b. For maintaining Panchayats buildings.
c. For maintaining roads and culverts.
d. For maintaining the Panchayats burial grounds.
e. For constructing new buildings.
f. For constructing new roads and maintaining them.
g. For building new culverts.
h. To increase the water tape connections.
References
1. Kagandhep Singh Bady, Panchayat Raj, Nagercoil, 2002, p.8.
2. R. Rukmani, Tamilnadu Panchayat Forum, Chennai, 1988, p.107.
3. Kagandhep Singh Bady, Ibid, p.18.
4. R. Rukmani, Ibid, p.108.
5. G. O. No. (class) 933, Local Department, 28-5-1960.
6. G. O. No. 226, Rural Development Department, 16-10-1962.
7. G. O. No.30029/c2/73-11, Rural Development and Local Department, 8-7-1994.
8. Kagandhep Singh Bady, Ibid, p.23.
9. Kanyakumari District, President Guide, 11-3-2002, p.25.
10. R. Rukmani, Ibid, p.108.
11. Kagandhep Singh Bady, Ibid, p.24.
12. R. Rukmani, Ibid, p.24.
13. Kagandhep Singh Bady Ibid, p.24.
14. G. O. No. 267, Rural Development Department, 29-9-2000.
15. Ibid.
16. Kagandhep Singh Bady, Ibid, p.19.
17. Ibid, p.32.