Panchayat and the balance to the credit of the Fund shall be kept in such custody as may be prescribed.

Taxation by Gram Panchayat : —(1) Subject to such rules as may be made in this behalf and the maximum rates specified by the Government, a Gram Panchayat may impose yearly —

1. (a) Tax on occupants of holdings;
2. (b) On professions, trades, callings and employments carried on or held within the local limits of its jurisdiction a tax on the basis of total annual income accrued from such profession, trades, callings and employments.

1. (2) Subject to such maximum rates as the Government may prescribe, a Gram Panchayat may realize the following fees and rates, namely –
   • (a) Fees on the registration of vehicles which are not registered under any other law in force at that time;
   • (b) Fee for providing sanitary arrangements at such places of pilgrimage, haats, melas and public use within its jurisdiction as may be specified by the Government by notification;
   • (c) Water Rate, where arrangement for the supply of water for drinking, irrigation or any other purpose is made by or on behalf of the Gram Panchayat within its jurisdiction;
   • (d) Lighting Fee, where arrangement for lighting of public streets and places is made by or on behalf of the Gram Panchayat within its jurisdiction;
   • (e) Conservancy Rate, where arrangement for cleaning private latrines, urinals and cesspools is made by or on behalf of the Gram Panchayat within its jurisdiction.