Principles for determination of the net average annual income

1. The net average annual income shall be one-fifth of the amount arrived at by deducting municipal taxes, revenue charges and cost of repairs for the period of five consecutive years referred to in sub-section (1) of Section 16 from the gross rent actually derived by the owner during the said period of five years from the land acquired including any hut or building, if any, thereon if it is actually rented. 2. The gross rent shall be determined by the competent authority by local enquiry and, if necessary, by obtaining certified copies of extract from the property tax assessment books of the Municipal or other local authority concerned showing the rental values of any such lands, huts or buildings. The cost of repairs to the huts and buildings on the land shall be calculated at the rate of one month\'s rent per year in each case. 3. Where there are trees on the land acquired, the competent authority shall take into account the income, if any, actually derived by the owner from such trees during the said period of five years. 4. If the land or the huts or buildings thereon, remained unoccupied or the owner has not been in receipt of any rent for the occupation of such land, huts or buildings during, the whole or any part of the said period of five years, the gross rent shall be taken to be the income which the owner would in fact have derived if the land, hut or building has been leased out or given for rent during the relevant period, for this purpose the income actually derived from similar lands, huts or buildings in the vicinity shall be taken into account.