Levy of tax

Levy of tax.

1. (1) Subject to the provisions of this Act, the tax shall be payable by an owner of property of aggregate annual value of properties in rating area at such rate not exceeding 25 per centum of the annual value as the Government may, by notification in the Government Gazette, from time to time, direct in respect of a rating area. If a unit is owned by two or more persons as joint owners, tax shall be payable in respect of such Property as a unit and they shall be jointly and severally liable for the payment of tax and any other sum: Provided that where the tax calculated on the difference between the said annual value and the annual value exceeds the exemption limit, as referred to in clause (c) of sub-section (1), or as fixed by the Government under sub-section (2), of section 4, the tax leviable shall be equal to the said difference: Provided further that the Government may fix graduated rates of tax on different slabs of annual value of such lands and buildings subject to maximum specified in this section.
2. (2) [Omitted].
3. (3) If the property, in respect of which tax is payable is transferred to any other person, whether by sale, gift, exchange, mortgage, inheritance or otherwise, the transferee shall be liable to pay tax or any other sum payable under this Act in respect of the property so transferred for the period prior to the date of transfer and the notice of demand, if any, issued to the transferer shall be deemed to have been issued to, transferee; Provided that a duplicate copy of such notice of demand shall be served on the transferee. Explanation.--For the removal of doubt it is hereby clarified that if a property is owned by two or more person in definite and specific portions as co-owners, the tax shall be payable by each co-owner in respect of the annual value of the portion owned by him.