Chapter IV Chapter IV

Incorporation of Panchayats and its property

Incorporation of Panchayats and its property.--(1) Every Panchayat shall be a body corporate by the name "the Panchayat of " and shall have perpetual succession and a common seal and may sue and be sued in its corporate name and shall be competent to acquire and hold property, both movable and immovable, whether within or without the limits of the area over which it has authority, to lease, sell or otherwise transfer movable or immovable property which may become vested in or be acquired by it and to contract and do all other things necessary for the purposes of this Act.

1. (2) The following shall constitute the property of a Panchayat :--
   • (a) public village roads within the Panchayat area other than those under the control of any Department of the Government ;
   • (b) property movable and immovable which has been transferred to a Panchayat by the Government, any public body or an individual ;
   • (c) buildings, slaughter-houses, manure and night soil depots, structures, machinery and water reservoirs built by a Panchayat from its own funds or from contribution by the Government, any public body or an individual ;
   • (d) all sewage, filth, bones, village cleanings, dead bodies of animals and other matter collected by the Panchayat under this Act ;
   • (e) trees (excluding royal trees) and grass growing on property belonging to the Panchayat, fruit and product thereof and windfalls thereon ;
   • (f) drains, springs, streams, Nallahs and other water courses in the Panchayat area not being the property of any person or of any public body or Government and not vesting in any person as the property of the Panchayat ;
   • (g) all public lamps or lamp posts and all apparatus connected therewith or appertaining thereto ;
   • (h) all other property which may be declared by the Government to be the property of the Panchayat.
2. (3) All property vested in the Panchayat shall vest in the Panchayat or joint committee.

Vesting of common property or income in Panchayat

Limitation of power to accepting donations and trusts

Transfer to Panchayats of undemarcated forest and other institutions or works

Disposal of claims

Panchayat Fund--Every Panchayat shall prepare and maintain Panchayat Fund which shall be administered by such authority as may be prescribed by the Government and shall be utilised for the expenditure and charges made and incurred in carrying out the purposes of this Act.

Income of Panchayat Fund--The following moneys and receipts shall be credited to the Panchayat Fund :--

1. (1) fees levied for the institution of suits and cases under section 92 ;
2. (2) fines and compensation paid to the Panchayat under this Act ;
3. (3) receipts on account of taxes, tolls and fees levied under this Act ;
4. (4) sums contributed by Government, grants-in-aid or donations of money by private persons for public utility works ;
5. (5) sanitation cess levied on the revenue paying land situated within the Panchayat area ;
6. (6) commission on collection of land revenue, if so ordered by the Government ;
7. (7) all sums ordered by a Court to be placed to the credit of the Fund ;
8. (8) the sale proceeds, except in so far as any private person is entitled to the whole or a portion thereof, of all dust, dirt, dung or refuse (including the dead bodies of animals) collected by the Panchayat servants ;
9. (9) such portion of the rent or other proceeds of nazool property or the rent of camping and other areas as the Government may deem to be paid to the credit of the Panchayat Fund ;
10. (10) all sums received by way of loan, subvention of gift ;
11. (11) income delivered from village forests, nurseries or any other property maintained by the Panchayat ;
12. (12) income from cattle pounds ;
13. (13) income from sand, bajri and stone from nallahs and quarries ;
14. (14) adda fee (if vehicle stand is maintained by a Panchayat) ; and
15. (15) all other incomes of the Panchayat and such other sums as may be assigned to the Panchayat by any general or special order of the Government.

Power to borrow--With the sanction of the Government and subject to such terms as may be prescribed, a Panchayat may borrow money from the Government, a Co-operative Bank or any other financial institution for the furtherance of the purposes of this Act.

Imposition of taxes and fees.--Subject to rules as may be made by the Government in this behalf, a Panchayat may impose one or more of the under-mentioned taxes and fees :--

1. (1) a fee subject to a maximum of rupees fifty per annum for carrying on any trade, calling or profession within the Panchayat area; Provided that in the case of a person temporarily stationed in the area of the Panchayat, a fee not exceeding one rupee per diem may be levied:
2. (2) a tax payable by the owner thereof on vehicles other than mechanically-propelled vehicles kept and plied for hire at the rate--
   • (i) in the case of animals, not exceeding three rupees per animal per annum;
   • (ii) in the case of vehicles, not exceeding six rupees per vehicle per annum;
   • (iii) in the case of tractors, not exceeding rupees ten per tractor per annum;
3. (3) fees on persons, not being persons assessed to tax under clause (1), exposing goods and animals for sale in markets or on sites under the control of the Panchayat concerned;
4. (4) fees for the use of slaughter houses and camping grounds;
5. (5) a water rate where water is supplied by the Panchayat;
6. (6) a tax not exceeding such rates as may be prescribed on building owned by persons whose annual income exceeds six hundred rupees;
7. (7) a fee for the temporary occupation of village sites, roads and other similar public places or parts thereof in the Panchayat area;
8. (8) a tax on tongas let out on hire;
9. (10) a lighting rate;
10. (11) a fee for grazing of cattle in grazing lands vesting in a Panchayat;
11. (12) dharat or terminal tax;
12. (13) pilgrim tax;
13. (14) a tax on Gharats, Rice, Husking Mills, Brick Kilns and Oil Mills;
14. (15) a tax for arranging the supply of drinking water within the Panchayat areas;
15. (16) a fee on cattle pounds;
16. (17) a fee on extraction of sand, bajri and stone from nallahs and quarries;
17. (18) a fee on Tonga/Bus stands; provided that such stands are maintained by the Panchayat;
18. (19) a tax on hawkers and Pheriwalas; and
19. (20) such other tax or fee as may be approved by the Government;

Procedure in imposing taxes Procedure in imposing taxes.--(1) A Panchayat may at a special meeting pass a resolution proposing the imposition of any tax or fee under Section 54.

1. (2) When such a resolution has been passed, the Panchayat shall publish a notice in the Gazette and display it in a conspicuous place or places in the Panchayat area defining the class of person or description of property proposed to be taxed, the amount or rate of the tax or fee to be imposed and the system of assessment to be adopted.
2. (3) Any inhabitant objecting to the proposed tax or fee may, within thirty days from the publication of the said notice, submit his objection in writing to the Panchayat and the Panchayat shall at a special meeting take his objection into consideration.
3. (4) If the Panchayat decides to amend its proposals or any of them, it shall publish its amended proposals together with a notice indicating that they are in modification of those previously published for objections.
4. (5) If no objection to the proposed tax is received within the said period of thirty days or all such objections as received as aforesaid are deemed insufficient, the Panchayat shall submit its proposals for the imposition of taxes or fees as the case may be and on the approval of such sanctioned taxes and fees to the prescribed authority publish the same in the Government Gazette and shall display it in conspicuous places in the Panchayat area specifying the date from which the taxes and fees so imposed shall come into force.
5. (7) A notification in the Gazette of the imposition of tax under this Act shall be conclusive evidence that the tax has been imposed in accordance with the provisions of this Act.

Power of the Government to increase taxation of Panchayat.--If in the opinion of the Government the income of a Panchayat is not sufficient to meet the expenditure and no tax is levied or enhanced by the Panchayat under Section 54, the Government may direct the Panchayat to increase its taxation in such manner as the Government may deem necessary.

A. Regularisation of Dharat Tax.--Notwithstanding anything contained in this Act, the Dharat Tax already levied by the Panchayats of Chenani and Kud in District Udhampur at Tehsil Udhampur, respectively, shall be deemed to have been levied under the provisions of this Act.

Power of entry for the purpose of survey.--A Panchayat may authorise any person--

1. (a) after giving twenty-four hours notice to the occupier, or to the owner of any building or land, at any time between sunrise and sunset, to enter, inspect and measure any building or land for inspection;
2. (b) to enter and inspect any stable, coach house or other place or building.

Appeal against levy of tax, rate or fee.--(1) An appeal against the levy of a tax, rate or fee by the Panchayat shall lie to the prescribed authority.

Recovery of taxes and other dues as arrears of land revenue.--Subject to such directions as may be made by the Government in this behalf, all the taxes or fees levied under Sections 54 and 55 by the Panchayat and the moneys recoverable under section 143 shall be recoverable as if they were arrears of land revenue.

Revision of assessment.--Any person dissatisfied with the assessment made under this Chapter may, within such time as may be prescribed, apply to the prescribed authority in writing for a revision of the assessment and the authority may amend or confirm the same.

Realisation of taxes, custody of and accounts.--The Panchayat shall, as prescribed, arrange for the realisation of Panchayat taxes and dues, custody of its funds and maintenance of accounts.

Audit of Panchayat Fund.--The accounts of every Panchayat shall be audited every year in the manner prescribed.

Annual Budget.--(1) Every Panchayat shall prepare and lay before a meeting of voters budget estimates of its income and expenditure for the next year. The plans for the next year shall be forwarded to the prescribed authority within three days after its sanction under sub-section (1).

Exemption from taxation Exemption from taxation.--Subject to such rules as may be made by the Government, the Panchayat may exempt any person or class of persons from the payment of any tax or fee.