Method of assessment of property

(1) Every building shall be assessed together with its site and other adjacent premises occupied as an appurtenance thereto unless the owner of the building is a different person from the owner of such site or premises.

1. (2) The annual value of land and buildings shall be deemed to be the gross annual rent at which they may reasonably be expected to let from month to month or from year to year less a deduction, in the case of buildings, of **[fifteen per cent] of that portion of such annual rent which is attributable to the buildings alone, apart from their sites and adjacent lands occupied as an appurtenance thereto and the said deduction shall be in lieu of all allowances for repairs or on any other account whatever: Provided that.(a) in the case of.-
   • (i) any State Government, or
   • (ii) any building of a class not ordinarily let, the gross annual rent of which cannot, in the opinion of the Commissioner, be estimated, the annual value of the premises shall be deemed to be six per centum of the total of the estimated value of the land and the estimated present cost of erecting the building after deducting for depreciation a reasonable amount which shall in no case be less than ten per centum of such cost;
     • • The section came into force on the 1st day of August 1976 vide Extraordinary Gazette No.342, dated 29th July, 1976. ** These terms have come into force with effect from 17.11.2005 vide Act No.6 of 2005 published in the Extraordinary Gazette Part II No.69 dated 18.11.2005.
   • (b) machinery shall be excluded from valuations under this section; and
   • (c) in the case of the buildings and lands referred to in clauses (a) to (g) and (i) of sub-section (1) of section 124, if rent is covered for such buildings and lands by the owner thereof, their annual value shall be deemed to be the amount of rent actually payable to the owner in respect thereof for twelve months, less a deduction, in the case of buildings only, of ten per centum of such amount in lieu of allowance for repairs or any other account whatever.
2. (3) The Government shall have power to make rules regarding the manner in which, the person or persons by whom and the intervals at which, the value of the land, the present cost of erecting the building and the amount to be deducted for depreciation, shall be estimated or revised, in any cases or class of cases to which clause (a) of the proviso to sub-section (2) applies.