Chapter VIII, Section 116- Determination of rateable value of lands and buildings assessable to property taxes

Rateable value of any land or building- The annual rent at which a land or building might reasonably be expected to let (or lease)  from year to year.

  1. When the rateable value of a property is equal to ten percent of its annual rent, the rateable value is in lieu of all the allowances for costs of repairs and insurance, and other expenses that are necessary to maintain the land or building in a condition which commands that rent.
  2. The rateable value is also held to be in lieu of the water tax or the scavenging tax or both. This is if the rent is inclusive of either or both of these taxes. Provided further that in respect of any land or building the standard rent of which has been fixed under the Delhi and Ajmer Rent Control Act, 1952 (38 of 1952), the rateable value of it shall not exceed the annual amount of the standard rent so fixed.
  3. The rateable value of any land which is not built upon but has the potential to be built upon shall be fixed at five per cent of the estimated capital value of that land.
  4. In those cases where all the plant and machinery on any land or in a building, they shall be deemed to form part of that land or building. It shall also be deemed to be a part of that property if the plant or machinery belongs to any of the classes specified by public notice by the Commissioner.