Arani Town - Municipal
Arani Town - Municipal
Arani Town - Municipal
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Chapter - 9 Final Report: <strong>Arani</strong> <strong>Municipal</strong>ity<br />
9 MUNIICIIPAL FIINANCE<br />
9.1 OVERVIEW<br />
<strong>Arani</strong> <strong>Municipal</strong>ity maintains a municipal fund for managing the finances of the<br />
<strong>Municipal</strong>ity. The accounts of the municipal fund were maintained on cash based<br />
single entry system till the year 1999-2000. From 1.4.2000 onwards, accrual based<br />
double entry book keeping system was implemented. The <strong>Municipal</strong>ity maintains<br />
accounts separately for General Fund, Water Supply and Sewerage Fund and<br />
Education Fund.<br />
This Section contains a description of the municipal finances, the sources and uses of<br />
funds, and an assessment of municipal finances based on important financial<br />
indicators.<br />
9.2 GENERAL DETAILS<br />
<strong>Arani</strong> is located at Tiruvannamalai District and the total population as per 2001<br />
census is 60815 Nos. Out of the same the total urban poor is 19399 Nos., comprising<br />
31.89% of the total population. The total number of slums is 9 Nos. with total slum<br />
population of 8939 Nos, which aggregates to 14.70% of total population.<br />
It is a Grade I municipality.<br />
9.3 RECEIPTS<br />
Receipts under the Revenue Account include taxes and fees, grants, water &<br />
sewerage charges, income from properties, service charges & fees and other<br />
income.<br />
9.3.1 Property Tax<br />
Property Tax is the single largest tax revenue source and accounts for around 28% of<br />
the total revenue. This tax is levied on residential, commercial, industrial and vacant<br />
lands. The property tax is levied on the basis of Annual Rental Value of the property.<br />
The property tax is levied on the annual value of the property, which is determined<br />
on the basis of gross rent at which the property can be reasonably expected to be<br />
let out.<br />
The <strong>Municipal</strong>ity currently charges property tax @ 17.5% per annum on the basis of<br />
Annual Rental Value. The components of property tax are as below :<br />
Table 9-1: Property Tax Components<br />
S.No Particulars % (Per Annum)<br />
1 General 1.5%<br />
2 Scavenging 3.0%<br />
. - 53 -<br />
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