PREMIA AND OTHER LEVIESCentral
Section 62 of The Ajmer Tenancy and Land Records Act, 1950
Lag, neg and cess.
- (1)Notwithstanding any custom or contract to the contrary, no lag, or neg, by whatever name called or known, shall, in addition to the rent of the holding, be levied on, or recovered from, a tenant: Provided that this prohibition shall not apply to a village development cess levied under sub-section (2).
- (2)The Chief Commissioner may, with the previous approval of the Central Government, declare that the tenants of any village shall be liable to pay a village development cess, not exceeding two and a half per cent, of the rental to be applied for such purposes, and to be collected and disbursed in such manner, as may be prescribed in this behalf.
- (3)In case of doubt, the Chief Commissioner may determine whether any levy is a levy prohibited by sub-section (1).
Summary
- Landlords are strictly forbidden from charging extra fees in cash, known as "lag," or gifts in kind, known as "neg".
- These extra levies are prohibited even if there is a local custom or an old contract that says they should be paid.
- The only exception is a village development cess, which is a small tax used for community projects.
- This development tax cannot exceed two and a half percent of the total rent paid by the tenant.
- For this tax to be legal, the Chief Commissioner must declare it, and the Central Government must approve it.
- The Chief Commissioner has the authority to decide if a specific fee being charged counts as one of the forbidden levies.
Practical examples
1A landlord asks for three bags of grain every year as a "gift" for a family wedding. Under the 1950 Act, this is an illegal "neg" and cannot be collected even if it was a tradition.
2The government decides the village needs a new school. They get approval to collect a development cess. If the total rent is 100 rupees, the maximum they can charge for this tax is 2 rupees and 8 annas.
FAQ
1. What is the maximum village development cess allowed under the 1950 Act?
According to Section 62, a village development cess cannot exceed two and a half percent of the rental.
2. Who must approve a village development cess in Ajmer?
Under Section 62, the Chief Commissioner must declare the cess, but they must first get the approval of the Central Government.
Test yourself
Q1.Under Section 62 of The Ajmer Tenancy and Land Records Act, 1950, what is the maximum percentage allowed for a village development cess?
Q2.According to Section 62 of the Ajmer land law, which official has the power to decide if a levy is prohibited?
Q3.Under Section 62 of the 1950 Act, why might a contract allowing "lag" or "neg" be ignored?
Q4.Under Section 62 of the Ajmer Tenancy and Land Records Act, 1950, which of the following is an example of an illegal "neg"?