Municipal valuation

Municipal Valuation should be determied by considering the Fair Rent that would be expected from properties surrounding the property where you reside.  The REnt however shud not exceed the Standard Retn as per the Rent Control Act.

Municipal or local authorities charge house tax on properties situated in the urban areas. For this purpose, they have to determine the income earning capacity of the property so as to calculate the amount of house tax to be paid by the owner of the property. But this valuation cannot be treated as a conclusive evidence of the rental value of the property, although such valuation is given due consideration by the Assessing Officer.

Hope you got it.....:)