Section 65: Taxation of Union properties

(1) Notwithstanding anything contained in the foregoing provisions of this Chapter, lands and buildings being properties of the Union shall be exempt from the property tax specified in section 61:

Provided that nothing in this sub-section shall prevent the Council from levying property tax on such lands and buildings to which immediately before the 26th January, 1950, they were liable or treated as liable, so long as that tax continues to be levied by the Council on other lands and buildings:

¹[Provided further that the Council may levy and collect service charges from properties of the Union of India at the rate of seventy-five per cent. of property tax leviable, for rendering municipal services.]

(2) Where the possession of any land or building, being property of the Union, has been delivered in pursuance of section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (44 of 1954) to a displaced person, or any association of displaced persons, whether incorporated or not, or to any other person [hereafter in this sub-section and the proviso to sub-section (1) of section 66 referred to as the transferee], the property tax specified in section 61 shall be leviable and shall be deemed to have been leviable in respect of such land or building with effect from the 7th day of April, 1958 or the date on which possession thereof has been delivered to the transferee, whichever is later, and such property tax shall, notwithstanding anything contained in any other provision of this Act, be recoverable with effect from that day or date, as the case may be.

²[(3) Property owned by a Government company incorporated under the Companies Act, 2013 (18 of 2013), or a society formed under the Societies Registration Act, 1860 (21 of 1860), functioning under the administrative control of the Central Government or any State Government, or any Union territory or a statutory or autonomous corporation constituted by an Act of Parliament or by an Act of any State Legislature, which has a corporate personality of its own, shall not be deemed to be the property of the Union.]