Amendment status not verified — confirm the current text below against the official source.
(1) Any local authority may with the previous sanction of the Government, and shall, if so directed by them, levy within its area or any part thereof, any tax which may be necessary for providing water-supply in such area or part. (2) Any tax levied under sub-section (1) may be a new tax levied on such basis assessed and realised in such manner as may be sanctioned or directed by the Government, or may be a tax or additional tax levied under any head of taxation specified in any law for the time being in force governing the local authority concerned in which case all the provisions of such law relating to the incidence, assessment or realisation of a tax under such head or in any manner connected therewith shall be applicable to the tax or additional tax, with such modifications and restrictions, if any, as may be prescribed. (3)(a) The rates at which any tax may be levied under this section shall be determined by the local authority with the previous sanction of the Government in case the tax is levied by the local authority of its own motion, and by the Government in case the tax is levied at their direction. (b) The local authority may with the previous sanction of the Government and shall, if so directed by them, alter the rates at which any such tax is to be levied. (4)(a) Every local authority levying a tax under this section shall earmark the net revenue therefrom for expenditure on the execution, maintenance and improvement of works of water-supply in the local area or part thereof within which it is levied. (b) Such revenue shall be expended in accordance with such orders as may be issued by the Government in this behalf. (5) Nothing contained in this section shall be deemed to affect the power of the Corporation of Madras to levy a water and drainage tax under Section 99(1)(b) of the Madras City Municipal Act, 1919, or of any municipality governed by the Madras District Municipalities Act, 1920, to levy a water and drainage tax under Section 81(1)(b) of that Act [or of any local board governed by the Madras Local Boards Act, 1920, to levy an additional house-tax under Rule 91 of Schedule IV to that Act for any purpose specified in that rule.] Added by Section 5 of the Madras Public Health (Amendment) Act, 1941 (Madras Act XIX of 1941), re-enacted permanently by Section 2(1) of, and the First Schedule to, the Madras Re-enacting Act, 1949 (Madras Act X of 1949).