Amendment status not verified — confirm the current text below against the official source.
(1) All moneys received by a Municipality under this Act or the rules made there under or any other law for the time being in force, shall constitute a fund which shall be called the Municipal Fund and shall be utilised and disposed of subject to the provisions of this Act or any other laws. (2) The items of income to be credited to the Municipal Fund consist of the following, namely:- (a) Taxes, duties cess and surcharge levied under this Act or any other law, the rent from properties, fees from licences and permissions and its income from other miscellaneous items; (b) Share of the taxes levied by the Government and transferred to the Municipality and the grants released to the Municipality by the Government; (c) Grants released by the Government for the implementation of schemes, projects and plans formulated by the Municipality; (d) Grants released by the Government for the implementation of the schemes, projects and plans assigned or entrusted to the Municipality under this Act; and (e) Money raised through donations and contributions from the public and non-governmental agencies. (3) All fees for licences and permissions received by the Municipality under this Act or any other law shall be accounted separately and shall be utilised for the purpose for which such fees are levied. (4) Grants released by the Government to the Municipality for the implementation of the schemes, projects and plans shall be utilised only for that purpose for which such grants are released. (5) The share of taxes levied by the Government and transferred to the Municipality and the grants released to the Municipality shall be fixed by the Government with due regard to the recommendations of the Finance Commission and the needs of development and the cost of the Municipal administration and services: Provided that any sum due from a Municipality to the Government or any fund established or operated or administered under any rules made under. this Act or any fund borrowed from any public sector undertaking or any agency on Government guarantee may be adjusted by the Government from any grant or sum due to the Council then and thereafter. (6) No expense, financial assistance or grant for a purpose not directly concerned with the function of the Municipality specified in this Act or rules made thereunder or any other law shall be made by a Municipality in excess of the annual limit that may be specified by the Government. (7) All amounts accounted to the Municipal fund and of its release under this Act, shall be in full rupee. Explanation: - For this purpose fraction of a rupee shall be rounded to the next higher rupee.] Section 283 substituted by Act 14 of 1999, w.e.f. 24-3-1999. Prior to the substituion Section 283 read as under: "283. Municipal fund.- (1) All moneys received by a Municipality, except those collected as fees for licences and permissions under this Act or any other law for the time being in force, shall constitute a fund which shall be called the municipal fund and shall be applied and disposed of, subject to the provisions of this Act and such other law. (2) All fees for licences and permissions received by a Municipality under this Act or any other law for the time being in force shall be kept separate from the Municipal fund constituted under sub-section (1)and shall be utilised for the purpose for which such fees are levied. (3) The Government may contribute to the Municipal fund by way of a grant such sums as may be fixed by the Government with due regard to the recommendation of the Finance Commission and to the needs of development and the cost of municipal administration and services as the Government may deem fit. Provided that any sum due from a Municipality to the Government or any fund established, operated and administered under any rules made under this Act may be adjusted from any grant or sum due to the Municipality from the Goverment then and thereafter to be due to the Council."