Regional Training Institute, Ranchi

1. Regional Training Institute, Ranchi Structured Training Courseware on State Receipt Audit Audit of Land Revenue

2. Session Objectives At the end of this session, the participants will be able to • Explain the nature and types of land revenue • Understand the assessment and collection mechanism • List important Registers and Records and • Detail audit checks relating to land revenue RTI, Ranchi

3. Introduction • Land revenue includes • Rent payable to the State Government by owners of land • Road cess • Education cess • Health cess • Agriculture development cess These cesses are payable even in respect of lands exempt from land rent RTI, Ranchi

4. History of Land Revenue • Oldest source of revenue to the State • Numerous changes over the centuries • Streamlined during British period • Set up Board of Revenue • Tenancy Acts passed RTI, Ranchi

5. History of Land Revenue (contd.) • Agrarian reforms initiated after independence • Intermediaries abolished • Assessment and collection of land revenue directly under State Governments RTI, Ranchi

6. Organizational Set up RTI, Ranchi

7. Nature of land Revenue • Land Revenue assessed w.r.t. use of land for agricultural purposes • Assessment based on, • Configuration of land • Climate • Rainfall • Yield of land RTI, Ranchi

8. Nature of Land Revenue (contd.) • Rates of land revenue fixed at intervals of 30-40 years • Additions to land revenue rates made in the form of, • Cess, surcharge etc. • Agricultural land permitted for use for other purposes on payment of conversion fee RTI, Ranchi

9. Types of land Revenue • Land revenue • Conversion fee/fine • Land revenue and fine for unauthorised occupation of land • Local cess • Health and education cess • Price for land granted RTI, Ranchi

10. Procedure for Assessment Survey and Settlement Department • Prepares Index Register of land for every village including, • Survey number • Classification of land • Approved assessment rates RTI, Ranchi

11. Procedure for Assessment (contd.) Tehsil Office • Prepares Demand, Collection and Balance Register from Index Register and the fixed land revenue roll • Prepared in the same year as Index Register RTI, Ranchi

12. Procedure for Collection Tehsil Office • Demand, Collection and Balance Register shows • Arrears due • Fresh demand • Collection • Balance in respect of each of the holdings • Village Patwari/Karamchari collects revenue based on this RTI, Ranchi

13. Procedure for Recovery of Arrears • By serving a write-off demand or a citation to appear on any defaulter • By arresting and detaining persons • By attaching and selling moveable property of defaulter including the produce and immovable property RTI, Ranchi

14. Procedure for Recovery of Arrears (contd.) • By attaching the land holding for which arrears are due • By leasing or selling the land holding for which arrears are due • By appointing receiver for any property – moveable/immovable of the defaulter RTI, Ranchi

15. Registers and Records • Index register • Demand, Collection and Balance Register • Suspension/Remission Register • Cash Book RTI, Ranchi

16. Registers and Records (contd.) • Conveyance/Lease Deed Register • Register of Transfer of Land and Recovery Register • Encroachment Register RTI, Ranchi

17. Audit Checks • Whether proper systems and procedures for computation and realization of land revenue exist • Whether proper control and monitoring mechanism exists for • Preventing loss of revenue/leakage etc. RTI, Ranchi

18. Audit Checks (contd.) • Whether relevant records exist for raising demands and recover dues in a timely manner • Whether revenue due to Government properly realized • Whether a mechanism exists for detecting cases of tax evasion RTI, Ranchi

19. Audit Checks (contd.) • Whether demand, collection and arrears of revenue correctly worked out • Is there periodical reconciliation between accounts of Village and Tehsil? • If opening balance of arrears tally with closing balance of previous year RTI, Ranchi

20. Audit Checks (contd.) • Whether statement of arrears includes non-agricultural assessment and miscellaneous dues like fines etc. • Whether proper registers were maintained at different levels RTI, Ranchi

21. Audit Checks (contd.) • Whether collections remitted in treasury on a timely basis • Whether accounts figures reconciled with treasury figures • Whether remissions and waivers were in order RTI, Ranchi

22. Audit Checks (contd.) Regarding land Settlement and Surplus Land Acquisition • Statement of land holdings in excess of ceiling • Statement of distribution of surplus land • Notices issued for acquiring surplus land RTI, Ranchi

23. Audit Checks (contd.) Regarding land Settlement and Surplus Land Acquisition • Compensation files • D & C Registers about land leased out on installment basis • Annuity rolls signed by Collectors • Register of bonds issued/paid as compensation RTI, Ranchi

24. Audit Checks (contd.) Where land given free of occupancy price • Whether land situated outside municipal limits • Purpose for which land granted • Reasons for non-levy of price RTI, Ranchi

25. Audit Checks (contd.) Regarding land Settlement and Surplus Land Acquisition • Whether land allotted is used for unauthorized purposes • Whether proper penalties levied for unauthorized usage • Whether leases renewed on due dates/expiry of term RTI, Ranchi

26. Audit Checks (contd.) Regarding Encroachment cases • Whether encroached for agricultural or non-agricultural purposes • Period of encroachment and extent of fine levied • Whether encroachment regularized RTI, Ranchi

27. Audit Checks (contd.) Regarding Encroachment cases • Whether vigilance party formed to detect cases of encroachment • Whether public notice given while regularising encroachments RTI, Ranchi