The Annual Value of Holding of a Commercial unit is calculated by the following Procedure:
Step I   - Add Civil Cost of the building + the cost of P.H & Electric fitting
Step II  - Take 7.5% of the value arrived through step I
Step III - Add 0.5% of the land cost with Step II
Step IV - 17.5% of the Cost arrived at Step III is the Holding Tax payable per annum

 Tax to be fixed on holdings given on Rent the following procedure is followed:
Step I - Monthly rent of the building x 12 = X
Step II - Deduct 15% of X towards maintenance cost
Step III- Add 0.5% of the Land Cost where the building is located
Step IV- Hence annual value of the building is (Step I + Step III – Step II)
    Holding Tax is levied @ 17.5% of the Annual Value arrived at Step IV Govt. buildings, Govt. Hospitals, Govt. educational institutions, Govt. cultural institution only pay 7.5% towards latrine tax & light tax and such institutions are being exempted of paying 10% Holding Tax as per the Act.
   Holding Tax constitutes the prime source of Revenue for the Municipal Corporation. On finalization of Rules & bye-laws the Corporation will be introducing the self-assessment of the Holding dispensing with the cumbersome process of assessment thereby bringing more transparency in to the Assessment procedure, which will facilitate the collection of dues also.
 N.B- Non-payment of Holding Tax as per the provision of the Act can land a holder into many troubles on invoking of the Penal provisions of the Act.

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