ANNEXURE-B

(See paragraphs 279 and 281)

Instructions for Calculating Rent and Preparing Rent Statements for Residential Buildings

1. Standard rent—The standard rent for residential buildings constructed or acquired at the cost of Government for the benefit of Government servants will be calculated in the manner indicated in rule 45-A—III of the Fundamental Rules.

2. Capital value—The capital value of a residential building will be determined in accordance with Fundamental Rule 45-A—II and the rules made thereunder.

3. Interest—The rate of interest to be adopted will be in accordance with the audit instructions regarding Fundamental Rule 45-A—III (b) (i).

4. Maintenance and repairs—Under this heading are included "annual repairs," "quadrennial repairs" and "special repairs" or "renewals." Annual repairs mean ordinary repairs which are done to a building annually as distinct from quadrennial repairs which are required quadrennially or at short intervals. For the purpose of rent calculations the estimate for annual and quadrennial repairs should be drawn up in the manner indicated in the sample Form III attached. This estimate should include municipal rates and taxes of the nature of house or property tax. Provision for water-tax payable to municipalities should also be made at one-twelth of the annual assessment; but it should be shown quite separately in the rent statement from the rent of the building. Special repairs will consist of renewals of floors or roofs or other items of work involving replacements, occurring at long intervals. It is necessary for this purpose to estimate the life of each class of work and calculate the sum which, set aside annually as a sinking fund, will produce the value of the work within the period of its estimated life. The following annual charges will be found to be necessary for the periods mentioned.

Life of work	Percentage of value to be set aside annually
1	2
100 years	1/10th	Per cent
80 to 70 years	1/5th	Do.
60 years	2/5th	Do.
50 ,,	2/3rd	Do.
40 ,,	1	Do.
30 ,,	2	Do.
25 ,,	2½	Do.
20 ,,	3	Do.

5. A table is given at the end (Form 1) showing the average life of various classes of work, which the Public Works Department considers suitable for the purpose of calculating rents. The life of any class of work not included in the list should be estimated by the Head of the Department in consultation with the Divisional Engineer concerned.

6. Buildings purchased by Government or built in the past of which no record of quantities of each class of work exists, should be classed in accordance with the table given in Form II and depreciation calculated accordingly. The percentage for depreciation and renewals should be charged on the probable capital cost of the building exclusive of the cost of land and other items not subject to renewals which should be estimated by the Head of the Department on the basis of the probable expenditure which would be incurred in constructing similar building at modern rates, if in his opinion the purchase value is either below or above the true value.

7. Renewals (i.e. special repairs), which do not cause an increase in the capital value of a building, will be charged in full to repairs, and those which really represent an increase in value will, only to the extent of such increase, be chargeable to the capital cost, the balance being debitable to repairs.

8. The annual, quadrennial and special repairs taken as a whole should not exceed 2.1 per cent per annum of the capital value of the residential building and an endeavour should be made to keep them as low as possible.

NOTE—In any case where it is proposed to exceed the percentage the approval of the Chief Engineer, Public Works Department, must be obtained.

9. Rent on service installation (water-supply, sanitary, heating and electrical installations) and furniture should be calculated in accordance with the provisions of Subsidiary Rules 20-A (c) and 22-C, respectively, of the Financial Handbook, Volume II. The following illustration indicates the manner in which rent of a residence should be calculated.

I—RESIDENCE

Class I or II

A—Building—	Rs.
(a) Capital cost as previously fixed excluding cost of site— Rs. 1,325)	20,050
(b) Add—For additions after January 1,1922	1,000
Add—Cost of subsequent outlay on account of new verandah and porch	1,037
Total	22,087
Interest on Rs. 20,050 at 3½ per cent vide (a)	702 per annum.
Interest on Rs. 2,037 at 6 per cent vide (b)	122 do.
Annual repairs	337 do.
House-tax	42 do.
Quadrennial repairs	28 do.
Special repairs	58 do.
Total, A	1,284
B—Water-supply installation—	Rs.
(c) Capital value as previously fixed	525
(d) Add—For additions after January 1,1922	125
Add—Cost of subsequent outlay on account of supplying a new tap	29
Total	679
Interest on Rs. 525 at 3 ½per cent vide (c)	24 per annum.
Interest on Rs. 154 at 6 per cent vide (d)	9 do.
Annual repairs 1 per cent	7 do.
Special repairs at 3 ½per cent	24 do.
Total, B	64
C—Electric installation—	Rs.
Cost of installation and fittings	1,375
Cost of service line	275
Total	1,650
	Rs.
Interest on Rs. 1,650 at 6 per cent	99 per annum.
Annual repairs on Rs. 1,675 at 1½ per cent	20 do.
Special repairs on Rs. 1,675 at 8½ per cent	48 do.
Total, C	167
	Rs.
D—sanitary installation—
Capital cost as previously fixed	455
Add—Cost of subsequent outlay on account of minor additions	20
Total	475
Interest on Rs. 455 at 4½ per cent	20 per annum.
Interest on Rs. 20 at 6 per cent	1 do.
Annual repairs at 1 per cent	5 do.
Special repairs 8 ½ per cent	17 do.
Total, D	43
Total annual rents of A+B+C+D =Rs. 1,284+64+167+43=1,558.
Therefore monthly rent under Fundamental Rule 45-A—III (b) (i)—Rs. 1,558÷12	130 per mensem.
Calculations under Fundamental Rule 45-A—III (b) (ii)—
Capital value of A+B+C+D =Rs. 22,087+679 × 1,650+475 =24,891.
6 per cent on capital value	1,493 per annum.
Therefore monthly rent =Rs. 1,493÷12	124.50
Under Fundamental Rule 45-A—V(b) (i) the standard rent is the lesser of the two as calculated above and is therefore	124.50 per mensem.
NOTE—In addition water-tax at the rent of Rs. .....per mensem will be recovered from the tenant for the period during which he remains in occupation or is demand to be in occupation of the residence.
II—FURNITURE
	Rs.
(a) Furniture purchased before June 19, 1972	1,545
(b) Furniture purchased after June 19, 1972	527
Total	2,072
(a) Interest on Rs. 1,545 at 3½ per cent	54 per annum.
Annual repairs on Rs. 1,545 at 1½ per cent	23 do.
Renewals on Rs. 1,545 at 3 per cent	46 do.
(b) Interest on Rs. 527 at 6 per cent	32 do.
Annual repairs on Rs. 527 at 3 per cent	16 do.
Renewals on Rs. 527 at 3 per cent	16 do.
Total	187
Monthly rent = Rs. 187÷12 or Rs. 16.

10. Provisional rent statement—A provisional rent statement must accompany an estimate for a work if in accordance with Subsidiary Rule 20-C in Financial Handbook, Volume II, the execution of the work proposed will necessitate revision of the standard rent. This should be a simple statement showing rent at 6 per cent on the expenditure chargeable to capital. The rent should be charged from the date of completion of the work pending sanction of the final rent statement by the competent authority. This procedure will also apply to the fixation of rent of a newly constructed building.

FORM I (See rule 5)

Items	Class of work	Life of the work	Percentage of value to be charged accordingly	Remarks
1	2	3	4	5
	Masonry	Per cent
1	Brick work in lime	Everlasting		For purpose of calculating rents.
2	Brick work in clay	100 years	1/10th	For purpose of calculating rents.
3	Boulder masonry in lime	Everlasting
4	Coursed rubble in lime mortar	Do.
5	Coursed rubble in mud	100 years	1/10th
6	Cut-stone work, rough	Everlasting
7	Cut-stone work, fine	Do.
8	Brick-arches in lime mortar	100 years	1/10th
9	Rubble arches in lime mortar	100 years	Do.
10	Sundried bricks in clay	75 years	1/5th
	Flooring
11	Brick-on-edge or flat brick flooring	40 years	1	In rooms
	Brick-on-edge on 7.5 cm. concrete	20 years	3	In passage where there is heavy wear.
12	Granolithic concrete floor, stone aggregate, concrete and a sand matrix	50 years	2/3rds.
13	Stone flooring on 7.5 cm. concrete	50 years	Do.
14	Terraced floor of lime concrete	20 years	3
15	Salwood work in roofs	60 years	2/5th
16	Husna work in roofs	40 years	1
17	Country work in roofs	15 years	4
18	Allahabad or lock-tiling	25 years	2 1/2
19	Iron scantlings in roofs	80 years	1/5th
20	Jack-arched roofing finished off with concrete terracing	75 years	Do.
21	Terraced roofing or stone flags	Do.	Do.
22	Reinforced concrete roofing	Do.	Do.
	Roofing		Per cent
23	Naini Tal pattern roofing of 22 B.W.G. sheet iron	50 years	2/3rd
24	Sal ballies in C.I. roofs	20 years	3
	Ceiling
25	Expanded metal ceiling	50 years	2/3rd
26	Pinewood ceiling	30 years	2
	Miscellaneous
27	Teakwood doors and windows	40 years	1
28	Salwood doors and windows	Do.	1
29	Country wood doors and windows	30 years	2
30	Stone sunshades and other similar stone work	100 years	1/10th
31	Wrought iron work	80 years	1/5th
32	Rolled steel joists	75 years	Do.	If protected

FORM II (See rule 6)

Class	A	B	C	D	E
Percentage of capital cost to be charged for depreciation and renewals	0.4 per cent	0.5 per cent	0.6 per cent	0.7 per cent	0.8 per cent
1	2	3	4	5	6
Foundations and plinth	Pakka	Pakka and kachcha-pakka.	Kachcha-pakka	Kachcha-pakka	Kachcha-pakka or no founds.
Superstructure	Pakka and kachcha-pakka.	Pakka, kachcha-pakka and kachcha in protected walls.	Kachcha-pakka and kachcha in protected walls	Kachcha-pakka and kachcha in any position protected or otherwise.
Roofs	(1) Jack-arched on rolled steel joists.	(1) Allahabad or lock tiles on inferior wooden framework.	As in A class	As in B class—also country tiled and thatched roofs on good timber scantlings.	Country tiled and thatched roofs and indifferent support.
	(2) Allahabad or lock tiles on iron or sal frame work.	(2) Hill pattern and corrugated iron roofs or iron or wood.
	(3) Terraced roofs on iron and salwood beams.
	(4) Reinforced concrete roofs.
(a) Floors	(1) Stone-flagged	(1) Terraced, lime concrete.	As in A Class	As in B Class	As in B Class
	(2) Brick-on-edge	(2) Wooden floors
	(3) Tiled floors
	(4) Granolithic cement concrete.
Doors and windows	Teak and sal wood	Doors of sal or other wood than teak.	Ditto	Ditto	Country wood and wood other than sal and teak.
Ceiling	X.P. metal	Wooden	Ditto	Ditto

NOTES—(W) The above specifications show in general terms the class in which a building should be placed for purpose of assessing rents. It cannot of course be expected that buildings will be found to fit any of these specifications in every respect, and the classification of each building must be settled by the head of the department in consultation with the Superintending Engineer concerned.

(X) Classes A and B will be found suitable for buildings recently erected by the Public Works Department and Classes C and D will generally be suitable for old buildings which have been erected by Government in the past or purchased. Few if any main buildings of residential quarters will come into class E, which will mostly be reserved for outhouses.

(Y) In classifying buildings the general principle should be observed that all items should be excluded from consideration which are renewed in whole or parts at intervals of four years or less, e.g. an outhouse has the following specification : Pakka founds, kachcha-pakka walls, kachcha floors, sal-battened doors, country tiled roofs on jafri over good sal supports—this building would be classed as A or B as the kachcha floors and country tiles in jafri work are kept in repairs annually.

(Z) In the case of terraced roofs on sal beams, such as are found in old buildings, it is to be observed that if the cost of replacing this style of roof were worked out, it would come to more than that of the jac-arched by which it would now-a-days be replaced. Therefore although not in reality so permanent a form of roof, such a roof may be reckoned as of equal permanence to jack-arched roof for purposes of classifying a building.

FORM III (See rule 4)

Rent statement for Secretaries’ quarters Bungalow no.

Sl. no.	Sub-head of works	Rate	Unit	Standard quantities						Total	Cost of repairs
				Main building	Out houses	Cook houses	Stable and coach houses	Latrine	Road		Annual		Quadrennial
				Main building	Out houses	Cook houses	Stable and coach houses	Latrine	Road		Quantity	Cost	Quantity	Cost
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
1	Scarping walls
2	White washing (one coat)
3	Distempering
4	Painting and varnishing
5	Coaltarring
6	Cleaning and oiling
7	Repairs to terraced roofs
8	Repairs to tiled roofs
9	Repairing latrines
10	Renewal of road metal
11	Repairing and easing doors
12	Lime plaster
13	Lime pointing
14	Repairing fence
15	Unforeseen
16	Taxes
	Total
	Total, annual repairs

All the taxes will be paid by Government but water-tax will be recovered from the tenants monthly at one-twelfth of the annual assessment for the period during which he remains in occupation or is deemed to be in occupation of the residence.

Special charges (renewals)	Life in years	Percentage	Capital value	Amount
1	2	3	4	5
			Rs.	Rs.
1. Brick work in clay	100	1/10	2,085	2
2. Brick arches in lime	100	1/10	408	1

3. Brick-on-edge of flat brick floor	40	1/10	522	5
4. Jack-arched roof	75	1/5	1,413	3
5. Allahabad-tiled roof	25	2½	491	13
6. Salwood work in roofs	60	2/5	1,352	5
7. Salwood work in doors and windows	40	1/10	568	6
8. Sal battened doors	40	1/10	163	2
9. Teakwood doors and windows	40	1/10	1,307	13
10. Rolled steel joints	75	1/5	1,788	4
11. W.I. work	80	1/6	333	1
12. Gates	40	1/10	250	3
Total				58

	Rs.
Capital value—Rs. 22,087
Interest on Rs. 22,087 at 3½ per cent	773
Annual repairs	385
Quadrennial repairs	28
Special repairs	58
Total	1,244

Therefore monthly rent—Rs. 1,244–12—Rs. 104.

Calculations in accordance with Fundamental Rule 45-A-III(B)(ii)—

Capital value—Rs. 22,087.

Six per cent on Rs. 22,087—Rs. 110.50.

Therefore monthly standard rent is Rs. 104.

NOTE—In addition water-tax at the rate of Rs. per mensem will be recovered from the tenant for the period during which he remains in occupation or is deemed to be in occupation of the residence.