Rule 45 - Housing License Fees

F.R. 45. The Central Government may make rules or issue orders laying down the principles governing the allotment to officers serving under its administrative control, for use by them as residences, of such buildings owned or leased by it, or such portions thereof, as the Central Government may make available for the purpose. Such rules or orders may lay down different principles for observance in different localities or in respect of different classes of residences, and may prescribe the circumstances in which such an officer shall be considered to be in occupation of a residence.

F.R. 45-A I. Deleted. II. For the purpose of the assessment of licence fee, the capital cost of a residence owned by Government shall include the cost or value of sanitary, water supply and electric installations and fittings; and shall be either—

(a) the cost of acquiring or constructing the residence including the cost of site and its preparation and any capital expenditure incurred after acquisition or construction; or, when this is not known,

(b) the present value of the residence, including the value of the site. NOTE. — The cost of restoration or special repairs shall not be added to capital cost or present value, unless such restoration or repairs add to accommodation or involve replacement of the existing type of work by work of a more expensive character.

Provided that—

(i) the Central Government may make rules providing the manner in which the present value of residence shall be determined;

(ii) the Central Government may make rules determining what expenditure is to be regarded, for the purpose of sub-clause

(a) above, as expenditure upon the preparation of a site;

(iii) the Central Government may, for reasons which should be recorded, authorize a revaluation of all residences of a specified class or classes within a specified area to be conducted under the rules referred to in proviso

(i) above, and may revise the capital cost of any or all such residences on the basis of such revaluation;

(iv) the capital costs, howsoever calculated, shall not take into consideration (1) any charges on account of establishment and tools and plant other than such as were actually charged direct to the work in cases in which the residence was constructed by Government, or (2) in other cases, the estimated amount of such charges;

(v) the Central Government may, for reasons which should be recorded, write off a specified portion of the capital cost of a residence— 1. when a portion of the residence must be set aside, by the officer to whom the residence is allotted, for the reception of official and non-official visitors visiting him on business, or 2. when it is satisfied that the capital cost, as determined under the above rules, would be greatly in excess of the proper value of the accommodation provided;

(iv) in assessing the cost or value of the sanitary, water supply and electric installations and fittings, the Central Government may by rules determine what are to be regarded as fittings for this purpose.

Ill. The standard licence fee of a residence shall be calculated as follows: -

(a) in the case of a leased residence and a requisitioned residence, which is according to and within the entitlement of an officer, the standard licence fee shall be the same as in the case of residence of similar range of living area owned by the Government. The condition (No. 9) mentioned in Column 4 against Item No. 16 of the Annexure to Schedule V of Delegation of Financial Powers Rules, 1978, will be kept in mind while hiring the private accommodation.

(b) in the case of residences owned by Government, the standard licence fee shall be calculated on the capital cost of the residence, and shall be either—

(i) a percentage of such capital cost equal to such rate of interest as may from time to time be fixed by the President plus an addition for municipal and other taxes in the nature of house or property tax payable by

Government in respect of the residence and for both ordinary and special maintenance and repairs, such addition being determined under rules which the-Central Government may make, or

(ii) 6 per cent per annum of such capital cost, whichever is less.

(bb) In the case of a residence gifted to Government or leased on a nominal licence fee or on a licence fee-free basis to Government, the standard licence fee shall be the same as in the case of a residence owned by Government;

(c) In all cases, standard licence fee shall be expressed as standard for a calendar month and shall be equal to one-twelfth of the annual licence fee as calculated above, subject to the proviso that, in special localities or in respect of special classes of residence, the Central Government may fix a standard licence fee to cover a period greater than one month, but not greater than one year. Where the Central Government takes action under this proviso, standard licence fee so fixed shall not be a larger proportion of the annual licence fee than the proportion which the period of occupation as prescribed under Rule 45 above bears to one year.

NOTE 1. —For the purpose of dub-clauses (a),

(b) and (bb) above, the additions for both ordinary and special maintenance and repairs shall not include anything for the establishment and tools and plant charges, except to the extent allowed under proviso

(iv) to Clause II.

NOTE 2. —The Central Government may, by rule, permit minor additions and alterations the cost of which does not exceed a prescribed percentage of the capital cost of the residence, to be made during such period as the rule may determine, without the licence fee of the residence being increased.

IV. When Government supplies an officer with a residence leased or requisitioned or owned by Government, the following conditions shall be observed:—

(a) The scale of accommodation supplied shall not, except at the officer's own request, exceed that which is appropriate to the status of the occupant.

(b) Unless in any case it be otherwise expressly provided in these rules, he shall pay—

(i) licence fee for the residence, such licence fee being the standard licence fee as defined in Clause III above or 10 per cent of his monthly emoluments, whichever is less: '

(ii) Deleted.

'

(iii) Deleted.

(c) Notwithstanding anything contained in sub-clause

(b) above, the Central Government may—

(i) at any time, after the standard licence fees have been calculated under the provisions of Clause III above, group a number of residences, whether in a particular area or of a particular class or classes, for the purpose of assessment of licence fee, subject to the following conditions being fulfilled:

1. that the basis of assessment is uniform; and 2. that the amount taken from any officer shall not exceed 10 per cent of his monthly emoluments;

(ii) prescribe flat rate of monthly licence fee applicable throughout the country based on the cost of construction and plinth area, living area of the type of accommodation allotted to the employees, subject to the condition that the amount taken from any officer shall not exceed 10 per cent of his monthly emoluments.

(iii) by general or special order, provide for taking a licence fee in excess of that prescribed in sub-clause

(b) or sub-clause

(c)

(i) above from an officer—

(1) who is not required or permitted to reside on duty at the station at which the residence is supplied to him, or (2) who, at his own request, is supplied with accommodation which exceeds that which is appropriate to the status of the post held by him, or (3) who is in receipt of a compensatory allowance granted on account of dearness of living, or (4) who is permitted to sub-let the residence supplied to him, or (5) who sub-lets without permission the residence supplied to him, or (6) who does not vacate the residence after the cancellation of allotment, or (7) at whose request additions or alterations are made in the residence supplied to him. (8) who or any member of his family owns a house or has any interest in a house belonging to a Hindu undivided family of which he is a member,

EXPLANATION. - For the purpose of Item (8), —

(a) "house", in relation to an officer or member of his family, means a building or part thereof used for residential purposes and situated within the jurisdiction of a local municipality or of any municipality contiguous to a local municipality;

NOTE. —A building, part of which is used for residential purposes, shall be deemed to be a house notwithstanding that any part of it is used for nonresidential purposes;

(b) "local municipality", in relation to an officer, means the municipality within whose jurisdiction his office is located;

(c) "member of his family", in relation to an officer means the wife or husband, as the case may be, or a dependent child of the officer;

(d) "municipality" includes a municipal corporation, a municipal committee or board, a town area committee, a notified area committee and a cantonment board;

(d) When licence fee has been recovered short through an error in calculation of standard licence fee or through mistake or inadvertence, the Government servant shall pay the deficiency on demand made within 12 months from the date on which the short recovery was made, in such number of instalments as the Government may direct;

(e)

(i) Where a standard licence fee of a residence cannot be determined for reasons to be recorded in writing at the time of its allotment, the Government servant shall pay such licence fee as may be fixed by the Government on the basis of the actual expenditure on the construction or the cost of acquisition of the building, the cost of fittings therein and the known and anticipated liabilities relating thereto plus 10% of the amount so arrived at or 10% of his monthly emoluments, whichever is less:

(ii) The licence fee so fixed shall remain effective until the last date of the calendar month in which the standard licence fee for that residence is determined.

(iii) In addition to the licence fee referred to in sub-clause

(e) (i), a Government servant shall pay municipal and other taxes payable by the Government in respect of the residence, not being in the nature of house or property tax, and compensation for the charges payable by the Government in respect of the services provided for the residence.

(f) Notwithstanding anything contained in sub-clause

(e) (i), if recovery for licence fee is made from a Government servant in respect of the residence allotted to him in accordance with that - sub-clause or on any other basis adopted before the 4th June, 1963, in respect-of that residence and the standard licence fee for that residence has not been determined, the licence fee so recovered shall be deemed to be the licence fee for that residence recoverable under the rules.

V. In special circumstances, for reasons which should be recorded, the Central Government—

(a) may, by general or special order, grant licence fee-free accommodation to any officer or class of officers, or

(b) may, by special order, waive or reduce- the amount of licence fee to be recovered from any officer, or

(c) may, by general or special order, waive or reduce the amount of municipal and other taxes, not being in the nature of house or - property tax, to be recovered from any officer or class of officers.

VI. If a residence is supplied with services, other than water supply, sanitary or electric installations and fittings, such as furniture, tennis court or garden maintained at the cost of Government, licence fee shall be charged for these in addition to the licence fee payable under Clause IV. The tenant will also be required to pay the cost of the water, electric energy, etc., consumed. The Central Government may make rules prescribing how the additional licence fees and charges shall be determined, and such rules may also authorize the remission or reduction of the additional licence fee or charge in special circumstances for reasons which should be recorded.

VII. Deleted. VIII. Deleted; F.R. 45-B. I. This rule applies to Government servants other than those to whom Rule 45-A applies or than those occupying residences belonging to the Indian Railway or rented at the cost of railway revenues.

II. For the purpose of sub-clause-

(b) Clause III, the capital cost of a residence owned by Government shall not include the cost or value of such special services and installations (including furniture, tennis courts and sanitary, water supply or electric installations and fittings) as it may contain, and shall be either—

(a) the cost of acquiring or constructing the residence, including the cost of site and its preparation and any capital expenditure incurred after acquisition or construction; or, when this is not known,

(b) the present value of the residence including the value of site. NOTE. — The cost of restoration or special repairs shall not be added to capital cost or present value, unless such restoration or repairs add to accommodation or involve replacement of the existing type of work by work of a more expensive character.

Provided that—

(i) the Central Government may make rules providing the manner in which the present value of residences, including sites, shall be determined;

(ii) the Central Government may make rules determining what expenditure is to be regarded for the purpose of sub-clause

(a) above as expenditure upon the preparation of a site;

(iii) the Central Government may, for reasons which should be recorded, authorize a revaluation of all residences of a specified class or classes within a specified area to be conducted under the rules referred to in proviso

(i) above, and may revise the capital cost of any or all such residences on the basis of such revaluation;

(iv) the capital cost, howsoever calculated, shall not take into consideration (1) any charges on account of establishment and tools and plant other than such as were actually charged direct to the work in cases in which the residence was constructed by Government, or (2) in other cases, the estimated amount of such charges;

(v) the Central Government may, for reasons which should be recorded, write off a specified portion of the capital cost of a residence— (1) when a portion of the residence must be set aside, by the Government servant to whom the residence is allotted, for the reception of official and non-official visitors visiting him on business, or (2) when it is satisfied that the capital cost, as determined under the above rules, would be greatly in excess of the proper value of the accommodation provided;

(vi) in assessing the cost or value of the sanitary, water supply and electric installations and fittings, the Central Government may, by rules, determine what are to be regarded as fittings for this purpose.

III. The standard licence fee of a residence shall be calculated as follows: —

(a)

(i) In the case of a leased residence, the standard licence fee shall be the sum paid to the lessor;

(ii) In the case of a requisitioned residence, the standard licence fee shall be the compensation payable to the owner of the building;

Plus in both cases an addition determined under rules which the Central Government may make, for meeting, during the period of lease or requisition, as the case may be, such charges for both ordinary and special maintenance and repairs and for capital expenditure on additions or alterations as may be a charge on Government and for interest on such capital expenditure as also for municipal and other taxes in the nature of, house or property tax, payable by Government in respect of such residence.

(b) In the case of residences owned by Government, the standard licence fee shall be calculated on the capital cost of the residence (including cost of additions or alterations, if any) and shall be a percentage of such capital cost equal to such rate of interest as may from time to time be fixed by the President plus an addition for municipal and other taxes in the nature of

house or property tax payable by Government in respect of the residence and for both ordinary and special maintenance and repairs, such addition being determined under rules which the Central Government may make. (bb) In the case of a residence gifted or leased on a nominal licence fee or a licence fee-free basis to Government, the standard licence fee for the residence shall be calculated as in the, case of residence owned by Government;

(c) In all cases, standard licence fee shall be expressed as standard for a calendar month and shall be equal to one-twelfth of the annual licence fee as calculated above, subject to the proviso that, in special localities or 'in respect of special classes of residence, the Central Government may fix a standard licence fee to cover a period greater than one month, but not greater than one year. Where the Central Government takes action under this proviso, standard licence fee so fixed shall not be a larger proportion of the annual licence fee than the proportion which the period of occupation as prescribed under Rule 45 above bears to one year.

NOTE 1. — For the purpose of sub-clauses (a), (b), and (bb) above, the additions for both ordinary and special maintenance and repairs shall not include anything for the establishment and tools and plant charges, except to the extent allowed under proviso

(iv) to Clause II.

NOTE 2. —The Central Government may, by rule permit minor additions and alterations, the cost of which does not exceed a prescribed percentage of the capital cost of the residence, to be made during such period as the rule may determine, without the licence fee of the residence being increased.

IV. When Government supplies a Government servant with a residence leased or requisitioned or owned by, Government, the following conditions shall be observed: —

(a) The scale of accommodation supplied shall not, except at the officer's own request, exceed that which is appropriate to the status of the occupant.

(b) Unless in any case it be otherwise expressly provided in these rules, he shall pay—

(i) licence fee for the residence, such licence fee being the standard licence fee as defined in Clause HI above or 10 percent of his monthly emoluments, whichever is less;

(ii) municipal and other taxes payable by the Government in respect of the residence not being in the nature of house or property tax; and

(iii) compensation for the charges payable by the Government in respect of the services provided for the residence.

(c) Notwithstanding anything contained in sub-clause

(b) above, the Central Government may— (1) at any time, after the standard licence fees have been calculated under the provisions of Clause III above, group a number of residences, whether in a particular area, or of a particular class or classes for the purpose of assessment of licence fee, subject to the following conditions being fulfilled:

(1) that the basis of assessment is uniform, and (2) that the amount taken from any Government servant shall not exceed 10 per cent of his emoluments.

(ii) by general or special order, provide for taking a licence fee in excess of 10 per cent of his emoluments from a Government servant— (1) who is not under his own administrative control, or (2) who is not required or permitted to reside on duty at the station at which the residence is supplied to him, or (3) who, at his own request, is supplied with accommodation which exceeds that which is appropriate to the status of the post held by him, or (4) who is in receipt of a compensatory allowance granted on account of dearness of living.

(d) When licence fee has been recovered short through an error in calculation of standard licence fee or through mistake or inadvertence, the Government servant shall pay the deficiency on demand made within 12 months from the date on which the short recovery was made, in such number of instalments as the Government may direct;

(e)

(i) Where the standard licence fee of a residence cannot be determined for reasons to be recorded in writing at the time of its allotment, the Government servant shall pay such licence fee as may be fixed by the Government on the basis of the actual expenditure on the construction, or the cost of fittings therein and the known and anticipated liabilities relating thereto plus 10% of the amount so arrived at or 10% of his monthly emoluments, whichever is less:

(ii) The licence fee so fixed shall remain effective until the last date of the calendar month in which the standard licence fee for that residence is determined.

(iii) In addition to the licence fee referred to in sub-clause

(e) (i), a Government servant shall pay municipal and other taxes payable by the Government in respect. of the residence, not being in the nature of house or property tax, and compensation for the charges payable by the Government in respect of the services provided for the residence.

(f) Notwithstanding anything contained in sub-clause

(e) (i), if recovery for licence fee is made from a Government servant in respect of the residence allotted to him in accordance with that sub-clause or on any other basis

adopted before the 4th June, 1963, in respect of that residence and the standard licence fee for that residence has not been determined, the licence fee so recovered shall be deemed to be the licence fee for that residence recoverable under the rules.

V. In special circumstances, for reasons which should 'be recorded, the Central Government—

(a) may, by general or special order, grant licence fee-free accommodation to any Government servant or class of Government servants, or

(b) may, by special order, waive, or reduce the amount of licence fee to be recovered from any Government servant, or

(c) may, by general or special order, waive or reduce the amount of municipal and other taxes, not being in the nature of house or property tax to be recovered from any Government servant or class of Government servants.

VI. If a residence is supplied with one or more of the following or similar services, furniture, installations (including fittings) for water or electricity supply or for sanitary purposes, tennis court or garden maintained at the cost of Government, licence fee shall be charged for these in addition to the licence fee payable under Clause IV. The tenant will also be required to pay the cost of the water, electric energy, etc., consumed. The Central Government may make rules prescribing how the additional licence fee and charges shall be determined, and such rules may also authorize the remission or reduction of the additional licence fee or charge in special circumstances for reasons which should be recorded.

VII. Deleted. F.R. 45-C. For the purpose of Rules 45-A and 45-B, "emoluments" means—

(i) Pay;

(ii) Payments from general revenues and fees, if such payments or fees are received in the shape of a fixed addition to monthly pay and allowances as part of the authorized remuneration of a post;

(iii) Compensatory allowances, other than travelling allowance, Children's Educational allowance, uniform allowance, clothing allowance, outfit allowance, special outfit allowance, uniform grant and grant for horse and saddlery, whether drawn from the Consolidated Fund of India or of a State or from a local fund;

(iv) Exchange Compensation Allowance;

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(v) Pension, other than a pension drawn under the provisions of Chapter XXXVIII, Civil Service Regulations, or compensation received under the Workmen's Compensation Act, 1923, as subsequently amended;

(vi) In the case of a Government servant under suspension and in receipt of a subsistence grant, the amount of the subsistence grant, provided that, if such Government servant is subsequently allowed to draw pay for the period of suspension the difference between the licence fee recovered on the basis of the subsistence grant and the licence fee due on the basis of the emoluments ultimately drawn shall be recovered from him.

It does not include allowances attached to the Indian Police Medal. NOTE 1. — The emoluments of a Government servant paid at piece-work rates shall be determined in such a manner as the Central Government may prescribe.

NOTE 2. —The emoluments of an officer on leave mean the emoluments drawn by him for the last complete calendar month of duty performed by him prior to his departure on leave.

NOTE 3. —The amount of pension to be taken into account will be the amount originally sanctioned, i.e., before commutation, if any, and will also include the pension equivalent of retirement gratuity and other forms of retirement benefits, if any, e.g., Government’s contribution to a Contributory Provident Fund, commuted value of pension, etc.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1A building is considered a 'house' even if a portion is used for non-residential purposes.
• 2Defines 'local municipality' as the municipality where the employee's office is located.
• 3Clarifies 'member of his family' to include spouse and dependent children.
• 4Outlines the process for recovering underpaid license fees due to errors, with a 12-month recovery window.
• 5Specifies how license fees are calculated when a standard fee is not initially available, based on construction/acquisition costs plus a percentage.

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.