Rule 71 — GAR
Original Rule Text
71. The classification of the sale-proceeds of Government land and buildings should be regulated in accordance with the schedules given below:
# Schedule I
<table><tr><td>Sale proceeds of land etc. Heads to which creditable 1 2 "() When the cost of the land was originally debited to, or The Capital or Revenue account of the remains at the debit of the Capital Account of any Project project, as the case may be, according to the or Undertaking for which regular Capital and Revenue allocation rules applicable to the department Accounts are: kept or was originally mett from: the revenue concerned. account of: such Project or Undertaking.
(i) When the cost was originally debited to a capital The Capital expenditure head originally expenditure head outside the Revenue Accounts, even debited. though no regular Capital and Revenue Accounts are kept for the work covered by the Capital expenditure. (iii When the cost was originally debited, within the The receipt head relating to the department Revenue: Section of the accounts, to any service or concerned or, in the case of department not revenue department for which no capital and Revenue having a corresponding receipt head '0075 Accounts are kept. Miscellaneous General Services-Sale of land and Property.
(iv) When cost was not so debited.
(a) The right of the Government in agricultural land not 0401-Crop. Husbandry Other Receipts. covered by clause (b),
(b) Nazul lands in Uttar Pradesh, Punjab and Madhya 0075- Miscellaneous General Services- sale Pradesh or elsewhere and lands in Punjab equipped at the of land and property.. cost of State revenues for re-sale for building purposes;
(c) In all other cases;- () If: sold in the Public Works Department. The functional receipt major head concerned or the head '0059-Public Works'. (i)) If sold in the Defence The major heads "0076-Defence Services- Army". "0077-Defence Services-Navy", and "0078-Defence Services-Air Force" as the case may be.
(ii) if sold by civil agency. The functional receipt- a major head concerned or 0075-Miscellaneous General Services'.</td></tr></table>
: In the case of land acquired by Government on payment for Companies, Railways, or of Government land made over to such Railways by other Government Departments or Railways, where the cost was originally debited to "3001-Indian Railways etc. Subsidised Companies- Land' the sale proceeds are creditable to '1001-Indian Railways etc-sale of Land Subsidised Companies (3) on the receipt side.
What This Means
Rule 71 is one of the most detailed classification rules in GAR 1990. It provides exhaustive schedules (Schedule I and Schedule II) for classifying the sale proceeds of government land and buildings. Because government land and buildings were acquired or constructed under different circumstances and debited to different account heads, the sale proceeds must be credited to different heads depending on the original cost treatment.
Schedule I covers land. The key principle is that proceeds go back to the same account that originally bore the cost: if land was part of a capital project's account, sale proceeds go to that project's capital or revenue account; if the original cost was in a capital expenditure head outside Revenue Accounts, proceeds go back to that capital head; if the original debit was within the Revenue Section, proceeds go to the relevant receipt head or to '0075-Miscellaneous General Services-Sale of Land and Property.' For land with no traceable original debit, proceeds go to specific heads (agricultural land to 0401, Nazul and Punjab/MP/UP plots to 0075, Defence land to the relevant Defence head).
Schedule II covers buildings, following similar logic. The rule also addresses municipal rates and taxes — a related topic — specifying that taxes on non-residential buildings used for functional purposes are debited to the relevant function head, while taxes on residential buildings are debited to '2216-Housing-Government Residential Buildings' or '2059-Public Works.'
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Schedule I: Classification of sale proceeds of government land follows the original cost treatment — proceeds credited to the same type of head that bore the original cost.
- 2Schedule II: Same principle applies to buildings — original capital or revenue account of the project, or relevant functional receipt head.
- 3Head '0075-Miscellaneous General Services-Sale of Land and Property' is the catch-all for land/buildings without a more specific applicable head.
- 4Defence property (land and buildings) sold through Defence Department goes to the relevant Defence major head (0076/0077/0078).
- 5Municipal rates and taxes on non-residential functional buildings go to the relevant function's expenditure head under 'Rent, Rates and Taxes.'
- 6Taxes on residential government buildings go to '2216-Housing-Govt Residential Buildings-Maintenance and Repairs' or '2059-Public Works.'
Practical Example
The Ministry of Health sells an old staff quarters building in Delhi. The building was originally constructed with capital expenditure debited to '4210-Capital Outlay on Medical and Public Health.' Schedule II of Rule 71 applies. Under clause (i) of Schedule II, since the original cost was debited to a capital expenditure head outside the Revenue Accounts, the sale proceeds of Rs. 1.8 crores are credited to '4210-Capital Outlay on Medical and Public Health' (the same capital head originally debited) — not to a revenue receipt head. Separately, the Delhi Municipal Corporation sends a property tax bill of Rs. 1.2 lakhs for government residential quarters occupied by ministry staff. This is a tax on a residential building, so under the municipal rates and taxes provision of Rule 71, it is debited to '2216-Housing-Government Residential Buildings-Maintenance and Repairs.'
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.