THIRD SCHEDULE
(See sections 6 and 7)
The rent enhanceable under clause (a) of sub-section (1) of section 6 or sub-section (1) of section 7, as the case may be, shall be calculated at the rates shown in column (2) of Table I given below, compounding on an yearly basis, with reference to the date of agreement in the case of rent agreed to between the landlord and the tenant, and the date of commencement of construction in the case of standard rent, to arrive at the rent payable for the period for which rent is to be determined :
Provided that the total amount of enhancement as so calculated till the commencement of this Act shall be restricted in respect of a premises on the basis of its size as indicated in column (1) of the Table II to such percentage as is specified in the corresponding entries in column (2) of the said Table :
Provided further that the enhancement in the case of a tenancy entered into before the commencement of this Act shall be effected gradually in five equal yearly instalments.
Explanation.- The base calculation of annual enhancement of rent after the commencement of this Act shall be the rent payable in a year as if the total enhancement of rent due at the commencement of this Act came into effect immediately rather than gradually over a five year period, and such annual enhancement of rent shall be payable in addition to the graduated enhancement :
Provided also that in relation to a landlord, referred to in section 31, who is a widow, a handicapped or a person of the age of sixty-five years or more, the enhancement of rent shall not be spread over a period of five years but shall come into force immediate effect.
Table-I
| Date of agreement/ commencement of construction | Rate of annual enhancement of rent |
| 1 | 2 |
| 1. Upto 31st December, 1949 | Two per cent |
| 2. On and from 1st January 1950to 31st December, 1960. | Four per cent |
| 3. On and from 1st January 1961 to 31st December, 1970. | Six per cent |
| 4. On and from 1st January, 1971 to 31st December, 1994. | Eight per cent |
| 5. On and from 1st January, 1995 | Seventy-five per onwards cent of annual |
| inflation rate based on | whole sale price Index. |
Table-II
| premises of (built up area) |
| maximum permitted enhancement of rent | |
| 1 | 2 |
| 1. 50 square metres or less. | Twenty five per cent |
| 2. more than 50-square metres but upto 90-square metres. | Fifty per cent |
| 3. more than 90-square metres but upto 160-square metres. | Seventy five per cent |
| 4. more than 160-square metres | Hundred per cent |