(1) The amount payable in respect of an inam other than a religious or charitable inam vesting in the State Government under this Act shall be the aggregate of the following, namely :-
(i) a sum equal to ten times the net annual income from the lands held by the tenants entitled to be registered under section 5 of this Act ;
(ii) the value, as determined by the Forest Department of such of the sandalwood trees on the said land as are actually existing on the appointed day and registered in accordance with the rules made under the Karnataka Forest Act, 1963 (Karnataka Act 5 of 1964) ; and
(iii) in respect of the income from minor forest produce (other than sandalwood) an amount equal to three times the average net annual income from minor produce derived by the inamdar in the previous three years :
Provided that where the particulars necessary to compute the average net annual income are not available for the full period, or where the particulars available appear in material respects to be incorrect, the computation may be made in such manner as may be prescribed.
(2) For purposes of sub-section (1), the net annual income shall be deemed to be,-
(i) in respect of lands held by a permanent tenant, the land revenue of such lands less the proportionate land revenue, jodi, quit rent or peshkush paid by the inamdar to the State Government, as determined in the prescribed manner ;
(ii) in respect of lands held by other tenants, ten times the land revenue of such lands less the proportionate land revenue, jodi, quit rent or peshkush paid by the inamdar to the State Government, determined in the prescribed manner.