(1) Where permission for a change in the use or development of any land or building is granted under Chapter-Vill of this Act in the whole or any part of the planning area, and such change or development is capable of yielding a better income to the owner, the Planning Authority may levy a charge (hereinafter called the Development Charge) not exceeding one-third of the estimated increase in the value of the land or building in the prescribed manner for permitting such change in use or development.
(2) The Development Charge shall be leviable on any person who undertakes or carries out any such development or institutes or changes any such use.
(3) Notwithstanding anything contained in sub-section (1), no Development Charge shall be levied on development or institution of, or change of use of any land vested in or under the control or possession of the Central Government or the Government.
(4) The Government may, by rules, provide for the exemption from the levy of Development Charge any development or institution or change of any use of any land specified in the rules.
(5) The Development Charge shall not exceed the limit prescribed under the rules from time to time.
363 Assessment of Development Charge