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HindustanTimes Sun,20 Apr 2014

Deadline for property tax rebate likely to be extended

Sanjeev Bhalla, Hindustan Times  Jalandhar, September 24, 2013
First Published: 20:33 IST(24/9/2013) | Last Updated: 20:34 IST(24/9/2013)

After failing to notify the property tax ordinance, the local bodies department may have to extend the deadline for 10% rebate on payment of property tax from September 30. It was earlier extended from June 30 to September 30, after amendment of the policy.

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Governor Shivraj Patil had reportedly given his nod to the ordinance, clearing the path for collection of property tax in cities with municipal councils and corporations, but no guidelines have been issued to the civic bodies so far.

“We have not received any notification from the local bodies department. People are coming to us with queries, but we are helpless due to lack of proper guidelines,” a local MC official said.

Once the ordinance is notified, people across the state would have to pay tax on commercial and residential property, including vacant plots, with effect from April 1, 2013.

However, as per the policy draft, religious institutions, cow shelters, care centres for stray animals, charitable institutions, those living below the poverty line and freedom fighters have been kept out of the ambit of the tax.

The cabinet had earlier decided to levy the property tax based on the old annual value system, instead of zone-wise rates as
prescribed in the first draft. People from several quarters, including the state government's alliance partner Bharatiya Janata Party, opposed this proposal.

Due to lack of proper guidelines, the civic body had also halted the survey of the properties. Of the 20 zones falling under Jalandhar MC, survey in only two zones was reportedly completed. “We have identified nearly 35,000 properties in two zones so far. On an estimate, there are more than two lakh properties eligible for the tax. Once we get the guidelines, we will start the next course of action,” an MC official revealed.

Rates
As per the new formula, collector rates would be added to the construction area of the property to arrive at its total value, after deducting 10% as depreciation charges for residential houses.

Thereafter, 5% of the total value of the property would be worked out as the annual value of the property on which the tax is to be levied.

For vacant plots and un-utilised buildings and plots, 0.2% of the annual value will be charged.
Rates for self-occupied houses
Up to 50 sq yards `50 per year
50 to 100 sq yards `150 per year
100 to 500 sq yards 0.5% of the annual value
Above 500 sq yards 1% of the annual value

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