Chandigarh MC to increase house, property tax rates by 10% | punjab$chandigarh | Hindustan Times
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Chandigarh MC to increase house, property tax rates by 10%

punjab Updated: Mar 20, 2017 13:15 IST
Hillary Victor
Chandigarh MC

Municipal Corporation, Chandigarh(HT File Photo)

At its House meeting on Monday (March 20), the Chandigarh municipal corporation House is all set to increase rates of house tax and property tax by 10%.

The House will also approve the imposition of property tax in five villages — Hallomajra, Kajehri, Palsora, Maloya and Dadumajra — where the levy is not in force.

The House will also abolish the rebate slabs of 30% and 40% on house tax.

The house tax was first levied in 2013 at the rate of Rs 1 per square yard for houses covering an area of 125 square yards (1,125 square feet or approximately four marlas) and more.

So, the owner of a 1-kanal house (around 500 square yards) is liable to pay around Rs 500 per year. After the hike is approved, the same house owner will pay Rs 550 a year.


In 2014, the administration had proposed to increase the tax from Rs 1 per square yard to Rs 20 per square yard.

However, the MC House did not agree to it and house tax collection couldn’t be carried out in 2014 and 2015.

In July 2015, it was again imposed and houses with an area less than 500 square feet were exempted from tax .

Low-income group (LIG) and EWS flats were exempted from the tax.


There are around 80,000 houses for which the MC has targeted a collection of Rs 10 crore 2016-17 (till December 31, 2016) as house tax, but has collected only Rs 3.6 crore.


The property tax on commercial lands and buildings came into effect from November 22, 2004.

As per provisions of MC by-laws 2003, the assessees (around 23,000 commercial units in the city) are required to deposit the tax under self-assessment scheme for every assessment year starting April 1, with 10% rebate up to May 31.

Property tax on commercial buildings ranges between Rs 3 and Rs 20 per square feet, depending upon zones. There are four zones in the city. The 10% rebate that the MC is offering is also available to those who deposit the tax for 2017-18 before the due date of May 31.

Congress councillor Devinder Singh Babla said the party will oppose the increase in tax and the MC should collect its pending dues before burdening residents .