E-Paper
Property tax evasion: Banks on Ludhiana MC’s radar, rent deeds being scrutinised
The owners of two properties rented out to banks were caught for tax evasion
The municipal corporation (MC) has started scrutinising rent deeds of all banks in the city after the owners of two properties rented out to banks were caught for tax evasion.
A penalty of Rs 8 lakh was imposed on the violators and a 100% penalty on the amount evaded was also imposed.
Officials said that managements of banks or property owners have to pay 7.5% of the annual rent as property tax. But, it is suspected that a large numbers of them are evading tax by quoting lesser annual rent received.
The civic body officials said there are over 500 banks in the city which are renting properties. The property tax returns and rent deeds are being scrutinised to find any anomalies in the tax paid and amount due. MC has already received copies of around 400 deeds.
Superintendent of property tax, Vivek Verma, said,”As per directions issued by the higher authorities, the rent deeds and property tax returns are being scrutinised. A 100% penalty on evaded amount will be imposed on violators. If the owners or bank managements have failed to pay the tax, a 20% penalty and 18% interest per annum will be recovered along with the pending amount.”
Pay property tax by Dec 31 or face penalty
MC officials said December 31 is the last date to pay property tax for the year 2020-21 without facing any penalty. There are around 2.7 lakh properties in the city and over 1 lakh owners are yet to file the tax return.
If the owners fail to pay by the end of the month, a penalty of 10% will be imposed.
The officials said that this year, a large number of residents have not submitted the tax due to financial crisis amid the pandemic. The managements of some malls have also not paid the tax because of which MC has not been able to meet the recovery targets this year.
“MC is sending text messages to residents and also calling them to ask them submit pending tax to avoid a penalty. Reminder notices have also been served. The residents will have to pay a 10% penalty after December 31, and if they fail to pay by March 31, a 20% penalty along with 18% annual interest on the pending amount will be imposed,” Verma said.
