Chandigarh: ECI gives nod, pay property tax with 20% rebate till May 31

After the rebate period ends on May 31, assessees will have to pay property tax with 25% penalty and interest at 12% per annum

With the Election Commission of India allowing the Chandigarh municipal corporation to grant rebate on property tax payments for financial year 2024-25, the civic body on Thursday issued a public notice, inviting assessees to pay tax with rebate from April 5.

With the model code of conduct in force ahead of the Lok Sabha elections, the civic body had written to the Election Commission of India for permission to grant rebate on property tax to avoid financial crisis. (Getty Images/iStockphoto)

Like every year, people can pay their property tax with 20% rebate for residential properties and 10% rebate for commercial properties on complete property tax payment for the fiscal till May 31. After the rebate period ends on May 31, a 25% penalty and interest at 12% per annum will be levied on the due tax from the date of issue of the tax bill to the date of actual payment.

With the model code of conduct in force ahead of the Lok Sabha elections, the civic body had written to the Election Commission of India for permission to grant rebate on property tax to avoid financial crisis.

“If the grant is not given....the assessees may delay the payment of property tax up to the last quarter of the financial year, which may not only create financial crunch for MC, but will also result in loss of interest on the advance payments,” civic body officials had written in the letter.

“As per the budget estimates of fiscal year 2024-25, the civic body aims to generate revenue of over ₹85 crore from property tax collection. Every year due to this statutory rebate, more than 80% of the target is achieved up to May 31,” stated the letter.

“The model code of conduct is enforced up to June 6 and the last date of rebate is May 31. Therefore, if this relaxation is not granted, it will create a great financial crisis for MC, apart from denying citizens of statutory schemes,” MC had said.

While giving the nod, ECI said the nod was being given subject to the condition that there will be no mention of this by anyone to gain political mileage.

In the public notice, MC clarified that for those whose garbage charges were not already collected with water bill, these will be collected along with property tax for commercial, industrial, institutional, government lands and buildings for the full financial year.

Also, service charges applicable to government buildings are payable at 75% of due property tax.

In financial year 2023-24 (till March 26), the civic body had collected ₹55.51 crore as property tax against the target of ₹80 crore.

A total of ₹36.86 crore was collected from 18,070 commercial properties and ₹15.37 crore from 69,108 residential properties. The remaining amount was collected through arrears and garbage charges.