Ludhiana MC collects ₹137 cr property tax, 92,000 fail to settle dues

While the Ludhiana MC has successfully achieved its target for property tax collection, a significant number of residents are yet to fulfil their tax obligations

Several city residents availed the one-time settlement (OTS) scheme introduced by the state government a few months ago, benefiting from a 10% rebate on property tax payments.

Residents submitting their property tax at the Sewa Kendra at MC Zone D office in Ludhiana. (Manish/HT)

While the municipal corporation (MC) has successfully achieved its target for property tax collection, a significant number of residents are yet to fulfil their tax obligations.

Officials have identified 25,075 defaulters who have neglected to pay their property tax for the past year despite receiving reminders from the MC. These defaulters will also be subject to additional penalties and interest charges on their overdue payments.

According to MC superintendent Vivek Verma, the property tax collection for the financial year 2023-2024 has surpassed previous records, with approximately ₹137.5 crore collected compared to ₹122.5 crore in the previous financial year (2022-2023).

The surge in collections shows an increased compliance rate among taxpayers, with the civic body receiving 42,000 more returns than the previous financial year — 3,98,831 for this fiscal 2023-2024 against 3,56,366 from the preceding year. However, despite these achievements, approximately 92,000 residents have failed to settle their property tax dues within the stipulated time frame of the OTS scheme.

Those yet to make the payment now face a 20% penalty along with a 12% interest charge on their outstanding dues.

Civic body officials said they are going to issue the notice to the defaulters so that recovery of the pending dues can be taken as soon as possible.