OTS policy: 10% rebate, interest waiver to property tax defaulters in Ludhiana

Under the OTS policy, those filing their taxes before November 30 will be provided a 10% rebate, along with penalty and interest waiver for the financial year 2020-21

With assembly elections just round the corner, the local bodies department has notified a one-time settlement policy for property tax defaulters.

The notification issued by the local bodies department on Wednesday said that the OTS policy had been launched to provide relief to residents facing financial difficulties during the pandemic. Of the total defaulters, 23,700 people had failed to pay the property tax for 2019-20. (Representative Image/iStock)

Under the policy, those filing their taxes before November 30 will be provided a 10% rebate, along with penalty and interset waiver for the financial year 2020-21. Those who have defaulted between 2013-14 to 2019-20 will be provided a 10% rebate on the accumulated amount, including principal amount, penalty and interest.

92,000 defaulters

Approximately, 92,000 property owners have failed to pay tax since 2013-14, and collectively owe the civic body around ₹14 crore.

The notification issued by the local bodies department on Wednesday said that the scheme had been launched to provide relief to residents facing financial difficulties during the pandemic. Of the total defaulters, 23,700 people had failed to pay the tax for 2019-20.

Those who miss the November deadline, will not be provided the 10% rebate in December, while a 5% penalty will be imposed in January and a 10% penalty will be levied in February and March.

Interest rate to increase to 18% after March 31

Additionally, a 12% annual interest will be charged if the payment is made after December 31 but before March 31. The interest rate will increase to 18% after March 31.

Municipal corporation superintendent (property tax) Vivek Verma said that apart from submitting the pending tax at suvidha kendras situated in all four zonal offices of MC, residents can also submit the tax online at www.mcludhiana.gov.in. “Text messages will also be sent to the residents to apprise them of the OTS policy,” he added.

On August 25, the local bodies department had notified an OTS policy for regularisation of illegal water-sewer connections at nominal rates. Under the policy, no penalty or interest will be charged on the principal amount if the payment of pending user charges is made within three months.

No rebate for non-defaulters

While the state government has provided relief to defaulters, no incentives have been announced for those who pay their taxes on time. While defaulters can avail the 10% rebate on payment of pending tax till November 30, non-defaulters can only avail rebate for the current financial year by September 30.

An official, requesting anonymity, said this will discourage people from filing their tax on time. “The announcement will reduce earning of the fund-starved MC.”

With September 30 being the last date for availing 10% rebate on submission of property tax, the MC has decided to keep its zonal offices and suvidha kendras open on every Saturday and the last Sunday of this month.