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MCG survey to boost tax collection

The development holds importance as property tax is MCG’s main source of income.

gurgaon Updated: Jun 28, 2019 03:32 IST
HT Correspondent
HT Correspondent
Hindustan Times, Gurugram
Housing,real estate,real estate noida
According to MCG officials, during the survey, taxpayers need to provide a copy of an identification document, such as a voter ID Card, Aadhaar card, driving licence or PAN card, for verifying their identity. (HTPhotos)

The Municipal Corporation of Gurugram (MCG) has decided to survey all types of buildings and empty plots in the city, in a bid to enhance its property tax collection, officials said on Thursday.

According to MCG officials, a consultant has been hired for carrying out the task, which will also see the surveyor updating contact information of property owners in the records. This has been a cause of concern for residents, who have regularly lodged complaints with the civic body over incorrect details in property records that were leading to inflated bills.

The development holds importance as property tax is MCG’s main source of income. Through the survey, the MCG intends to update its records and add more properties under its ambit for increasing its overall collection.

In the 2018-19 fiscal, MCG had collected only ₹196 crore through property tax, against the last fiscal wherein it had collected a record property tax — ₹342.24 crore.

MCG officials estimate that there are six lakh properties in the city but details of only 2.27 lakh properties have been updated in the records. In addition, of the 50,000 vacant plots in the city, the MCG has been able to trace only 39,000 plot owners.

According to MCG officials, during the survey, taxpayers need to provide a copy of an identification document, such as a voter ID Card, Aadhaar card, driving licence or PAN card, for verifying their identity.

Similarly, to establish that the resident is the rightful owner of the building, a copy of the electricity bill needs to be submitted as proof to the surveyor, officials said.

“The surveyor will upload the photograph of these documents on an inbuilt mobile app on the spot and the documents will be returned to the owner right away. The entire survey is being done online. The taxpayer does not need to make any payment to the surveyor, as the entire process is free of cost. In case a surveyor charges a resident, he or she needs to alert the MCG immediately so that proper action can be taken against the surveyor and money can be refunded,” said SS Rohilla, public relation officer (PRO) of the MCG.

MCG officials said that in case a taxpayer does not or is unable to provide the correct information, the surveyor will do a reconnaissance of the property, through land records.

The issue of MCG’s incorrect property tax bills has been a regular problem in the civic body.

In February 2017, industrialists of Udyog Vihar alleged that more than 60% properties in their area were taxed at ₹15 per square feet, a slab levied for malls and shops.

The property tax charge was alleged to be 52 times higher than the actual rate for industries of ₹5 per square yard plot area, they said.

In October 2016, nearly 35,000 residents of New Palam Vihar, who had constructed houses on 100 square yard plots, were sent incorrect property tax bills, inflated by 100 times.

They had been asked to deposit ₹10,000 to the MCG even though the property tax rate for those living on 100 square yard plots is ₹100 per fiscal, as per the MCG’s property tax rules.

First Published: Jun 27, 2019 20:31 IST