Ludhiana school that evaded property tax to tune of ₹57 lakh to now pay ₹1.5 crore

The school authorities submitted ₹18 lakh to the MC after a team visited the school with a warning to seal it.

After the management of Sacred Heart Convent School, Sarabha Nagar, failed to submit pending property tax of ₹1.15 crore, a team of the municipal corporation (MC) went to the school on Monday to issue a warning.

After receiving a complaint that the school management was evading property tax, MC officials looked into the matter and found that the school had filed property tax returns for three years under the self-occupied category. (Getty Images)

The school authorities submitted ₹18 lakh to the MC and sought time till Wednesday to pay the remaining amount.

After receiving a complaint that the school management was evading property tax, MC officials looked into the matter and found that the school had filed property tax returns for three years under the self-occupied category. But the school had been paying rent for the property in crores. The building owner or the tenant has to pay 7.5% of the annual rent as property tax, but in case of schools, 50% exemption is provided by the department.

It was found that the school management has evaded tax amounting to over ₹57 lakh by filing tax return under the wrong category. As per the tax evasion norms, a violator has to pay 100% penalty on the amount evaded. So the MC served a notice for recovery of ₹1.5 crore on the school on January 7.

Zonal commissioner Kulpreet Singh led the team of officials.

The MC team also recovered ₹10 lakh from the management of a bank in Kochar market area, which was caught evading tax recently. The MC officials said the bank authorities have to pay ₹20 lakh as tax, including penalty, and they have assured that pending ₹10 lakh will be paid by March 31.