5% tax hike on new properties based ARV
The Pune Municipal Corporation (PMC) has decided on a five per cent hike on property tax on properties that come in the net from April 1, 2021, onwards
The Pune Municipal Corporation (PMC) has decided on a five per cent hike on property tax on properties that come in the net from April 1, 2021, onwards. Therefore, there will be a hike in property tax on new properties and not applicable to those properties that have already been assessed.
The PMC tax department claims it is a regular exercise, carried out after two years, however, the hike in newly assessed properties will be based on the rent calculated by the PMC. Commissioner Vikram Kumar got the go-ahead after the standing committee and the general body meeting had rejected a proposal of an 11 per cent hike in property tax. The rent is calculated based on the ready reckoner rate is the rate of immovable property based on market value and stamp duty charged as per the Maharashtra Stamp Act, 1958. The rate of rent will determine the property tax charge.
An increase in rent, will automatically hike the Annual Rateable Value (ARV).
The Annual Rateable Value (ARV) of any land or building accessible to property tax is the annual rent at which the land or building might reasonably be expected to be let-out from year to year.
