Ranchiites! Get set to pay more holding tax
The holding tax in Jharkhand’s state capital is likely to go up by 130% from April 1 this year for concrete houses following a new computation format which takes variables of a property’s distance from the principal main road among other features, an urban development official said.Updated: Feb 26, 2016 16:47 IST
The holding tax in Jharkhand’s state capital is likely to go up by 130% from April 1 this year for concrete houses following a new computation format which takes variables of a property’s distance from the principal main road among other features, an urban development official said on Thursday. The tax will be effective from April 1, 2014.
The holding tax is currently being paid as 43% of the rental value of a house that includes property tax, latrine tax, water tax, health and education cess too. A resident pays Rs 720 annually for a 1000 sq house.
However, the new format will make him pay 2.5% of the rental value of 75% of the carpet area of his house which will vary with the house’s proximity from the principal main roads (40 feet wide or more), main roads (40-20 feet wide) and other roads (20 feet wide or less) and the type of rooftops (concrete, asbestos and traditional) it has, the official said.
The variables will average the tax amount from Rs 544 to Rs 2700 annually for a 1000 sqft house that would amount to 150% increase, officials said.
The Ranchi Municipal Corporation (RMC) had proposed the urban department department to slash the tax rate from 2.5% to 2.0% during a January 20 board meeting. However, the department rejected the suggestion and stated that the changes in the tax rate and date were not in accordance with the law.
RMC assistant executive officer Ram Krishna Kumar said there was no option but to realize the tax as per the new format since the decision to this effect had been taken at the government level.
The house owners in proximity to the main roads will pay anything between Rs 431 and Rs 2156. The tax will be from Rs 319 to Rs 1613 for house near other roads. The RMC is expecting that the annual collection of the corporation will increase from Rs 10 crore to Rs 60-70 crore annually.
Under the new format, city residents will have to submit self-assessment declaration of carpet area of their houses. They would be given three months deadline, which is yet to be decided, for the assessment.
“Residents will soon be given form along with a assessment guideline. RMC’s technicians would also be there for required help and a tollfree number in this regard will also be issued,” Kumar said, adding, the corporation was raising holding tax rates after 23 years. “Had they increased rates every five years, the ultimate burden on residents would have been near about the same,” he said.
First Published: Feb 26, 2016 16:47 IST