Chandigarh administration implements property tax in remaining five villageshttps://indianexpress.com/article/cities/chandigarh/chandigarh-administration-implements-property-tax-in-remaining-five-villages-5430463/

Chandigarh administration implements property tax in remaining five villages

The commercial properties in all the sectors of Chandigarh are divided into different zones and the tax is calculated according to the built-up area with the rate as per the zone.

Chandigarh administration implements property tax in remaining five villages
The UT Administration had several times asked the MC to levy the property tax in these villages. (Representational image)

The Chandigarh administration has issued a notification of implementing property tax in the remaining five villages. The Chandigarh Municipal Corporation had rejected on several occasions the agenda item of bringing these five villages within the purview of property tax. The tax would be imposed on all commercial, industrial and institutional lands and buildings located in Hallomajra, Kajheri, Palsora, Maloya and Dadumajra villages.

For basement, the owner of the commercial property will be charged Rs 3.30 per square feet while for ground floor, he will be charged Rs 6.60 per square feet. For first floor, the charges would be Rs 5.50 per square feet, for second floor Rs 4.40 per square feet and Rs 3.30 per square feet for third floor. All the owners, occupants of all commercial properties, have been asked to deposit the commercial property tax under self-assessment scheme by December 31 this year.

The Chandigarh Municipal Corporation in a notice on Thursday stated that people would be given a rebate of 10 per cent if they deposited it by the said date. “After December 31, 2018, the assesses will be charged 25 per cent extra over and above the prescribed rate plus 12 per cent interest per annum,” the notice by MC said.

The UT Administration had several times asked the MC to levy the property tax in these villages. However, the House rejected it as councillors representing these villages would say that basic amenities are not at a par with other areas of Chandigarh.

The local audits department of MC had flagged the issue of revenue loss to the civic body due to non-inclusion of these villages in the ambit of property tax. It had stated that a loss of Rs 3.60 crore had been caused to the Chandigarh Municipal Corporation for not bringing the remaining five villages within the purview of commercial tax.
In a communication to the MC, it was stated that every year, the Municipal Corporation could earn a revenue of Rs 30 lakh.

“During scrutiny of records pertaining to property tax branch, Chandigarh, it has been observed that despite a lapse of 12 years, these villages have still been kept out of the purview of property tax, thereby resulting in loss of revenue on account of property tax amounting to Rs 360 lakh while Municipal Corporation is reeling under funds crunch,” the audit department had conveyed to the MC.

The survey of the villages was also conducted by the civic body which had found that there are 788 commercial units at Hallomajra, 649 units at Kajheri, 293 units at Palsora, 556 units at Maloya and 576 at Dadumajra.

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The commercial properties in all the sectors of Chandigarh are divided into different zones and the tax is calculated according to the built-up area with the rate as per the zone. There are around 23,000 commercial units within the MC limits. The assesses are liable to pay property tax under the self-assessment scheme on the prescribed proforma.