Panel suggests special relief in property tax

A 20-per-cent rebate has been recommended for tax payments made for residential properties on 50 sqm plots, owners of LIG flats, flats with maximum covered area up to 75 sqm on or before the date they fall due. This will be in addition to the existing incentive of 30-per-cent rebate on timely payment. Assesses under this clause shall also be allowed relief in clearing arrears, provided they are done before December 31, 1998. Property owners outside this category will be allowed an additional rebate of 10 per cent if they clear their arrears before December 31.

The panel, which had municipal councillors Ved Prakash Gupta, Vijender Kumar and Mahender Yadav as its members, submitted the report to the Property Tax Committee on Friday.

Desai said the panel has also recommended new norms for determining land rates for assessment of properties and putting a figure to the cost of any construction. It has also made recommendations regarding concessional house tax on properties in unauthorised colonies, calculation of current rent and a formula for assessing the properties which are residential but being put to other uses. It has suggested steps to streamline the system of assessment and collection of property taxes, continual rationalisation of the house tax structure.

Ex-servicemen, the subcommittee recommends, ought to get an additional 20-per-cent rebate or Rs 1,000, whichever is less, for paying the tax on time.

An additional rebate of 15 per cent has been recommended for property owners in Group Housing Schemes. If this is formalised, this category of tax-payers would get a rebate up to 35 per cent for paying on time.

There will be no extra land rate in freehold colonies. The land rate of unauthorised (but subsequently regularised) colonies will be 60 per cent of the nearby residential colony. In case of industrial or commercial properties, assessment will be done on the basis of the rate of procurement if the construction is started within three years of purchase or possession.

With regard to prevalent rent, Desai said that the Committee of Assessor constituted for every zone will give the report on prevailing rent and land rent of different areas by October 31, 1998.

As for properties which are occupied by its owners and being put to varied uses, the committee recommended that the rate of tax should be charged at residential rate where non-residential portion is not more than 25 per cent or 100 sq metres, whichever is lower.