The Hindu 05.11.2013
New property tax norms offer rebate for early birds
Penal interest for the tax payable for the second half year will be levied after December 31
With interest waiver on property tax becoming an annual feature, the government has brought in new regulations that appear to be pre-emptive.
It provides incentives for early payment of property tax for the entire year and penalties after the end of the first quarter and the third quarter.
Till now penal interest is levied after the end of the first half year and for the second half penal interest is not collected until after March 31.
The State government also, in spite of assertions to the contrary, announces waiver of penal interest almost every year.
The new order issued by Commissioner and Director of Municipal Administration in August lays down that for payment of property tax for the entire year by April 30, a 5 per cent rebate will be given.
After June 30, a 2 per cent simple interest will be levied on the tax payable.
The 2 per cent penal interest will also be imposed for payment made after December 31.
During the current financial year penal interest for the tax payable for the second half year will be levied after December 31, a GVMC official said.
Neither the 5 per cent rebate nor interest after June 30 will be applicable for this year.
Tax arrears
With the two-month strike in support of integrated State lasting nearly two months, GVMC has run into huge arrears of property tax payments for the first half year. Against a collectible demand of Rs.88 crore, so far only Rs.37 crore has been realised. With another Rs.88 crore for the second half, the total now comes to Rs.139 crore.
“We have asked the Revenue staff to come out with details of tax collectible rather than later giving one reason or the other for not realising it,” Municipal Commissioner M. V. Satyanarayana told reporters here on Monday. The idea is whatever is the tax quantum declared as collectible should be realised by the end of the year and should not fall short of it. Once the details are available, new demand notices will be issued from November 15, he said.
