The Indian Express 17.12.2013
Last date over, MC collects Rs 50 lakh as House Tax
The Municipal Corporation has collected around Rs 50 lakh as House Tax with December 15 being the last date for submission of the tax without imposition of interest. This is much below the estimate of Rs 2 crore that the civic body had expected to get.
It has now been decided that a recommendation of the MC House will be sought for extending the last date for submission. The recommendation will then be sent to the UT Administration for approval.
In fact, the recommendation for extending the date had been made by the House Tax committee at a meeting held last month. But legal opinion was sought on the same. It has now been decided that if the MC House gives its approval, the proposal will be sent to the UT Administration. It is the UT Administrator who is the final authority to give extension as an amendment to the byelaws will have to be made for this purpose.
The notification for imposition of the House Tax was issued in July this year. According to the notification, the residents were required to deposit tax between October 15 and December 15 at the rate of Re 1 per square yard. Thereafter, an interest of 20 per cent is to be imposed. The houses with area less than 5 marla as well as those in villages and colonies will be exempted from paying taxes. Exemption is also given to people from the economically weaker sections.
Mayor Subhash Chawla said that legal opinion on the issue was sought. "It has been recommended that permission for the same be taken from the MC House.
Thereafter, an extension can be given to the residents for depositing tax," he said.
Joint Commissioner, Municipal Corporation, Rajiv Gupta said that permission for extension could only be given after approval from the administration. Till this is received, those depositing tax now will be required to pay 20 per cent interest.
The tax was imposed for fulfilling a condition under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). While property tax on commercial property had already been imposed a few years back, there were repeated reminders from the Centre for imposing tax on residential property as well. The tax is to be paid annually.
There are still ambiguities which the residents have been protesting about. One of the complaints is about the form to be filled out for depositing the tax. Several complaints have been received about the form being complex. Residents of the houses constructed by the Chandigarh Housing Board are protesting that their houses that are less than five marla are not being exempted from taxes. It is being said that when the tax has been imposed based on the area, exemption should be given to them.
The residents of the group housing societies have also expressed their apprehension about the manner in which tax is being calculated. For the societies, complete area of the society, including roads and parks, is being included in the calculation.
As per directions of the administration, the MC is also planning to enhance the rate of tax from next year.
