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Taxation

Civic body to assess property tax

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The Times of India        08.09.2014 

Civic body to assess property tax

 

CHENNAI: The city corporation will soon take up a massive exercise to assess properties in the extended areas to be able to format a uniform tax. This is the first time the civic body will be framing guidelines since the city expanded in 2011.

It had been found that many people were carrying on commercial activities from residential properties and paying low residential property tax, said a corporation official. "So we will assess the change of property usage as well as check on owners renting out their spaces and revise the tax accordingly," he said. The number of taxpayers increased from 6.5 lakh to 10.82 lakh after the city's expansion but Chennai still has the lowest property tax collections among all metros.

Property tax collection, the corporation's biggest revenue earner, has been hit hard due to late payments as well as by the civic body's failure to revise the tax since 1998. A proposal to levy a penalty of 2% on residents failing to pay within the half-yearly deadline has been pending with the government for more than a year. Despite a law stipulating that tax be revised once every five years, officials say nothing moved forward due to political pressure.

Property tax is collected twice a year, before April 15 and October 15. "There are several habitual defaulters, but at present there are no provisions to fine them," an official said. "Unless we bring in a fine like in the case of electricity or water tax, people will not pay up in time," he said. Shortfalls in property tax collection eventually impacts infrastructure schemes and there is pressure on tax assessors to perform better.

The corporation recently initiated a lot of activities to boost tax collection. On all Saturdays through September, special camps will be held at zonal offices to update property tax records. "There are complaints from residents that online payments on the corporation website aren't getting updated. At the special camps, to be held between 10am and 5.45pm, residents can get payment details updated, lodge grievances, file legal cases and revision petitions and discuss new assessments and other matters," said an official. 

 

Tax Collection on 'Wheels' Launched

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The New Indian Express             06.01.2014

Tax Collection on 'Wheels' Launched

Vellore Corporation has introduced a mobile tax office recently to collect tax from newly constructed buildings.

The bus, which was introduced as a pilot test,  can be used by zonal officers and revenue inspectors to reach spots and levy tax after identifying newly constructed buildings. The officers will measure the buildings and calculate tax, for which a chalan would be issued to the proprietor of the building.

Since its introduction about a week back, tax was levied on nearly 60 new buildings in zone I- Dharapadavedu area, 20 new buildings in zone II - Sathuvachari. The bus would be on rounds till January 8.

“The facility had helped the corporation impose tax on 80 new buildings in Zone I and II so far,” said Town Planning Officer M Kanna.

Officials said if the initiative may become a permanently feature. The Corporation also recently opened the weekend tax collection centres that would function on Saturdays and Sundays, to facilitate officer-goers to pay tax. “There was a favourable response to tax collection centres working during weekends,” Kannan said.

Hitherto, the Corporation could collect only 65 per cent revenue of the total income of local body from all sources, for the year 2012-2013. The officials said the new initiatives would help them achieve a higher percentage in terms of collecting taxes.

 

Company tax to soon be collected in added areas

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The Hindu              26.12.2013

Company tax to soon be collected in added areas

Staff Reporter

The Chennai Corporation is all set to direct companies in added areas in the city to register for payment of company tax.

The Corporation recently invited objections from companies on the inclusion of added areas in the company tax net. Since it did not receive any objection within the stipulated time period, it will now send letters to the companies in a few days and is likely to begin collection after approval from the government is received.

Last year, the civic body identified over 25,000 companies that are not paying company tax. At present, 13,000 companies pay company tax.

The civic body has also instructed revenue department officials to segregate data collected from other government departments to identify companies that fail to pay company tax. The Corporation will also identify employees in these companies who do not currently pay professional tax.

A chunk of companies identified are in Ambattur, Tiruvottiyur, Manali, Madhavaram, Valasaravakkam, Perungudi and Sholinganallur zones.

 


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