The Indian Express             24.09.2013

MC: Pay property tax from September 27 onwards

After much dilly-dallying, get ready to pay property tax from September 27 onwards.

With the ordinance for the amendment to the Punjab Municipal Act, 1911, and the Punjab Municipal Corporation Act, 1976, getting a nod from the Punjab Governor, the property tax is all set to make people pay for living in their own homes.

Not only the construction on a property will add to the tax but also the people who pay tax after the time prescribed by the MC will have to witness auction of their properties.

As per rules formed by the government, everybody owning either a residential home, commercial property or even a vacant plot has to pay property tax because they own a property.

However, residents feel that it is nothing less than dictatorship. Pradip Mehta, a resident of Model Town, said, "What is the meaning of this tax after paying water and sewerage bills? Let MC do what they want but I will not pay."

"Is it anything less than dictatorship to pay for owing a property? Why only tax from property owners?" questioned Ramesh Singal from Aggar Nagar.

HDFC teams

AT a crucial meeting of MC, headed by MC Commissioner Rahul Tewari and Mayor Harcharan Singh Gohalwaria, additional commissioners, zonal commissioners, superintendents and other staff members who will be involved in collection of property tax from September 27 onwards were given strict orders to recover maximum tax by October 31.

While the MC has set a target of collecting at least Rs 200 crore by the end of this financial year, it has roped in teams of HDFC Bank which will help MC in recovering the tax and spreading awareness. Also, tax money will be kept in HDFC accounts. "HDFC teams are our partners in this mission and they will be visiting from block to block to help us recover tax," Mayor Gohalwaria told Ludhiana Newsline.

Self-assessment

The formula adopted by the government is of self-assessment. According to this, people themselves will fill out proformas which are expected to be available at MC offices, suvidha kenders, online and at sub-zonal offices. They will be required to write details like area of their property and construction done, and submit forms along with tax as per self-assessment.

"Till October 31, 10% rebate will be given to encourage people to pay tax. Then till December this year, there will be no rebate and in quarter following December, a penalty of 25% will be imposed on those who will not pay tax and then finally last resort will be auctioning the property," said Gohalwaria, adding that "tax is very citizen-friendly and no one should have a problem in paying such nominal amount".

Wrong information

Asked how MC will come to know if residents file wrong information, Gohalwaria did not have a clear view and said that a "detailed copy of rules is yet to be received from government". He added that "MC may inspect and cross- verify forms of residents randomly, not all, and then penalty might be imposed".

How to calculate?

Houses of up to 50 square yards = Rs 50 per year

Houses between 50 and 100 sq = Rs 150

For houses with an area of 500 square yards or more, payment is to be calculated at a rate of one per cent of the annual value. For vacant plots and unutilised buildings and plots, tax will be 0.2 per cent of the annual value.

Total value will be calculated by adding collector rate to the construction cost (Rs 500 per square foot on covered area) to arrive at its total value and then deducting 10 per cent as depreciation charges for residential houses. Thereafter, five per cent of the total value of the property will be taken as the annual value of the property on which the tax will be calculated.

For houses between 100 and 500 square yards, the tax will be charged at a rate of 0.5 per cent of the annual value.

The Indian Express             24.09.2013

PCMC acts tough: 400 buildings razed, 2,400 FIRs filed

In contrast to Mahesh Pathak-led PMC, which appears to have slowed down its drive against illegal construction, the Shrikar Pardeshi-led PCMC continues to act tough. In the last one year, it has razed 400 illegal structures across the industrial town. The civic body has also filed FIRs against a 2,400 individuals who had set up the structures. Civic officials said this is the highest number of FIRs in connection with illegal structures from any civic body in the state.

PCMC Commissioner Shrikar Pardeshi said the drive has picked up. "If you compare the figures on structures of demolished during early months of the drive and later months, you will notice the difference. The drive has not slowed down in any way," he said.

He said the drive happens whenever the police bandobast is available. "If the police cover is not there, the drive does not take place. For example, during certain occasions like Ganesh festival, the entire force is preoccupied with security arrangements. We do not get police cover and so the drive does not take place," he said. Civic officials said PCMC avoids acting against illegal structures during festivities.

Even since PCMC under his leadership has acted against illegal structures, Pardeshi has received seven threats to his life. Also the entire political class has agitated against his drive. Three MLAs and two MPs made an all-out attempt to get the government to stop the drive.

Three MLAs, Laxman Jagtap, Vilas Lande and Anna Bansode, all from NCP, staged protests in the state Assembly drawing media attention. "But even this failed to impress the Chief Minister Prithviraj Chavan who has stood by the PCMC chief," civic officials said.

Though his writ runs wide and deep in PCMC, Deputy Chief Minister Ajit Pawar has not been able to stop Pardeshi administration's drive. The PCMC chief is banking on the high court directive that ordered the civic body act against illegal constructions.

"Whatever we are doing is as per the high court directive. Till the state government announces a policy decision, we will go ahead with the demolitions," he said. Civic activist D G Baliga said the PCMC drive has paid rich dividends.

"Today citizens and builders are wary of setting up illegal constructions. You will not find one illegal construction coming up in Pimpri-Chinchwad. Even officials are wary as they know the civic chief will file FIR against them as per the provision in the law," he said.