The Times of India 07.09.2010
Haryana re-introduces house tax
CHANDIGARH: House tax is back in Haryana. Two years after Haryana CM Bhupinder Singh Hooda announced the abolition of house tax, his urban local bodies minister announced the new house tax policy in the assembly on Monday. The new avatar levies a "token tax'' on houses up to 250 square yard and a formula for those above this.
Haryana urban local bodies minister Mahender Pratap Singh said a token amount of Re 1 per square yard per annum for those dwelling in housing units below 250 square yard is the high point of the policy targeting to benefit lakhs of house tax assessees across the state.
Tax for all houses above 250 square yard will be calculated through a formula that will factor in aspects like worth of the land, cost of construction and rental value.
A number of thoughts went into levying of house tax, including the fact that a blanket exemption implies that even the affluent sections were left out of the house tax regime, "which cannot be accepted as a fair principle''. The exemption also meant that a large number of properties were not being recorded in municipal documents.
The minister told the assembly that the house tax will based on self assessment. It will be on unit area method, that is, depending on the built up plot area and the rate of tax will be realistic to ensure voluntary compliance. Assessees will have the option to deposit the tax in any nationalized bank.
"There is heavy penalty for defaulters. This will act as a deterrent. A formula is being worked out for this,'' said urban local bodies secretary Raj Kumar.
"This tax system is based on self assessment. In India, all taxation, like income tax, is self assessed, so why not house tax. And, we hope to cover all houses with token tax scheme,'' added Kumar.
Hooda's claim two years ago of doing away with house tax fell flat after the Union ministry of urban development stopped the matching grants sanctioned under Jawaharlal Nehru Urban Renewal Mission.
Following this, the CM had constituted a three-member committee headed by Singh to suggest measures for re-imposition of house tax in the state.
Haryana urban local bodies minister Mahender Pratap Singh said a token amount of Re 1 per square yard per annum for those dwelling in housing units below 250 square yard is the high point of the policy targeting to benefit lakhs of house tax assessees across the state.
Tax for all houses above 250 square yard will be calculated through a formula that will factor in aspects like worth of the land, cost of construction and rental value.
A number of thoughts went into levying of house tax, including the fact that a blanket exemption implies that even the affluent sections were left out of the house tax regime, "which cannot be accepted as a fair principle''. The exemption also meant that a large number of properties were not being recorded in municipal documents.
The minister told the assembly that the house tax will based on self assessment. It will be on unit area method, that is, depending on the built up plot area and the rate of tax will be realistic to ensure voluntary compliance. Assessees will have the option to deposit the tax in any nationalized bank.
"There is heavy penalty for defaulters. This will act as a deterrent. A formula is being worked out for this,'' said urban local bodies secretary Raj Kumar.
"This tax system is based on self assessment. In India, all taxation, like income tax, is self assessed, so why not house tax. And, we hope to cover all houses with token tax scheme,'' added Kumar.
Hooda's claim two years ago of doing away with house tax fell flat after the Union ministry of urban development stopped the matching grants sanctioned under Jawaharlal Nehru Urban Renewal Mission.
Following this, the CM had constituted a three-member committee headed by Singh to suggest measures for re-imposition of house tax in the state.
