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PCMC to levy penalty on property tax defaulters

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The Times of India            18.10.2010 

PCMC to levy penalty on property tax defaulters

PUNE: Propoerty tax defaulters in the Pimpri-Chinchwad township will have to pay a penalty of two per cent of the tax amount per month from this year, said Shahaji Pawar, assistant commissioner, Pimpri-Chinchwad Municipal Corporation (PCMC). Pawar added that municipal commissioner Ashish Sharma had approved the proposal based on the new government resolution (GR) permitting civic bodies to levy penalty on defaulters.

There are 2.71 lakh properties in the municipal limits. The PCMC property tax department had, for the first time in the 26 years of its existence, crossed the Rs 100 crore collection mark in 2009-10 with the collection of Rs 106 crore. The department auctions properties of defaulters if they fail to clear their outstanding dues. The department had initiated auction against 315 properties and mopped up Rs 2.87 crore from these defaulters in 2009-10.

Pawar said, "Property tax payers have to pay the tax for the first six months of the financial year till September 30 every year. If they fail to pay the tax in this period, they will have to pay a penalty of two per cent of the tax amount from October 1 onwards. The tax for the second half of the financial year has to be paid by December 31, failing which taxpayers will have to pay the penalty from January 1 onwards." He said that for 2010-11, people should pay the tax for the first six months by October-end to avoid payment of penalty.

The state government had issued a GR on June 5, 2010, empowering municipal corporations to charge two per cent penalty per month for delay in payment of tax. The Pune Municipal Corporation decided to implement the GR a month ago. The property tax department starts sending property tax bills for the first six months of the financial year from June, giving three months time to pay the tax. The bills for the second half are sent from October onwards.
Last Updated on Tuesday, 19 October 2010 10:35