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UT notifies imposition of house tax

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The Indian Express               05.07.2013

UT notifies imposition of house tax

The Chandigarh Administration on Thursday notified the imposition of house tax in the city. The tax on residential property will be imposed at the rate of Rs 1 per square yard annually. The houses less than 125 square yards in area, of EWS or LIG category and in the villages falling within the limits of the Municipal Corporation will be exempt from paying taxes.

For the flats that have been constructed by co-operative housing societies and the Chandigarh Housing Board, the area of the entire land will be taken as a single unit and thereafter, tax will be divided against the individual flat/ dwelling units etc depending upon their respective area.

The agenda had been approved by the MC in the meeting of the House held in February amidst ruckus in the House. Imposition of house tax is a necessary condition under the Jawaharlal Nehru Urban Renewal Mission (JNNURM). Last month, it received approval from the UT Administrator.

The government lands and buildings shall be exempted from making payment of tax imposed. But the lands and buildings will be liable to make payment of service charges at the rate of Rs 0.75 paise per square yard.

There are a total of 81, 609 houses that will fall under the ambit of the house tax. For all houses of the area of two kanals and above, the tax has been fixed at Rs 1,000 annually. For the others, it will be Rs 1 per sq yard annually. The MC is expected to collect a total of Rs 2.27 crore through imposition of the tax. There are 20,265 marla and kanal houses, 7,979 houses in co-operative societies, 5,597 MIG houses, 10,675 HIG houses, 15,053 houses under the Administration and 22,040 under the central government.

The MC has already been directed by the Administration that the tax be reviewed and a report for the same be submitted in the next three months. The tax would be calculated as per the ratable value of property.