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Taxation

Get ready to pay new property tax

Thursday, 08 August 2013 12:16 administrator
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The Times of India             08.08.2013

Get ready to pay new property tax

KOCHI: As part of implementing the new property tax based on plinth area, the Kochi corporation has started issuing new building numbers and furnishing data of buildings located in its area. The local body is aiming to complete the process by the end of the month.

The corporation said the implementation of the new tax structure was a time consuming one as it includes entering data provided by building owners and verifying it physically.

"The zonal offices are in the process of issuing new building numbers. It is being done with the assistance of bill collectors. Building owners are also given forms to furnish details of buildings owned by them," said Ratnamma Raju, chairperson, tax appeal committee, Kochi corporation.

The tax rates will vary depending on the nature of the building, material used for flooring and amenities such as roads and centralised air conditioners. More than 2.5 lakh buildings will be given new building numbers during the drive.

"We will take strong action against those who provide wrong information after verification. Notices will be issued in such cases and a fine of Rs 50 will be charged from defaulters," said a revenue official with the corporation.

The new tax structure is expected to increase tax collection by at least 25%. In the last financial year, the corporation received nearly Rs 18 core as property tax. While residential buildings will have to shell out 25-60% extra as tax, commercial buildings may have to pay 25-150% more.

 

Infrastructure betterment tax likely in Mumbai

Monday, 05 August 2013 09:23 administrator
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Business Standard           05.08.2013

Infrastructure betterment tax likely in Mumbai

Mumbaikars residing along or in the vicinity of the upcoming transport infrastructure projects might have to pay a betterment tax.

The state-run Mumbai Metropolitan Region Development Authority (MMRDA), planning and nodal agency for the projects, had proposed this new cess last year, to part-finance the capital expenditure. State Chief Minister Prithviraj Chavan is agreeable in principle to this tax, but the government is yet to take a decision.

However, the realty sector is against it, saying the timing would be a problem, with the sector passing through rough weather.

MMRDA estimates Rs 80,000 crore is needed to implement the ongoing and new projects to upgrade the metropolis' transport infrastructure. These projects include the mono rail, metro rail, freeways, sea links, coastal roads and elevated corridors. It had mooted the betterment tax on the lines of a similar levy in Singapore and some European countries.

Its joint director for projects, Dilip Kawathakar, told Business Standard: "MMRDA's proposal is being discussed by the state government. The urban development department will finalise a blueprint for this cess and thereafter it will be launched."

Another official, who did not want to be named, said the government woud decide the rate and who has to pay. "The government will decide if the recovery is to be from new residential, commercial and industrial properties or the existing ones along and in the vicinity of various projects. One possibility is that people who own houses and run commercial establishments along or in the vicinity of infrastructure projects may have to pay 10 per cent of the saleable value of their properties as betterment tax. The tax will be used to further strengthen transport infrastructure in Mumbai." The official noted that property prices along and in the vicinity of various infrastructure projects had surged.

Yomesh Rao, director, Consultants Ltd, said property buyers were already paying a number of taxes and duties. "Property developers will certainly pass on its burden to buyers. This will increase the realty prices,'' he said.

Anand Gupta, secretary, Builders Association of India, said he was appealing to the government to reconsider the proposal. ''The realty industry's problems will further increase. Already, builders and developers are accused of inflating property prices. If the betterment tax is recovered, it will be passed on the buyers and property prices will increase,'' he confirmed.
 

UT hikes collector rates by 50% for residential, commercial properties

Saturday, 03 August 2013 07:30 administrator
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The Indian Express            03.08.2013

UT hikes collector rates by 50% for residential, commercial properties

The sale and purchase of property is all set to get more expensive in the city, as the UT Administration on Friday announced an increase of around 50 per cent in the collector rates for residential as well as commercial property.

However, the collector rate for industrial property has been hiked by around 5 per cent.

Collector rate is the minimum value that the administration fixes for various types and sizes of property. For residential property in urban area, the collector rate has been fixed at Rs 82,368 per sq yard. Last year, this was Rs 54,912. For independent housing board flats as well, the collector rate has been fixed at Rs 82,368 per sq yard.

For the housing board flats on the ground floor, the collector rate has been fixed as Rs 30,888 per sq yard. For the first floor, it would be Rs 24,024 per sq yard; for the second floor, it would be Rs 17,160 per sq yard; and for the third floor, it would be Rs 10,296 per sq yard. The collector rate for cheap houses has been fixed as Rs 51.48 lakh. For Shivalik Enclave, the collector rate is Rs 51,480 per sq yard.

In the villages under the Municipal Corporation, the collector rate for property would be Rs 10,296 per sq yard, while for those under the administration, it would be Rs 6,864 per sq yard. Earlier, it was Rs 6,864 in villages under the Municipal Corporation and Rs 4,576 in villages of the administration.

The collector rates were decided by a committee constituted under the chairmanship of UT Deputy Commissioner Mohd Shayin. "The collector rates of Panchkula and Mohali were analysed before finalising these for Chandigarh. The price of property in Chandigarh is much more than that of the neighbouring towns. We have tried to make the collector rates nearer to the actual value. The sale and purchase of property is not likely to be affected," he said.

The other members of the committee were ADC Tanvi Garg, Assistant Estate Officer Rahul Gupta, Treasury Officer Rajiv Tewari and Tehsildar (Revenue) D S Balouria.

However, for commercial property, the collector rates for booths in Sectors 17, 19, 34, 22 and 35 would be Rs 4.63 lakh per sq yard. For booths in Sectors 7, 8, 9, 26, 16,18, 20 and 21, the collector rate would be Rs 3.70 lakh per sq yard while for those in Sector 23, 24, 32, 37, 38 and other sectors, it would be Rs 2.57 lakh per sq yard.

The collector rate for an SCO in Sector 17 would now be Rs 7.20 lakh per sq yard. For SCOs on Madhya Marg, Sector 34 and Sector 22, it would be Rs 5.14 lakh per sq yard.

Kamaljit Singh Panchhi, the advisor of the Property Dealers Association, feels the new collector rates would have a bad effect on property sale and purchase. "The auctions in Panchkula and Mohali have not yielded good results. The property market is not finding any takers. No one would want to invest in Chandigarh. People would instead buy property in the neighbouring areas where the rates are less," he said.

 
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