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Taxation

Underreporting hits property tax dues

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The Hindu                     05.04.2013

Underreporting hits property tax dues

Staff Reporter

BBMP begins survey of large campuses, apartment complexes, tech parks, malls.

Serious about recovering property tax dues, the Bruhat Bangalore Mahanagara Palike (BBMP) is already surveying large campuses, including apartment complexes, IT companies, business parks, hospitals, malls and clubs.

On survey and verification, the BBMP officials have found huge differences in tax paid under Self Assessment Scheme (SAS) and the actual tax amount, given the built-up area. According to a press release, just from two properties — Golf Links in Challaghatta and Vrindavan Tech Village in Mahadevapura — the tax dues amount to around Rs. 64 crore.

The release said that the built-up area of Golf Link is 76.8 lakh sq ft, while the built-up area declared under SAS was only 49.97 lakh sq ft. The difference is around 26.83 lakh sq ft and each year, the BBMP was being cheated of Rs. 6.84 lakh property tax. The tax dues from this property, including penalty from 2008-09 to 2012-13, adds up to Rs. 34.24 crore.

Similarly, while the built-up area of Vrindavan Tech Village declared under SAS is 11.35 lakh sq ft, on physical verification, the BBMP found that it was actually 28.16 lakh sq ft. The dues from this property amount to Rs. 29.36 crore, including penalties.

BBMP Commissioner Siddaiah said that these tax dues from just the major campuses in the city amount to a whopping Rs. 576 crore. He said that since the SAS tax system was introduced in 2008-09, the BBMP had not taken up verification of property tax of any property in the city. “As per the Karnataka Municipal Corporations Act, the BBMP could have taken up verification of 10 per cent of properties. However, even two or three per cent has not been achieved,” he said.

He also said that the BBMP would sign a memorandum of understanding with the Visvesvaraya Technological University on April 6 (Saturday) to utilise the services of the architecture students for the verification of the high-value properties in the city.

Other than this, the BBMP will also be integrating the Bangalore Electricity Supply Company’s RR numbers and Bangalore Water Supply and Sewerage Board’s water meter numbers with the unique property identity (PID) numbers. Over 16 lakh properties have been captured by the geographical information system and given unique PID.

 

BBMP fails to collect targeted property tax

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The New Indian Express                     04.04.2013

BBMP fails to collect targeted property tax

Bruhat Bangalore Mahanagara Palike (BBMP) has yet again failed to meet its target in property tax collection.

It has collected Rs 1,358 crore as against its own expectation of Rs 2,000 crore (mentioned in the 2012-13 budget).

Since Siddaiah took charge as the Commissioner in January, there have been various ‘novel’ initiatives to collect property tax from the defaulters.

They include beating  of drums, putting up names of the defaulters in public places and publishing their names in media. In spite of these measures, BBMP has been able to collect Rs 1,358 crore, including Rs 214 crore in the last quarter of the financial year (January to March).

In February’s BBMP Council meeting, Siddaiah, in his reply, had said, “As of now, the BBMP has collected Rs 1,200 crore under property tax head. This is not because of our Revenue Department officials’ efforts. But it was the money paid online.

Our officials, including Revenue and Tax Inspectors, have failed to collect the required tax amount.”

As per the civic body’s latest statistics, there are more than 16 lakh properties, of which there are 3.5 lakh property tax defaulters.

According to sources, there are 650 officials working in Revenue department in all the eight zones of the city.

They include Tax, Revenue Inspectors, Assistant Revenue Officers and others. When asked if there was staff crunch, I Ramakanth, Deputy Commissioner (Revenue), BBMP, said,  “We have enough staff. But they are  engaged in non-revenue works throughout the year, including issuing of voters identity cards, socio-economic works and other census,” he said.

On the other hand, Siddaiah said election work gets priority and revenue officials are working on it.

BBMP to track defaulters

This year (2013-14), the cash-strapped BBMP seems to have become more rigid in collecting funds from defaulters.

According to Ramakanth, they are asking property owners to produce Revenue Register (RR) numbers of BWSSB and BESCOM. This will be updated along with the property ID number. He said there are 18 lakh water connection meters in the city. The numbers are more than the properties.

However, one of the reasons could be due to defaulters. It is similar with electricity connection too. He also said that there are many property owners, who are using their properties for commercial purposes, but declared it as residential under Self Assessment Scheme (SAS).

“When we ask then to update RR numbers, we can track defaulters,” he said.

 

VMC fails to meet house tax collection target

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The Times of India                  02.04.2013

VMC fails to meet house tax collection target

VARANASI: Varanasi Municipal Corporation (VMC) was able to collect only Rs 19.12 crore as house tax against a target of Rs 24 crores set for the financial year 2012-2013.

According to Sandeep Srivastava, coordinator, computer centre, out of 1,51,195 houses which were accounted to pay the house tax, only 82,704 paid the same.

VMC also lagged behind in encouraging online payment of taxes as the online mode of payment could only bring a collection of 1.67 lakh from 120 houses in the city.

Despite the fact that number of houses accounted for paying house taxes have increased from 80,085 in 2008 to 1,51,195 in 2013, not even 1 lakh houses are paying house taxes.

Meanwhile, according to general manager, Jal Kal, BK Pandey, Rs 33 crore have been collected as water tax against a target of Rs 36 crore in 2012-2013.

"The relaxation given to pay the taxes without surcharge by April 15 has lowered the target this year otherwise many people would have had paid their taxes by March 31 itself," he informed.
Last Updated on Tuesday, 02 April 2013 12:12
 


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