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Taxation

MCD to penalise illegal farmhouses, hike charges

Tuesday, 15 March 2011 10:58 administrator
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The Hindu        15.03.2011

MCD to penalise illegal farmhouses, hike charges

Staff Reporter

In a bid to rein in illegal farmhouses in the Capital being put to commercial use for weddings and other social functions, the Municipal Corporation of Delhi is planning to levy a penalty on them and also hike the booking charges for such events in registered farmhouses in its area.

A proposal in this regard would also be tabled at the meeting of the MCD Standing Committee on Wednesday following the MCD Commissioner's earlier suggestion to hike the rates.

According to the proposal, farmhouses below 0.5 acre but not exceeding 2.5 acre would be charged Rs.20,000 as against existing rate of Rs.10,000.

For plots above 2.5 acre but not exceeding 5 acre, the charges would be Rs.40, 000 as against the current charge of Rs.20,000. Farmhouses over five acres would have to pay Rs.1 lakh.

In addition, illegal farmhouses would now have to shell out a penalty of 10 times the amount of rent charged on them for bookings by the MCD. Consequently, illegal farmhouses paying a rent of Rs.20,000, Rs.40,000 and Rs.I lakh depending on their area would now have to cough up a penalty of Rs.2 lakh, Rs.4 lakh and Rs.10 lakh respectively.

According to MCD Standing Committee chairman Yogender Chandolia, about 1,500 to 2,000 farmhouses are presently running illegally in about six of the MCD's 12 zones including Central Zone, South Zone and Civil Lines and Narela Zone. “Only about 50 odd farmhouses have registered themselves with the MCD and have been regularised rest all are running illegally due to a nexus involving officials and the police. To check this we have decided to impose a tough penalty on owners of such farmhouses based on their area.”

“The problem in Delhi is that since there are not enough community centres to hold weddings and other such functions so people are forced to host them in farmhouses. Since we cannot stop that from happening by sealing these farmhouses we can at least try to charge them a hefty penalty to increase the MCD's revenue and also encourage their owners to get their farmhouses registered,” he added.

 

‘Revision of guidance value will not push up property tax'

Tuesday, 15 March 2011 08:23 administrator
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The Hindu         15.03.2011

‘Revision of guidance value will not push up property tax'

Special Correspondent

Local bodies can increase property tax only once in three years

The Mysore Grahakara Parishat (MGP) has said that the Government's proposed move to revise the guidance value of properties may not lead to a further increase in property tax.

The Karnataka Commissioner of Stamps and Inspector-General of Registration recently announced that revision of guidance value of properties was under way. According to the commissioner, there was a huge gap between the market value — land value and building value — of properties and the guidance value in major cities, and the Government wanted to set this right.

Speculation

Speculation was rife among citizens and non-governmental organisations that an upward revision in the guidance value would lead to increase in property tax, P.M. Bhat of the MGP said in a press release.

However, he pointed out that a hike in the guidance valueof existing urban properties would not lead to increase in property tax. Citing Section 109A of the Karnataka Municipal Corporations Act, 1976, which deals with revision in property tax, Mr. Bhat said the law clearly stated that the property tax assessed and levied under different provisions shall not be assessed each year but shall be enhanced by 15 per cent once in three years, from the financial year 2005-06.

Mr. Bhat said the local bodies might increase property tax up to 15 per cent once in three years and this might vary for different buildings.

“Property tax goes up by 15 per cent every three years and it cannot be increased further just by increasing the guidance value,” Mr. Bhat.

 

Maharashtra extends deadline for property tax based on capital value

Thursday, 10 March 2011 06:37 administrator
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Business Line     10.03.2011

Maharashtra extends deadline for property tax based on capital value

Our Bureau
Mumbai, March 9:  

Property owners in cities such as Mumbai, Pune, and Aurangabad in Maharashtra will have to pay property tax based on capital value, only from April 1, 2012.

“All major municipal corporations have informed the State government that the process of migrating from Ready Reckoner based valuation of property to capital value has been delayed. These corporations are unable to meet the earlier deadline of April 1, 2011. Therefore, the one-year extension has been given,” said the Chief Minister, Mr Prithviraj Chavan.

Briefing the media after the weekly Cabinet meeting on Wednesday, Mr Chavan said the audit of valuation of properties in the cities would be carried out by Property Tax Board under the chairmanship of a retired Supreme Court or High Court judge.

The Board will identify anomalies in the property tax structure and suggest changes. It will also look at deliberate mistakes done by municipal authorities in computing the taxes.

Women's quota

The Cabinet approved a proposal for 50 per cent reservation for women in local self-government bodies in the State. Once the law gets enacted, half the seats in the municipalities and zilla parishads will have to be reserved for women.

The State Government will introduce a Bill in the forthcoming budget session of the Assembly, giving 50 per cent reservation to women in local government bodies, Mr Chavan said. Mr Chavan said the Cabinet also decided to give transport subsidy to those cooperatives sugar factories in the State which will continue to process excess sugarcane after March 16.

(This article was published in the Business Line print edition dated March 10, 2011)
 
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