The Hindu       04.02.2011

Deadline for property tax amnesty extended

Spelling relief for property owners, the Municipal Corporation of Delhi has decided to extend its amnesty scheme for settlement of property tax under the old Rateable Value (RV) method from January 31 up to February 28 on public demand.

The scheme provides waiver of interest and penalty amount subject to up-to-date payment of property tax. The old system of assessment called RV method continued till March 31, 2004, after which a new system under the Unit Area Method was introduced from April 1, 2004. There are about one lakh cases pending under the old system and need to be settled.

An MCD official said: “The scheme has been extended with a view to benefit property owners or taxpayers within the jurisdiction of the MCD and it would be limited only to settlement of ex-parte assessments under the RV system of assessment.”

Applications for settlement under the scheme would be received along with admitted tax on self-computed basis after publication of public notice and up to February 28. For full details to avail of the benefit of the scheme, tax payers can visit the zonal or headquarter office of the MCD. For any enquiry or clarification, they can contact at telephone nos.29845181, 27573943, 25143373, 23920733, 22501117, 26185460 or log on to MCD's websites www.mcdonline.gov.in and www.mcdpropertytax.in

The Hindu        04.02.2011

GHMC to net more property tax

Making effective use of the available data through Layout Regularisation Scheme (LRS) where 40,000 forms were cleared, GHMC is poised to garner vacant land tax of Rs. 32 crore. A massive hike considering the demand was raised for a measly Rs. 4 crore only.

Information gathered from Building Penalisation Scheme (BPS) applications has also helped get Rs. 32 crore more from properties as tax because of voluntary disclosure of extra space from 28,000 forms. Besides, it is likely to gain a further Rs. 70/80 crore for change in land use from residential to commercial in them.

“We have already gained Rs. 90 crore on demand enhancements and well on course to get at least Rs. 100 crore to Rs. 200 crore more than last year as property tax,” said Additional Commissioner (Finance) S. Harikrishna. Last year, property tax collection was Rs. 494 crore.

It continues to be the main source of income for Municipal Corporation though in the last two years, penal fees from BPS & LRS have also helped get quite sizeable revenue. While final figures are to be confirmed, 85,000 new commercial properties and 25,000 residential properties are in the tax net this year and he expects 25,000 more households can be ‘unearthed'.

The official machinery had used data collected from different departments like CPDCL and other tax sources to raise new revenues. From the existing tax payers, 5.85 lakh households of the 11.5 lakh and close to one lakh commercial properties of the 1.5 lakh have not paid their respective tax dues still.

Overall demand expectation is a Rs. 320 crore and Rs. 231 crore, respectively, including arrears and interest payments. But, expectation is that the last two months are major payment time as last year Rs. 115 crore was collected in March alone!

From the Governments side, the State is expected to chip in with at least Rs. 20 crore of the demand of Rs. 180 crore.

And for a change, there could be substantial revenue from Central government properties.

Mr. Harikrishna said as per the guidelines issued by the Centre few months ago, service charges can be collected which can be between one-third or two-third of the property tax. But, it can be done only after the local body concerned signs agreements with different departments.