The 
Indian Express              17.12.2013

Last date over, MC collects Rs 50 lakh as House Tax

The Municipal Corporation has collected around Rs 50 lakh as House
Tax with December 15 being the last date for submission of the tax
without imposition of interest. This is much below the estimate of Rs 2
crore that the civic body had expected to get.

It has now been decided that a recommendation of the MC House
will be sought for extending the last date for submission. The
recommendation will then be sent to the UT Administration for approval.

In fact, the recommendation for extending the date had been made
by the House Tax committee at a meeting held last month. But legal
opinion was sought on the same. It has now been decided that if the MC
House gives its approval, the proposal will be sent to the UT
Administration. It is the UT Administrator who is the final authority to
give extension as an amendment to the byelaws will have to be made for this purpose.

The notification for imposition of the House Tax was issued in
July this year. According to the notification, the residents were
required to deposit tax between October 15 and December 15 at the rate
of Re 1 per square yard. Thereafter, an interest of 20 per cent is to be
imposed. The houses with area less than 5 marla as well as those in
villages and colonies will be exempted from paying taxes. Exemption is
also given to people from the economically weaker sections.

Mayor Subhash Chawla said that legal opinion on the issue was
sought. “It has been recommended that permission for the same be taken
from the MC House.

Thereafter, an extension can be given to the residents for depositing tax,” he said.

Joint Commissioner, Municipal Corporation, Rajiv Gupta said that
permission for extension could only be given after approval from the
administration. Till this is received, those depositing tax now will be
required to pay 20 per cent interest.

The tax was imposed for fulfilling a condition under the Jawaharlal
Nehru National Urban Renewal Mission (JNNURM). While property tax on
commercial property had already been imposed a few years back, there
were repeated reminders from the Centre for imposing tax on residential
property as well. The tax is to be paid annually.

There are still ambiguities which the residents have been
protesting about. One of the complaints is about the form to be filled
out for depositing the tax. Several complaints have been received about
the form being complex. Residents of the houses constructed by the
Chandigarh Housing Board are protesting that their houses that are less
than five marla are not being exempted from taxes. It is being said that
when the tax has been imposed based on the area, exemption should be
given to them.

The residents of the group housing societies have also expressed
their apprehension about the manner in which tax is being calculated.
For the societies, complete area of the society, including roads and parks, is being included in the calculation.

As per directions of the administration, the MC is also planning to enhance the rate of tax from next year.