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Properties under tax net rises from 4.5 lakh to 6.42 lakh, Real Estate News, ET RealEstate

Properties under tax net rises from 4.5 lakh to 6.42 lakh, Real Estate News, ET RealEstate
NAGPUR: The revaluation project of Nagpur Municipal Corporation (NMC), which was started in 2015, has started giving results with the addition of 1.92 lakh more properties under the ambit of tax.

The number of properties under property tax net has increased from 4.5 lakh to 6.42 lakh under the project and around 50,000 open plots are yet to brought under tax ambit. These properties are likely to be auctioned on spot for lack of details.

Before implementation of the revaluation project, around 4.5 lakh properties including structures and open plots were in property tax net. The civic body used to get tax of around Rs 125 crore per annum from these properties.

NMC deputy commissioner Milind Meshram told TOI, “Revaluation of existing properties and assessment of new properties of structures has been completed. Now, 6.42 lakh properties are under the ambit of property tax. Demands of around 5.75 lakh properties have been issued. Process to finalize and issue demand notes of remaining 60,000 properties is going on,” he said.

He furthers said, “Demand from 5.75 lakh properties is around Rs 250 crore which is expected to increase to Rs 275 crore when process of all 6.42 lakh properties will complete,” he said.

The deputy commissioner said, “We are yet to do assessment of around 50,000 open plots. Majority of these plots are situated on city’s outskirts. There are no details about these plots on spot. Also, updated information related to these parcels of land is not available with the Nagpur Improvement Trust (NIT), city survey department and collector office. We have taken decision to do assessment of these properties by naming unidentified owners. We will attach the copy of notice and demand notes on spot for a certain time period. Then, we will attach these plots followed by auction if owners fail to turn up.”

The NMC’s revenue from property tax is likely to increase to Rs 300 crore if these open plots also brought under tax’s ambit.

The number of open plots has increased in revaluation project. Earlier, there were around 50,000 open plots in the ambit of tax which increased to 1.1 lakh.

Another major advantage from the revaluation drive is that all properties are now online and detailed information can be obtained on one click. Due to this system, the NMC has been able to issue annual demand notes in first quarter itself. Earlier, demand notes were issued up to December end. This is helping the NMC in getting revenue in early days of the financial year.

Also, the taxpayers can see details of their properties and tax online.

The number of commercial properties also increased in revaluation project. Tax of commercial properties is higher compared with residential.

The civic body has done revaluation of existing properties and assessment of new properties by engaging two private agencies. One agency was appointed in November 2015 with target of completing the works within five years. The deadline lapsed in November 2020. The civic body held 20% of total payment of the agency and also levying fine for the delay.


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Written by Realty Beat

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