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Pune civic body seals 10 properties, issues impounding notices to 9,000 tax defaulters, Real Estate News, ET RealEstate

Pune civic body seals 10 properties, issues impounding notices to 9,000 tax defaulters, Real Estate News, ET RealEstate
PUNE: The Pune Municipal Corporation (PMC) has sealed 10 commercial and residential properties, which have run up huge property tax dues.

The civic body has also issued notices to the owners of another 9,000 commercial and residential properties asking them to clear their property tax dues immediately from the date of receiving the notice.

Pune accounts for a total 10.5 lakh properties of all types, including commercial, residential, among others. The tax paid by these properties forms a major source of revenue for the civic body. While the process for payment of property tax goes on throughout the year, the number of properties running up huge overdues also keeps changing. Civic officials pointed out that the 9,000 properties that have been served notices have run up dues worth Rs200 crore.

“We are aiming at more recovery of dues, so this special drive has been initiated,” said Vilas Kanade, head of the PMC’s property department.

PMC had introduced a special scheme for diligent tax payers, which helped in increasing the overall revenue of the tax department this year.

The civic body has crossed the mark of Rs1,000 crore on Friday. It is nearly Rs 211 crore more than the corresponding period in the last financial year. This year, the income was Rs1,001.88 crore. PMC data showed that owners of 6,26,072 had paid the tax this year during the corresponding period (April 1 and August 27, 2021).

According to PMC officals, the property tax was charged based on the annual ratable value of the property. The civic body gives two options for ths mode of tax payment, which includes offline as well as online.

Octroi and local body tax were the main sources of income for PMC. But, after their abolition, property tax gives the highest revenue to the civic body. PMC earns around Rs1,400 crore to Rs1,600 crore per year via this tax, an official said.

PMC officials said that the property department had decided to use the arbitration route to resolve the pending legal issues of property tax. The civic body has taken up 10 cases of property tax disputes that are in courts and they will be disposed off through arbitration. PMC hopes to generate Rs35 crore from this move.


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Written by Realty Beat

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