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Tax Unpaid, 3.8l Property Owners Lose Rebate, Face Interest, Real Estate News, Realty Beat

Tax Unpaid, 3.8l Property Owners Lose Rebate, Face Interest, Real Estate News, ET RealEstate
NAGPUR: Despite rebate of 5-10% and timely distribution of demand notes, owners of 3.83 lakh properties did not pay property tax till December 31, which was the last date for the rebate scheme. Now, they have not only also lost opportunity to benefit from rebate but are also liable for penal interest of 2% per month.

In the first nine months of this financial year, the cash-strapped civic body has managed to collect only 150 crore as property tax out of total demand of 650 crore, including 250 crore of current fiscal and remaining Rs400 crore is arrears of previous financial years.

As per data available from the NMC Property Tax Department, demand note was issued to around 6.5 lakh properties between April 1 and October 30.

The NMC had collected 144 crore from April 1, 2020, to December 31, 2020, in the last financial year (2020-21).

To encourage early payment this financial year, the NMC had started distribution of demand notes from April 2021 itself.

Also, municipal commissioner Radhakrishnan B had implemented rebate of 10% for payment of tax between April 1 to June 30. Only 51,000 taxpayers paid up by June 30. Then, rebate of 5% was provided till December 31. Between July 1 and December 31, 1,54,063 took benefit of rebate and paid tax.

Along with arrears holders, 2.67 lakh property owners paid the tax between April 1 and December 31. As per NMC norms, property taxpayers are liable for penal interest of 2% per month from January 1 if they have not paid tax till December 31.

The NMC property tax department has been given target to recover 332 crore in the current fiscal.

NMC sources told TOI recovery is likely to be hit with BJP-led ruling party’s announcement for tax exemption to properties up to 500 sq ft. “It is a long process. Property tax consultative committee has passed a resolution and recommended exemption. It needs to be approved by standing committee followed by general body and state government. But the taxpayers have already started inquiring and few are refusing to pay the tax,” sources said.

CM Uddhav Thackeray had announced the benefit for only Mumbai. In NMC, BJP is demanding the same for the city. The municipal corporation elections are scheduled to be held soon.

Out of the total 6.5 lakh residential properties, around 2.5 lakh are likely to fall under 500 sq ft criteria causing financial loss of Rs32 crore to NMC.

Deputy commissioner Milind Meshram said, “Process to attach the properties of defaulters followed by auction has started.”


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