GHMC imposes 250% property tax fine in Hyderabad
Hyderabad – With the financial year nearing, civic bodies all over India are coming up with new strategies to collect property tax dues. In this regard, Greater Hyderabad Municipal Corporation (GHMC) has directed that if a building is detected to be out of tax net of the civic body, the owner evading property tax will have to pay property tax for two and a half years with retrospective effect.
For instance, if tax for such a building is assessed as Rs 1 lakh per annum then the owner will have to pay Rs 2.5 lakh (or 250 percent) along with Rs 1 lakh tax assessment for the current year. It is found that there are around 50,000 such buildings in Hyderabad city which have not been covered under the tax net.
It is expected that this new rule will draw crores of rupees of additional property tax collection. For the current financial year, 2012-13, GHMC has generated Rs 532 crore which is far from the set target of Rs 934 crore.
According to the GHMC Act, property tax is imposed from the day the building is identified and tax assessment is made. But now the state has decided to amend certain provisions of the Act in the forthcoming Budget Session of the Assembly. GHMC commissioner has also confirmed this and assured that the amendment would increase property tax payment by building owners.
The GHMC has also decided 100 percent and 50 percent penalty on illegal buildings and floors respectively. The 220B section of the GHMC Act comprises of clause which instructs to impose 25 percent penalty on illegal structures till they are regularised or demolished.
The civic body has also adopted few other ways to ensure collection of property tax dues, like seizing vehicles and other movable properties. Few days back, GHMC officials had seized an Alto car and movable properties of an hospital. According to the sources, the properties of State government and Central government are also in the list of property tax defaulters. The total property tax arrears for the State and Central government amounts Rs 883.98 crore and Rs 11.83 crore respectively.
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Related Civic Issues News:
Penalty increases for illegal constructions in Hyderabad
GHMC adopting new ways to collect property tax from defaulters
Property tax remains same in Hyderabad
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