Property tax to be imposed in Punjab
Punjab- The Punjab government is all set to impose property tax from April 1, 2013. The government is expecting to collect nearly Rs 1000 crore annually by this exercise.
The state has been divided into eight zones in order to calculate tax ratio on property. The zoning has been done on the basis of prevailing collector rates which will be used to calculate property tax.
On the basis of property value, the percentage of tax imposition will be set. This percentage of tax will differ on different types of property. It will be decided on the basis of the type of property, its structure, cost of land, usage, cost of building and ratio of rent will also be considered.
Tax on residential properties which includes independent houses is one percent. The tax for flat owners would be 0.75 percent. It is one percent if the property is self-occupied and two percent if rented out.
All properties which were constructed during the past 10 years would pay one percent tax, for old properties between 10 to 20 years it is 0.9 percent, for old properties between 20 to 30 years it is 0.8 percent, for old properties between 30 to 40 years it is 0.7 per cent, for old properties between 40 to 50 year it is 0.6 percent and above 50 years it is 0.5 percent.
Few leaders opine that despite lack of facilities like water, power, sewerage, roads and parks, the government is charging very high property tax. Moreover, the weaker section is not being exempted from property tax in towns and cities. Vacant plots and even agricultural land in towns will be taxed.
Institutional properties including government educational institutions and various government offices would get 1.5 percent tax. The tax would be two percent for industrial properties, private hospitals, nursing homes and private educational institutions.
The two star ranking hotels and commercial properties would attract four percent tax while the highest property tax is 10 percent on five star hotels. The tax on shopping malls and three and four star hotel properties would be five percent.
The property tax would be imposed on urban properties only. It is imposed in addition to the house tax which is already imposed in the state.
Only those property owners will get 10 percent early payment rebate if they deposit property tax by June 30 each year. Tax defaulters will have to pay 25 percent of tax payable besides which 15 percent annual interest will also be applicable for the period of delay.
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