All those people who own properties in Chandigarh may now take a sigh of relief as the UT Municipal Corporation (MC) has now announced to grant 20 percent rebate on the property tax. Well, the exemption of 20 percent can only be availed by the Chandigarhians if they will abide by the conditions of the MC that comes along with this announcement.
The Municipal Corporation has given this good news to all the property owners of Chandigarh for both commercial and residential only if they submit the tax, timely within the stipulated period of two months. The exemption on property tax will begin with effect from April 1, 2018 while the submission of property tax can be done uptil May 30, 2018.
Rebate & penalty percentage levied by Chandigarh MC on property tax
However, this decision was taken by the Chandigarh MC after collecting a whopping tax on property of Rs 42 crores in the financial year 2017-2018. The residential property owners will receive 20% rebate on the total tax amount as per the value respective property, while the commercial property tax payers will receive a rebate of 10 percent on the total taxable amount. In both the cases, the tax payers will have to give the tax to the Chandigarh MC within two months time to avail the privilege.
If property tax not submitted on time then the property owners will be penalized with 25 percent of their total taxable amount plus 12 percent interest on it.
Details about rise in number of property tax payers in Chandigarh
The only reason behind setting up the new rebate and penalty percentage by the tax branch of MC, Chandigarh is to collect optimum amount of tax, initially and the department can avoid the notices to the tax payers in the city. Citing the rise in the number of tax payers in Chandigarh, the department also believes to witness a growth in the total amount of tax that will be collected for the FY 2017-2018.
In the last fiscal yeas 2016-17, there were about 24000 residential tax payers in Chandigarh while 13000 were the commercial tax payer. This year the numbers have increased to 41,000 for residential and 15,000 for the commercial tax payers.