Early bird incentive on property tax deferred

Comments 0
SummaryTax payers in the city will have to wait before they can avail early bird incentive scheme on payment of property tax since the Brihanmumbai Municipal Corporation has deferred its implementation to the next financial year

Tax payers in the city will have to wait before they can avail early bird incentive scheme on payment of property tax since the Brihanmumbai Municipal Corporation has deferred its implementation to the next financial year. The scheme, approved by the standing committee in June 2012, allows 2 to 4 per cent rebate to property owners who pay the tax on time.

The scheme was to be implemented in the current financial year. But the BMC has now cited “technical problems” and said property owners will have to wait another year. The civic body had proposed the incentive plan on a trial basis for three years beginning 2013-14. With a year’s delay, it will now be available for two years only. The plan to postpone will be placed before the civic standing committee soon.

“Since the new property tax based on capital-value came into effect this year, there has been a lot of confusion as some rates have risen while others have reduced. We are still streamlining the system and will take some time to put everything in place. Calculation of tax refunds and readjustments is still underway,” said a senior civic official in-charge of the civic assessment and collection department.

The proposal offers a two per cent rebate to those who pay the half-yearly tax amount by May 31, a month ahead of the June 30 deadline. It provides a four per cent rebate to those who pay the full amount by May 31. A three per cent rebate has been proposed for those who pay the full tax amount by June 30.

At present, the civic body is still processing refunds and readjustments for citizens who paid excess tax in arrears over the last three years. This has amounted to roughly Rs 898 crores.

The BMC rolled out the new capital-value system, which came into effect in 2010, this financial year. The system bases taxes for all properties (old and new) on the Ready Reckoner Rate. While earlier the rent value of the property was used to calculate the tax, the new system calculates property tax according to its use, construction, type and age.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...