Ahmedabad takes decisive step to curb tax evasion with 'no due' certificate mandate

The Ahmedabad Municipal Corporation (AMC) has taken a decisive step to bolster its property tax revenue and tackle the issue of unpaid taxes for open land. In a recent announcement, the AMC revealed that property owners must now obtain a 'no due' certificate from the property tax department prior to being granted building use (BU) permission.

The move comes in response to a prevailing problem where property owners fail to pay property taxes for open plots during the period between the granting of construction permission and the completion of construction. Recognizing the significant revenue loss caused by this issue, the AMC revenue committee, led by chairman Jainik Vakil, has spearheaded the new policy.

Under the revised guidelines, the estate department will now require a 'no dues' certificate from the tax department when granting building use permission. This additional requirement aims to ensure that property owners have settled all outstanding property tax dues before being allowed to use their buildings. By implementing this measure, the AMC hopes to boost its property tax revenue and curb tax evasion effectively.

Vakil highlighted the fact that many property owners have been neglecting their tax obligations, resulting in substantial losses for the AMC. He explained that while the estate department currently seeks a no-objection certificate (NOC) from the tax department during the construction permission process, there is no similar requirement for BU permission once the building is completed. This discrepancy has contributed to tax evasion and a lack of accountability among property owners.

In an effort to address these issues comprehensively, the AMC aims to tackle not only the problem of unpaid taxes but also the duplication of tax entries. Vakil pointed out that the corporation's records often show open land, while tax bills are issued to individual property owners. This discrepancy has added to the confusion and has resulted in inadequate tax collection. The AMC has recognized the need to rectify this situation and ensure that property owners receive accurate tax bills.

The decisions to implement these new policies were made during a joint meeting between the estate and tax departments. Going forward, both departments will work in coordination to enforce the guidelines effectively. The AMC will establish a streamlined process for obtaining 'no dues' certificates, with zonal offices playing a pivotal role in facilitating the coordination efforts.

Furthermore, the AMC intends to extend the requirement for 'no dues' certificates beyond the granting of BU permission. Property owners will also need to present these certificates when demolishing buildings to ensure that all outstanding taxes are settled before any demolition takes place.

The implementation of these stringent measures reflects the AMC's commitment to maximizing revenue generation and cracking down on tax evasion. By reinforcing property tax collection processes and promoting accountability among property owners, the AMC aims to create a fair and transparent system that benefits both the municipal corporation and the residents of Ahmedabad.

Next (Land allotment by JK administration to landless families under PMAY commences)

Ahmedabad takes decisive step to curb tax evasion with 'no due' certificate mandate

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