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Chandigarh Municipal Corporation serves notices to 3,500 property tax defaulters

The Chandigarh Municipal Corporation (MC) has taken a firm stance against property tax defaulters and has commenced the issuance of recovery notices. Approximately 30,000 residential property taxpayers have failed to fulfil their tax obligations within the specified time frame, leading to the MC issuing notices to about 3,500 defaulters. In the coming days, the MC intends to intensify its efforts to address the issue of defaulting taxpayers. The city currently has around 1.42 lakh property tax assessees, including both residential and commercial property owners. Among them, 1.12 lakh properties fall within the property tax net as residential properties.

Officials have highlighted that assessees who failed to pay their taxes by May 31, 2023, now face a 25 percent penalty and an interest rate of 12 percent per annum, calculated from the bill's issuance date to the actual payment date. Furthermore, the MC will also initiate action to recover outstanding amounts under Section 138 of the Municipal Corporation Act. Under the self-assessment scheme outlined in the MC Property Bylaws 2003, property tax calculations for the assessment year 2023–24 have been carried out. Public notifications and individual demands have been raised to procure the outstanding property tax payments from the 1.42 lakh assessees.

During the rebate period, around 81,000 assessees, both commercial and residential, paid their property taxes, resulting in a collection of approximately Rs 44 crore. Of the 30,000 commercial assessors, approximately 16,200 have cleared their dues, amounting to around Rs 27 crore. Additionally, residential taxpayers have contributed around Rs 13 crore. In terms of major entities with pending property dues, Panjab University has paid around Rs 1 crore out of its outstanding amount of approximately Rs 23 crore. The Postgraduate Institute of Medical Education and Research (PGIMER), with outstanding dues of Rs 12 crore, has paid Rs 88 lakh in property tax. The Chandigarh administration has contributed Rs 1.38 crore.

This year, the MC has expanded the property tax net by adding around 6,000 new assessees. Data from various UT departments has been collated to enhance property assessments and include properties that have previously evaded taxation. The MC has enlisted the services of the Indian Post Office to deliver property tax bills to the recipients.

 

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