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HDMC begins crackdown on tax evaders in Hubballi-Dharwad twin cities

The Hubballi-Dharwad civic body has begun cracking down on individuals evading taxes on their properties in the twin cities of Hubballi Dharwad in Karnataka. According to sources the number of people failing to pay their dues has been steadily increasing over the years, leaving the civic body is a flurry over how to meet revenue collection goals. 

Apart from evading tax altogether, officials have discovered that many individuals have added floors with permission and / or have constructed houses illegally but continue to pay taxes only for the disclosed sites. The HDMC has identified 82 such wards which have open sites without proper fencing that have now turned into garbage dumps. 

The HDMC began its property tax collection drive earlier this month, with the goal of recovering unpaid taxes and penalties amount of approximately Rs 22 crores. According to a report published in ET Realty, the HDMC is said to have collected Rs 6 crores so far. 

The methodology to be used to ascertain the amount of tax due was disclosed by the civic body to the general public. The civic body, upon inspection will first check documents to see if a house have been constructed legally by tracing the electricity connection and relevant building and construction approvals. From the date ascertained through the inspection, a penalty of 200% will be added and a challan for the same will be generated. Once the challan has been generated, an interest of 2% on the tax amount will be levied until the owners pays his dues.

 

In conclusion, the Hubballi-Dharwad Municipal Corporation has taken a serious step towards collecting unpaid property taxes from individuals who have been evading them for years. By cracking down on tax evaders, the HDMC hopes to recover the unpaid taxes and penalties amounting to approximately Rs 22 crores. The HDMC is determined to ensure that all citizens pay their fair share of taxes and hopes that this move will encourage others to do the same.

 

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