Nagpur civic authority cuts 200% extra tax on rented properties

NMC-NagpurBy Accommodation Times Bureau


On Thursday, Mayor Nanda Jichkar announced during a conference that, Nagpur Municipal Corporation (NMC) has decided not to levy any extra tax for rented properties. The relief has been given for both residential and commercial properties. Until now, rented properties were taxed at thrice the normal rate.

A public interest litigation (PIL) had been filed in Nagpur bench of the Bombay High Court challenging the extra levy on the grounds that NMC did not provide any extra services to rented properties. The 200 percent difference between rented and owner-occupied or vacant properties had caused much heartburn among property owners.

Many citizens, who had leased their properties, asked their tenants to tell NMC staffers that they were relatives, to show on paper that property was not rented, for avoiding paying extra tax.

The decision has been taken to take away the discretionary powers of tax officials; said the Municipal commissioner Ashwin Mudgal.

“Till now, while calculating property tax we used to leave aside 10% area for bathrooms, toilets, veranda, staircase and balconies. Now, this figure has been increased to 15%,” Jichkar said.

Jichkar also announced several other concessions for property taxpayers.

NMC has decided to increase the property area to 200 square metres. At present, 10% surcharge is levied on properties having an area more than 150 square metres. Although, it needs to take the permission of urban development department (UDD) for offering this concession for property taxpayers.

NMC has issued demand notes to only 1.53 lakh property owners from a total of 6 lakh owners. Due to revision in tax, NMC has not been able to distribute demand notes to most property owners.

NMC gives 4% concession to people paying their property tax before November 30. This year, the date of this concession has been extended until March 31, 2018, due to the delay.


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