The Pune Municipal Corporation (PMC) has decided to auction the properties of owners who have been avoiding paying their property tax arrears. In the first phase beginning in October 2023, PMC will auction 200 sealed properties out of a total of 1,618 properties. This decision was taken during the PMC’s meeting on September 25, 2023. The civic body will appoint additional manpower in its property tax department for his purpose.
Property tax is a crucial source of revenue for the PMC. The civic body collected more than Rs 2,000 crore in property tax in FY23. The corporation has managed to collect Rs 2,318 crore in FY24 so far, but it is behind its target for this year. In a bid to bolster its revenue stream, the civic body has decided to auction properties that failed to clear the arrears despite several warnings.
A penalty of 2% per month is levied by the PMC on the non-payment of property tax. A notice is sent to those who fail to pay tax after the financial year ends. The civic body confiscates the assets of individuals who consistently default on property tax for multiple years. For those who continue to default on their tax payments, the PMC will auction their properties to recover the outstanding arrears. Once the arrears have been settled, any surplus proceeds from the auctions will go to the respective property owners.
To date, the PMC has sealed 1,618 properties with the outstanding tax arrears of over Rs 96.27 crore. There are an additional 30,000 commercial properties with outstanding property taxes that will be identified and sealed. Outstanding dues to the tune of over Rs 8,000 crore need to be recovered from property owners. This includes several categories of tax defaulters such as industries, commercial complexes, IT parks and hospitals, besides mobile tower owners. There were outstanding dues amounting to Rs 148.52 crore from 2,512 properties in FY23. As many as 1,591 property owners have not paid tax dues of around Rs 95.18 crore in FY24 so far.
Housing News Desk is the news desk of leading online real estate portal, Housing.com. Housing News Desk focuses on a variety of topics such as real estate laws, taxes, current news, property trends, home loans, rentals, décor, green homes, home improvement, etc. The main objective of the news desk, is to cover the real estate sector from the perspective of providing information that is useful to the end-user.
Facebook: https://www.facebook.com/housing.com/
Twitter: https://twitter.com/Housing
Email: [email protected]
Related Posts
NGT issues interim stay on Pune Metro construction.
Cities should raise funds from local markets: Venkaiah Naidu.
Greater Hyderabad Municipal Corporation raises Rs 100 crores via municipal bonds.
PMC reduces width of Katraj-Kondhwa road from 84 metres to 50 metres.
Pune Property Tax: Step-by-Step Process To Pay Tax Online.
How to get 40% rebate on PMC property tax?.
