The Municipal Corporation (MC) of Chandigarh has initiated the process of compiling a list of property tax defaulters in the city. Recovery notices, including penalty and interest amounts, are expected to be issued by the end of this month or the beginning of the next. Defaulters who failed to pay their tax within the stipulated two-month period will be required to pay the tax amount along with a 25% penalty and an additional 12% interest on the total tax amount.
Focus on Defaulters
With the tax branch staff completing the compilation of data from taxpayers who have already paid, the civic body's attention is now shifting to recovering dues from defaulters. Separate lists are being prepared for residential and commercial categories. Sources indicate that the majority of defaulters are in the residential category, though commercial defaulters also constitute a significant number. Additionally, a few cases involve tax recoveries from government agencies, which will be taken up with the respective departments.
Number of Defaulters and Actions
The authority has identified approximately 70,000 to 75,000 tax defaulters across both categories. These individuals or entities took advantage of the rebate period but failed to pay the tax. The department will issue recovery notices, granting sufficient time for payment. Failure to comply will result in stern action. For commercial properties, consequences may include sealing of the property, as per specific clauses in the act. For residential properties, the decision to disconnect water supply was implemented last year to recover tax amounts.
Legal and Settlement Cases
Some property tax recovery cases are under litigation. Sources in the MC reveal that legal proceedings are ongoing to resolve these cases quickly and recover the tax amount. Additionally, there are a few cases of amount settlements where the department is reconciling its records with taxpayer records to settle outstanding dues.
Record Revenue Collection
The MC collected a record revenue of over Rs 61 crore during the two-month rebate period, the highest in its history. Out of this, over Rs 37.21 crore came from commercial properties, while over Rs 23.79 crore was from residential properties. During the rebate period, the MC offered a 20% rebate on residential properties and a 10% rebate on commercial properties. With approximately 1.45 lakh property taxpayers in Chandigarh, a total of 74,142 taxpayers paid their tax during this period.
