In the recent development, NMC, i.e. the Nagpur Municipal Corporation set loose the charge on late payment of property tax. Unlike earlier, from now the interest will be applicable after three months of receiving the demand notes.
Abhijit Bangar, the Municipal commissioner sanctioned this proposal of the property tax department that sought relaxation in interest on the same. The Nagpur Municipal Corporation took this decision after the civic body completed the revaluation drive of 5-6 lakh properties under the new property tax system that include rent chart+ready reckoner value.
Till now, NMC [Nagpur Municipal Corporation] issued demand notes to 4.30 lakh properties while the process to issue more notes is going on.
Also, according to the new system, the property tax rate has increased by 2-5 times. Thus the Corporation decided to give some relaxation to the taxpayers. It is also, the duty of the taxpayers to pay property tax on time even if they have not received the demand notes from the Nagpur Municipal Corporation.
The 2% interest is applicable on the property owners on a monthly basis if they fail to pay the property tax of first six months of the financial year i.e. from 1st April to 30th September that too within three months of receiving the demand notes.
The property owners are required to pay the tax of next six months i.e. from 1st October to 31st March on or before December 31.
Also, 2 percent interest is applicable on the property owners with outstanding dues at the end of the financial year. The relaxation in late payment of property tax is applicable for the property owners who didn’t receive demand notes for the last financial year.
In the city, the revaluation drive commenced in November 2015 for which a private company named Cybertech Systems and Software was hired. The company had to complete the revaluation process within 22 months from November but the process is lagging behind the deadline.
This delay led to a loss of revenue to the Nagpur Municipal Corporation as the authority earned nearly Rs. 120 crore in the current financial year. However, the target to earn property tax is Rs. 509 crore.