3,500 people in Chandigarh who have not paid their property taxes are given notices.

CHANDIGARH: The Chandigarh Municipal Corporation (MC) has begun sending collection notifications as part of an aggressive enforcement strategy against property tax defaulters.

There are about 30,000 homeowners that owe residential property taxes but have not made their payments by the deadline. According to sources who have been made public, the MC has already notified over 3,500 of these defaulters.

The campaign against defaulters will be intensified in the upcoming days, according to MC officials.

The city has approximately 1.42 lakh property tax assesses, including both business and residential property tax owners. Residential properties make up 1.12 lakh of them and are subject to property taxes.

“If taxes were paid by May 31, 2023, assesses were supposed to get a refund. However, from the date the bill was issued to the date it was actually paid, the defaulters now have to pay a 25% penalty and 12% annual interest, according to officials.

Additionally, a recovery action under Section 138 of the Municipal Corporation Act will also be started.

The MC has determined the property tax for the assessment year 2023–2024 in accordance with MC Property Bylaws 2003, clause 2(ix) under the self-assessment scheme. According to sources, public announcements as well as individual demand letters had been issued to try to collect the 1.42 lakh assesses who owed back property taxes.

About 81,000 assesses, both commercial and residential, paid property taxes, and MC made about Rs 44 crore during the rebate period. Out of the 30,000 business assessors, 16,200 paid almost Rs 27 crore to settle their debts. In addition, residents paid almost Rs 13 crore in taxes.

Panjab University, which has approximately Rs 23 crore in outstanding property debt against its name, paid about Rs 1 crore. PGI, which still owes Rs 12 crore in property tax, paid Rs 88 lakh, and the Chandigarh administration contributed Rs 1.38 crore.

The MC increased the property tax net this year by almost 6,000 new assesses. To more accurately analyze the properties in the city that ought to be subject to property tax collection but have thus far been able to escape it, the MC has compiled data from various UT departments. This time, the municipal organization had contracted Indian Post Office to send the property tax notices.