Hyderabad Property Tax Evaders served Notices
Property tax defaulters in Hyderabad may soon land in trouble, with the Greater Hyderabad Municipal Corporation (GHMC) officials serving them notices. In this major drive undertaken to curb tax evasion, the GHMC intends to increase its revenue this financial year by way of property tax collections.
According to figures received from GHMC officials, more than two lakh notices have been served to tax defaulters, from the first week of October. As per estimates, the GHMC is targetting Rs.1,000 crore this fiscal (2013-14) through property tax collections. However, as of now, the corporation has made collections of only Rs. 382 crore.
DMCs entrusted with serving notices:
It is a common practice for the corporation to serve notices to defaulters who have not paid their taxes for more than three years. This drive is usually undertaken in December or January. Contrary to the normal practice, the deputy municipal commissioners (DMCs) of different municipal circles have been entrusted with the task of identifying habitual tax evaders and slapping them with notices from this financial year.
This process has already kicked off, with the DMCs of 18 circles already issuing notices to the top tax evaders. According to the chief valuation officer of GHMC, this process is expected to be completed by the end of October. In the case of defaulters who have to pay only the current year’s due, general demand notices would be served.
GHMC plans to collect dues in advance this fiscal:
According to official sources, the GHMC has ordered the printing of about three lakh notices, which would be sent to defaulters in different circles. Among the 13.5 lakh property tax assessments, it has been seen that about six lakh property owners have already paid their tax dues.
As per figures received till October 18th, the tax dues received amounted to Rs.382 crore. This is approximately Rs.50 crore more than the tax collections of the last fiscal. As revealed by a corporation official, about 70% of tax collections usually come during the last three months of the financial year. But attempts are being made to see that for this fiscal, collections are made well in advance.
Special measures to hook perpetual tax evaders:
In a move to take perpetual tax evaders to task, the GHMC has assigned tax wing officials belonging to different circles to report to the headquarters about two cases each involving the highest tax evasion. The headquarters would appoint special advocates to recover tax amounts in cases where there is no response from such tax evaders. The corporation is also planning to invoke the Revenue Recovery Act for long-term evaders. This will enable officials to seize the movable and immovable properties of these offenders in case the tax dues are not paid by this December.
