Owners of illegal buildings pay double property tax to PCMC

The Pune civic body will tap into huge funds as it orders illegal structures in the Pimpri-Chinchwad Municipal Corporation (PCMC) limits to pay double property tax. With such a move, the civic body intends to net Rs 42 crore revenue from the structures that cropped up after 2008.

Pimpri-Chinchwad Municipal Corporation will soon bring to pass the issuing of tax bills for 2012-13 and 2013-14. The move has been proposed in regard to a state government decision that allows the PCMC to roll up additional property tax from all the owners of unauthorized buildings and constructions.

How to calculate PCMC Property Tax?

Property tax in PCMC has to be paid by all persons/institutions who own/possess land/buildings within the limits of PCMC. Property tax is applicable for all properties/open lands within the limits of PCMC. It is assessed on the basis of built-up area of the property/building.

Property tax is calculated based on the following factors:

1. Built-up area of the property

2. The type of property: whether it is residential, non-residential,  mixed, miscellaneous, Industrial or open land

3. Annual ratable value of the property in per square feet, in the area where the property is located.

4. The type of construction of the property: whether it is an RCC construction, Simple construction or Shed

What are the documents required for change of ownership in PCMC Property tax?

The following documents are required for transfer of ownership of PCMC property tax:

1. Proof of ownership (Sale Deed/ Index II)

2. No objection certificate given by the last/original owner or from the C0-operative Housing Society

3. Property tax payment receipt for the entire financial year

4. Transfer fee – one per cent of the taxable amount

5. Abstract of property card issued by the Corporation

What are the schemes for availing discount on Property tax?

Discount on property tax (only on Municipal tax) can be availed for those who pay the current year’s property tax, including any outstanding dues,  by June 30th:

1. For Residential property owned and used by Freedom fighters and Ex-servicemen: 50 per cent discount on Municipal tax

2. For residential property solely owned by women and used for residential purposes: 50 per cent discount on Municipal tax

3. For residential property specifically registered as residential building: 10 per cent discount on Municipal tax

4. For non-residential/industrial property/land etc: five per cent discount on Municipal tax.

However, one can avail discount on property tax only under one of these schemes. Discount on property tax under the above schemes can be availed if tax is paid in advance by June 30th.

Besides, discount on property tax is also offered to Green buildings. Those buildings having Occupancy certificate along with the final Green building certificate issued by the building permission department are eligible for disount in municipal tax as follows:

• 3 Star Rating – 5 per cent discount

• 4 Star Rating – 8 per cent discount

• 5 Star Rating – 10 per cent discount

The details of the star rating are available on the Corporation’s website.

How do you pay property tax for PCMC online?

Online property tax payment for PCMC is available on the Municipal Corporation’s website:  www.pcmcindia.gov.in> e services> Property & Water Tax link

The steps for online payment of the property tax are given below:

1. Go to the Corporation’s website:  www.pcmcindia.gov.in -> e-Services -> Click on the Property tax & water tax link

2. Click on the ‘Property bill’ link

3. Enter the property number and click on the ‘Show’ button

4. Check the details of your property and then click on ‘Make Payment’

Online payment can be made through debit card or credit card of most major banks in India, nationalized and private. You can make your payment through the online payment gateway of 55 such banks.

The list of credit cards that are accepted are:

1.  Easy Click-by American Express       2. Visa             3. Master Card

4.  American Express Card               5. Diners Club Card

What are the PCMC property rates?

To know the property tax rates that are applicable to you, follow the steps given below:

1. Go to the link: http://www.pcmcindia.gov.in/ptax_forms.php

2. Under ‘Forms and Information about Property Tax’, click on the link, ‘Rates applicable (per Sq-Ft) for property Tax for the year 2013-14’

3. To get the rate details, click on the link: ‘Rate details for year 2013-14’

What are the PCMC property rules?

There are various rules that govern the payment of property tax of PCMC. They are as follows:

• The last date of payment of property tax for the first half year, from April 1st to September 30th is 30th September, while for the second half year, between October 1st to March 31st, it is December 31st.

• The penalty for non-payment of property tax for the first half year is two per cent from October 1st, and for the second half year from January 1st, which is charged on the outstanding amount.

• The documents required for assessment of property tax include those establishing ownership like Sale deed/ Index II / 7-12 extract / City survey extract. Besides, documents issued by the building permission department like Building Permission Certificate, Building Completion Certificate and the Approved Plan are also required. The property owner should communicate with the Corporation within 15 days of completion of construction for assessment of property tax, for which no fees is charged. In case no objection is raised, it takes 21 days for property tax assessment; if any objection is raised, it takes 45 days.

• For grievances related to property tax assessment, you should lodge a complaint with the concerned ward officer.

• Additional construction of the property is assessed at prevalent rates for the current year.

• In case permission is obtained for change in usage of property from residential to non-residential, property is assessed at prevailing rates as non-residential property.

Constructions affected

The state government has empowered the PCMC to charge fine for the financial year 2012-13 for the twin towns Pimpri-Chinchwad. However, property analysts have a different take on it and term this move as a ‘wrong step’.

With the functioning of such an order, around 43,392 constructions in Pimpri and Chinchwad will take a beating. After such an order, owner of illegal structures will be duty-bound to remit 3 times the property tax of their property for the rest of time span, so long as the construction is illegal.

According to PCMC officials of the tax department, the state government has given strict directives that require to be adhered. According to the directives, as long as an illegal construction is not regularized the concerned owner will be bound to pay double property tax every year.

Properties liable to pay

In tune with market reports, around 43,392 properties in the Pimpri-Chinchwad region are subjected to double penalty tax. Last year, the revenue generated from property tax by PCMC stood at Rs 259 crore whereas the total pending amount from property owners was Rs 250 crore. PCMC officials corroborate that nearly Rs 42 crore will be collected via penalties this financial year.

Civic authorities will also collect additional tax from those illegal structures in Pimpri-Chinchwad region which avail different amenities (like roads, electricity, water and drainage) of the state government. However, the civic body made it crystal-clear that paying of property taxes by such illegal construction does not change the fact that the buildings are unauthorized.