Thursday, 3 December 2015

PROPERTY TAX


Whether all the properties are subjected to payment of tax ?
Tax is levied on all the buildings, land, structures with land and all the non-agricultural lands within the limits of Corporation, Municipality, Village Panchayat, etc., excepting the properties which are specific ally exempted from tax under Law.

I have rented out my property, can I receive the property tax Bill at a different mailing address at my risk ?
Yes, you can specify a different correspondence address.

What are the modes of payment of tax bill?
You can pay your bill by way of Cash either in the counter of the concerned Office or in the Bank; and alternately you can make payment of by way of cheque or demand draft.  Now-a-days you can pay the tax bill through ‘on line’ mode of payment also.

How a property is assessed to tax if it is used for both residential and non-residential (commercial) purposes ?
The residential portion is charged at residential rates and the commercial portion is charged at commercial rates, as fixed by the Authorities, from time to time.

What are the guidelines for payment of tax by way of cheque ?
Please make sure that the cheque/s you are submitting for payment of tax do contain ‘account payee only’ crossing and the same may be drawn in the name of ‘Commissioner’ of the concerned Municipal Corporation/Nagara Palike. Further, please retain the property tax bill and the receipt issued by the authority for having received the payment, since the same may be required for various purposes, in future.

How tax is levied on long time unused/abandoned property ?
The Municipal authorities are not concerned with as to whether the property is being used or not for a particular period of time.Further, it is also not possible to keep track of occupancy of the property.Therefore, property taxes are levyable till the property is in existence.

What action could be contemplated against buildings constructed in violation of rules ?
When buildings are constructed without obtaining necessary official plan approval from the concerned Municipal authorities and if the buildings are constructed in violation of the directions and the rules made there under, the Officials of the tax department may assess the tax liability and levy penalty to the extent of twice the assessed amount.  Further, till all the violations in the building construction are not rectified/set-right, the penalty imposed will be allowed to continue.  This levy of penal tax will be in addition to the action against such unauthorized building constructions, as per Law prescribed from time to time.    

Whether a tax payer derives any right on the property upon payment of tax under Self Assessment Scheme ?
No. Payment of Property tax does not give a tax payer any ownership right over the property. All the buildings, lands falling within the jurisdiction of City Municipal Corporation/Town Municipal Council/Town Panchayat, Village Panchayat, etc., are liable for tax.  There is no restriction that you should have Khatha, Mutation or Record of Rights etc., to pay the tax and further the Owners of any un-numbered property of the Municipal Corporation also have to pay the property tax and submit the particulars of the building/structure/property.

What type of action will be taken against the tax evaders who do not pay the property tax ?
Under the Self Assessment Scheme, owners of all the buildings, properties and the lands falling within the limits of the Corporation shall voluntarily calculate and pay the tax and thereupon submit the tax paid challan with the property details within 30th June of every year compulsorily.The Owners or the Occupiers not following the said procedure will be issued claim notice under the Karnataka Municipal Corporation Act, 1976 and there after the movable properties of the owners or occupiers not paying the tax and penalty within 30 days thereof will be attached and the tax and penalty payable will be realized by disposing of the said properties in auction and with regard to the remaining tax, necessary application will be filed before the competent Court of Judicial Magistrate and an order will be obtained for levy of twice the penalty of remaining tax payable. 

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