Tardy BMC to pay Rs 18 crore as property tax refund
Mar 01, 2014
Source : The Times of India

 

MUMBAI: The tardiness of civic officials has resulted in the cash-strapped BMC paying around Rs 18 crore as interest for the delay in refunding the extra money citizens had paid as property tax.

According to the BMC, over 85,000 Mumbaikars are eligible for a total refund of Rs 898 crore because their final property tax bills, which were generated under the new capital value-based system and sent to them in 2013, were lower than their provisional bills, which were computed according to the rateable value system and sent to them since 2010.

"We had made a provision in the rules that the BMC would pay 6.15% interest on the refund amount. But as there was a delay due to administrative reasons, the interest amount has increased to Rs 17.70 crore," said a civic official.

Till date, the BMC has received refund claims worth Rs 300.91 crore; the Rs 17.70 crore interest is only on these claims. Civic officials said the refund would either be sent to the property owner or would be adjusted in the final bill of 2014-15, depending on the amount of refund to be given.

Civic officials said that in 39,000 of 85,000 cases, the property owners will get a refund of less than Rs 1,000 each. And, in most of these 39,000 cases, the property owners will get a refund ranging from Rs 1 to Rs 5.

Earlier, property taxes were calculated by the rateable value system based on the maximum rent amount fetched by a property in a year. Later, the BMC switched to the capital value-based system, which computes tax depending on the present market value of the property.

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