Greater Hyderabad Municipal Corporation mulls massive property tax waiver
The waiver, if approved by the government, means that over 8 lakh property tax payers, of the total 13.5 lakh, need not pay tax
Nov 07, 2014
Source : The Times of India
Greater Hyderabad Municipal Corporation


HYDERABAD: With an eye on the upcoming Greater Hyderabad Municipal Corporation (GHMC) elections, the standing committee of the civic body has decided to waive property tax up to Rs 4,000 per annum for residential properties, a move that has stunned political parties.

The waiver, if approved by the government, means that over 8 lakh property tax payers, of the total 13.5 lakh, need not pay tax, and the municipal corporation would lose close to Rs 150 crore revenue per year.

The government is likely to issue a GO, while the standing committee members said they were hopeful of getting a clear ance from the state govern ment as it benefits middle class, lower-middle class and the poor in the Greater Hyderabad region. Mayor 7 Mohd Ma jid Hussain, who is the chairman of the standing committee, said the tax waiver would be applicable to only residential properties for the current year (2014-15) and not on arrears. He said though the civic body would have to bear an additional burden, the decision was taken in the interest of the people. The standing committee has directed the GHMC commissioner to prepare proposals for the waiver scheme and bring them before the GHMC general council meeting for another resolution, before the same is sent to the state government for clearance in a week's time.

Standing committee members were of the opinion that the waiver burden of Rs 150 crore can be recovered by bringing unauthorized and unassessed properties into the tax net. The GHMC has already come to the conclusion, after conducting intensive household survey a couple of months ago, that over five to six lakh properties were still to be assessed for taxes. Members reportedly said that some commercial properties have been paying less tax (under-assessed) and their tax needed to be revised.

Analysts say the standing committee has taken this decision in view of the GHMC elections. The tenure of the present council ends in the first week of December and the state government is likely to conduct elections any time next year.

"Now the TRS government has no option but to give consent to the resolution adopted by the GHMC standing committee. The proposal was moved by the mayor, who belongs to MIM, and both MIM and TRS are likely to align and contest the GHMC elections," an analyst said.

Interestingly, GHMC commissioner Somesh Kumar held a review meeting on property tax collection on Thursday and asked officials to improve the corporation's revenue.

Latest Realty News

Saradha property owners in a fix
Nov 07, 2014
KOLKATA: Enforcement Directorate questioning the Shyamal Sen commission's role in Saradha Property Scam
DDA reports 5,484 acres of vacant land
Nov 07, 2014
NEW DELHI: A survey of DDA-administered land, conducted for the first time, has found 5,484 acres of vacant land in the city
Builder held for duping 425 people in Kalyan
Nov 07, 2014
KALYAN: The Mahatma Phule police in Kalyan have arrested a builder who duped more than 425 people and swindle Rs 4.25 crore from them by booking flats in Ambernath
Black money: New trail in tax haven probe leads to cash, property in UK, UAE
Nov 07, 2014
New Delhi: The government’s crackdown on black money parked abroad has received a boost with tax authorities unearthing fresh evidence exposing real estate assets and large amounts of cash routed illegally
12 more builders under scanner
Nov 07, 2014
BHUBANESWAR: A day after arresting two builders Vineet Lalani and Dilip Mohanty in connection with AT Group scam, the CBI zeroed in on at least 12 other builders
Real-estate firm asked to pay over Rs 11 lakhs for deficiency of service
Nov 07, 2014
NEW DELHI: The Delhi state consumer panel has asked real estate firm Omaxe Buildhome Pvt Ltd to pay over Rs 11 lakh to a retired Indian Airlines official
Centre identifies 50 districts to modernise all land records in one year
Nov 07, 2014
NEW DELHI: The Centre has identified 50 districts across the country where state governments will modernise all land records in one year
Gujarat govt begins probe in alleged irregularities in solar park land purchase
Nov 07, 2014
Ahmedabad: The land on which Asia's largest solar park in Charanka, Gujarat has been set up has come under investigation
Govt to issue clarification on FDI in construction
Nov 07, 2014
New Delhi: The government will soon issue some clarifications on the rules for foreign direct investment (FDI) in construction
JLL expects $10 bn of properties to go Reit way
Nov 07, 2014
Bengaluru: Jones Lang LaSalle (JLL) Property Consultants, said as much as $10 billion worth of commercial property can be structured as Real Estate Investment Trust

Latest Realty News Of State

Realty Talk's