Pune: PMC Withdraws 40% Property Tax Discount For Over 2.2 Lakh Properties Found Rented Or With Multiple Houses

Pune, 11th December 2024: In a major decision following a citywide survey by the Pune Municipal Corporation (PMC), the 40% property tax discount has been revoked for 2,20,616 properties that were either rented out or had more than one house. These property owners will now have to pay the full 100% property tax in their upcoming 2024-25 tax bills.

The survey covered the city’s total 14.25 lakh properties, including 34 villages recently merged into the PMC. Of these, 9 lakh properties are residential, while the remaining are commercial or vacant land. Since 1970, the PMC had been offering a 40% tax discount on residential properties occupied by their owners.

However, in 2019, the State Government raised objections to this concession during an audit and instructed the PMC to discontinue it. Consequently, the tax concession was removed for 4,64,222 residential properties, including newly purchased flats. Full property tax collection began for these properties, leading to widespread dissatisfaction among citizens who felt financially burdened.

After persistent complaints and pressure from citizens, the State Government reinstated the 40% discount in 2023. To avail of the concession, homeowners were required to submit a ‘PT-3’ application, along with proof that they personally occupied the property. However, only 95,000 homeowners submitted applications, prompting the PMC to launch a door-to-door campaign involving 350 employees to assist property owners in completing the process.

During site inspections of the 4,63,222 properties in question, it was found that 2,42,006 properties were owner-occupied and qualified for the discount. However, the remaining 2,20,616 properties were confirmed to be either rented or housing multiple families, resulting in the withdrawal of the tax concession for these properties.

Deputy Commissioner of the Property Tax Department, Madhav Jagtap, explained, “After thorough inspections, it became evident that homeowners were residing in only 2,42,006 properties. For the remaining 2,20,616 houses, tenants were living there, and thus, the 40% discount has been revoked. Full tax will be collected from these property owners.”

The reinstated 40% discount, applicable only to owner-occupied homes, has been welcomed by eligible citizens, though the revocation for rented properties highlights the PMC’s strict adherence to tax regulations.