Pune Property Owners Rejoice As Government Approves 40% Discount In Property Tax
Sumit Singh
Pune, 19th April 2023: In a major relief for property owners in Pune, the Maharashtra cabinet has approved a 40 percent discount in property tax for those who use their property for their own residence. The decision was taken at a cabinet meeting held today, following a demand from citizens of Pune for the resumption of the discount.
According to the decision taken in a meeting held in March 2023 by Higher and Technical Education Minister and Guardian Minister Chandrakant Patil and Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis, the government has approved a 15 percent discount instead of 10 percent from the annual rent while charging property tax within Pune Municipal Corporation.
Furthermore, a 40 percent discount will be applicable for determining the annual property taxable amount if the property owner uses the property for his or her own residence. This decision comes after a previous resolution passed in 1970, which levied property tax with a 40 percent discount for those using their property for their own residence.
However, a local audit of Pune Municipal Corporation from 2010 to 2013 revealed that the Act had not been amended, leading to the dissolution of the resolution in 2019. More than 5.4 lakh property owners who benefited from the 40 percent discount have collected around Rs 401 crore, while over 8.82 lakh property holders benefited from the 15 percent deduction.
If the amount of the difference is to be recovered with retrospective effect, it would be a huge burden on the property owners. Therefore, the Pune Municipal Corporation passed a resolution in 2019, requesting that the outstanding amount not be recovered with retrospective effect and that the discount be continued until 2019.
Guardian Minister Patil made a request to Chief Minister Shinde, Deputy Chief Minister Fadnavis, Revenue Minister, and local people’s representatives to solve this problem of the citizens of Pune. Their request was successful, and the final decision was taken in the cabinet meeting held today in Mumbai.
From April 1, 2023, the 15 percent discount will be applicable instead of 10 percent from the annual rent while charging property tax within Pune Municipal Corporation, and a 40 percent discount will be applicable for determining the annual property taxable amount if the property owner uses the property for their own residence.
The government has also decided to waive the recovery of the difference amount until March 31, 2023. Moreover, the excess tax incurred by property owners who paid tax during the period from 2019 to 2023 will be diverted from the next payments.
This decision will provide a significant relief to the property owners in Pune who were struggling with the burden of high property tax rates. The reduction in property tax will help them save a considerable amount of money, which they can use for other essential expenses.
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