The cloud over the new property tax system can subside now.
Facing tough resistance from the people on the switch over to capital value system based on the market value of a property to calculate the property tax; BMC has decided to introduce self assessment for the citizens.
The civic body will develop software where people can compute the rate of property tax online. As per the plan, one would be able to calculate the taxable rate on their own without any hassle. The software will also enable the citizen to fill the form for paying up the taxes.
“This specialised system will enable people to find out the new rate of property tax on their own,” said additional municipal commissioner (projects), Rajiv Jalota.
The new computation method based on capital value was supposed to be implemented in April 2010. However, the plan got delayed due to severe criticism.
In the new method, the capital value of a flat is calculated on a property’s ready reckoner rates and the nature of the building. The BMC has previously been calculating property tax through rateable value of flat derived through rent.
Officials say that the new plan of self assessment of the property tax by the people has been conceptualised for greater transparency and convenience of the people.
“There is misinformation amongst people regarding the new tax evaluation system. People believe they will have to shell out a hefty amount. But the self assessment method will help eliminate the confusion and allow them to find out the rate of property tax,” Jalota added.
The BMC most of the time runs into dispute with people on matters related to property tax. “People are of the opinion that civic body levies unjustified amount of tax. They refuse to pay and the matter goes to court and takes years to settle,” said a senior civic official from the new property tax cell.
The draft for the new method is ready and will be implemented after nod from the municipal commissioner and standing committee.
The self assessment method will be introduced by December.
