AMC slashes cheque bounce penalty for commercial property tax

Ahmedabad Municipal Corporation’s(AMC) revenue department has reduced the cheque bounce penalty for commercial property tax.

Earlier, the civic body used to charge 5% of the tax bill amount or Rs 1,000, whichever is higher.

Now, the AMC will charge 5% of the tax bill amount or Rs 1,000, whichever is less.

The AMC has not changed the cheque bounce penalty for residential property. It remains Rs 500 or 5% of the bill amount, whichever is less.

“For example, earlier, if the cheque of a taxpayer whose tax amount was Rs 10 lakh bounced, he had to pay Rs 50,000 as a penalty. Now, the penalty will be Rs 1,000,” said Jainik Vakil, chairman of AMC’s revenue committee.