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GMC to impose 12% fine on one lakh property tax defaulters

The Ghaziabad municipal corporation is set to issue notices to more than 100,000 tax defaulters, who will now be required to pay a penalty of 12% on the outstanding amount. In the financial year 2024-25, the corporation generated revenue of Rs 609 crore, with house, water, and sewer taxes contributing nearly Rs 350 crore.

However, out of an estimated 450,000 properties in the city, over 100,000 have failed to pay their property taxes for FY 2024-25. Sanjeev Sinha, the chief tax assessment officer of GMC, stated that new notices will be dispatched to those in default. “If the taxes remain unpaid by the deadline, we will take action against the defaulters,” he remarked.

Last October, GMC introduced a limited-time rebate on house tax, offering a 10% discount on unpaid amounts. This rebate was reduced by 5% for the months of November and December and was later extended until January 31, 2025. Nevertheless, over 100,000 taxpayers, primarily from high-rise buildings in Indirapuram and Sidharth Vihar, did not settle their dues by March 31,” Sinha noted.

The civic body has previously digitized its tax collection process, allowing for online payment of house, sewer, and water taxes. GMC determines tax amounts based on the annual rental value (ARV) of properties. In March of this year, the board approved a proposal to align tax rates with the DM circle rate. The new tax rates will be calculated based on the width of the road adjacent to the property and its location.

For roads measuring 24 meters or wider, the charge will be Rs 4 per square foot, while for roads between 12 meters and 24 meters wide, the rate will be Rs 3.2 per square foot. On average, homeowners can expect an annual increase of Rs 4,000 to Rs 5,000 in their house tax rates starting from the new fiscal year.

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