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Reduction in the property tax penalty by GCC
Posted on: 06/Nov/2020 9:03:59 AM
The Covid-19 pandemic has brought the economy down is well known to us. Now, GCC has planned to reduce the penalty for property tax assesses due to this challenging economic conditions.
It is now revealed that the revision would come into effect for the half year period between October 2020 and March 2021. After an amendment to the Chennai City Municipal Corporation Act, the GCC has been collecting penalty for the delayed payment of property taxes from the second half of 2019-20202 is known. If the property tax was not paid during the first 14 days after the commencement of the half year, assesses would have to pay 2percent of the simple interest for the tax amount.
As per an officer of GCC, the penalty would be reduced from 2% to 0.5% now. He explained that after the revision the property tax assesses who failed to pay their property taxes before 15th October this year would pay 0.55 of the amount based on simple interest calculation for the half year period of time. In October, atleast 1.3lakhs assesses have paid their property taxes.
Information gathered now is more than 10.9 lakh assesses haven’t paid their property taxes for the half year time period of October 20202 to March 2021.Point is that those assesses who have already paid the penalty amount would have to pay reduced tax for the next half year after adjusting their fine amount. The method of calculation of penalty for the delayed tax payment has become an issue and many residents have complained that to the civic body officials.
According to the amendment of the Act, the Chennai Corporation has to impose penalty only after the second half period of 2019-2020.Point is that after the second half year period of 2019-2020 only the corporation must collect penalty but instead the penalty amount has been collected for old arrears also.
