Property owners in the Pune Municipal Corporation (PMC) are facing confusion and frustration over their property tax bills, which have been delayed and contain discrepancies. The Maharashtra government's decision to reinstate a 40% tax deduction for self-occupied homes has led to issues with software updates and re-issued bills. PMC officials have acknowledged the problem and plan to provide clearer explanations on future bills. However, residents are expressing dissatisfaction with the lack of guidance and the burden of resolving the errors.
Even after 20 days of the municipality releasing bills, property owners are still unsure of the specific sum they need to pay for property tax. Several landowners have reported receiving exorbitant tax assessments, which have left them surprised and bewildered about the amount charged. According to PMC officials, the renewed application of a 40 percent tax deduction for self-occupied homes within municipal limits by the Maharashtra government in April has led to discrepancies due to updates in software and re-issued bills.
The property tax officials of PMC stated that the civic body will be providing printed elucidation on bills in the future. PMC is set to make necessary adjustments to property tax invoices. According to Kunal Khemnar, additional commissioner of PMC, it will provide a clear understanding of the payments required by individuals who own properties and those who are renting them. The public has highlighted that the procedure to obtain accurate invoices is an avoidable inconvenience.
Several individuals residing on their own properties have reported that they have been consistently paying taxes and have been occupying the same premises for numerous years. Despite the situation, the PMC has requested that they settle outstanding payments reflected in the bills issued recently. The bills lack any guidance or explanations regarding the accumulated debts. According to a resident, individuals who have consistently paid their taxes should not be required to complete PT3 forms or engage in other formalities at ward offices. The fault lies with the local government, and innocent residents should not be made to bear the brunt of their errors.
Ganesh Shinde of Erandwane questioned the reason for the inflated bills. According to him, the civic administration should create a helpline to inform citizens about taxes and arrears. Resident Nitin Deshpande on Paud Road said exorbitant bills demotivate taxpayers. Despite paying taxes diligently for several years, we have had to tirelessly chase after corrected bills. This situation is highly aggravating, and it is suggested that PMC send corrected bills directly to citizens without requiring visits to civic offices.
An unidentified resident of Sinhagad Road disclosed that local officials and PMC levels instructed them to pay the full amount. Why should responsible taxpayers be burdened with paying unnecessary arrears? Is the PMC attempting to exploit the situation and collect advance taxes from us unfairly? If that's true, it's nothing but an effort to deceive individuals in order to boost PMC's earnings.
Property tax bills were distributed starting May 15, delayed by 1.5 months. Distribution was delayed by PMC waiting for government notification on the tax discount for self-occupied properties, issued in April. As per government notice, properties registered post-2019 have not yet received a 40 percent discount and will be assessed and offered concessions starting April 1, 2023. Officials say PMC will lose Rs 401 crore in revenue, but residents welcome the discount.
The 40 percent tax break for self-occupied properties within PMC limits began in 1970, but the state government did not formally enact it. In 2019, the discount was declared illegal and removed. In 2021 and 2022, PMC asked 60,000 property owners to pay 40 percent extra tax retroactively. Recovery was halted due to public opposition.
This story was earlier published in ET Realty