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The Prayagraj Municipal Corporation has approved a 40% rebate on house tax for residential buildings that are more than 20 years old within the municipal limits. The decision was passed during a municipal house meeting and will be implemented from April 2026. Eligible property owners will receive the rebate automatically without submitting any application. The move is expected to benefit residents living in older neighbourhoods where many structures have crossed two decades. During the same meeting, the civic body also revised its 2025-26 budget, increased allocations for water services, and proposed a one-time settlement scheme to recover long-pending property tax dues.
The Prayagraj Municipal Corporation has approved a proposal to provide a 40% rebate on house tax for residential buildings that are more than 20 years old within the city limits. The proposal was passed during a municipal house meeting where members discussed tax relief measures and revisions to the civic budget. Advertisement
Under the decision, the rebate will come into effect from April 2026. Municipal officials indicated that eligible property owners will not be required to submit any separate application or request to claim the concession. The municipal corporation will identify properties that qualify based on its property tax records and apply the rebate automatically.
The relief is expected to benefit residents living in several older parts of the city where a large number of buildings were constructed decades ago. Localities such as Kidganj, Daraganj, Rambagh, Bairhana, Chowk, Shahganj, Kareli, Malviya Nagar, Mundera and Chakia have a significant number of houses that are likely to qualify for the rebate once the policy is implemented.
Municipal officials indicated that many of these buildings require regular maintenance and repairs due to their age. The rebate has been introduced to reduce the tax burden on residents who own older properties and may already be spending on upkeep and structural maintenance.
The proposal was discussed and supported by members of the municipal house before being approved. Civic officials also stated that the measure is expected to improve cooperation from residents in property tax compliance while providing relief to long-time property owners.
During the same meeting, the municipal corporation approved a revised budget for the 2025-26 financial year. The overall municipal budget was reduced by around INR 235 crore to approximately INR 2,100 crore after the civic body received lower grants from the state government than initially expected.
At the same time, the budget allocation for the Jal Kal department, which manages drinking water supply in the city, was increased by about INR 31.40 crore. The additional funds are expected to be used to improve water supply infrastructure and strengthen services for residents in different parts of the city.
The municipal corporation also discussed steps to address long-pending property tax dues. Officials said the civic body plans to request approval from the state government to introduce a One-Time Settlement (OTS) scheme for major house tax defaulters. If approved, the scheme would allow property owners with pending dues to clear their outstanding payments with relief in interest and penalties.
Property tax remains one of the primary sources of revenue for urban local bodies, including the Prayagraj Municipal Corporation. In recent months, the civic body has taken steps to strengthen tax collection by issuing notices to thousands of property owners who have not cleared their dues.
Officials believe that the combination of tax relief for older properties and stricter recovery measures for defaulters will help the municipal corporation maintain revenue stability while addressing concerns of residents living in ageing buildings.
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