Property tax: SCB inches closer to target

March 08, 2015 12:00 am | Updated 08:11 am IST - HYDERABAD:

Secunderabad Cantonment Board (SCB) is inching closer to its property tax target for this financial year, as officials are pulling all stops to ensure compliance.

The tax department of SCB has netted Rs. 20 crore by pursuing taxpayers and issuing demand notices beginning with assesses whose evaluation exceeds Rs. 50,000. The SCB is targeting Rs. 26 crore from 36,000 tax-assesses this year.

“Following revaluation of property tax rates, we began issuing notices. Individuals not satisfied with their assessment are now approaching us for negotiations,” an official, not willing to be identified, said. In order to create awareness, SCB also started making announcements through a vehicle assigned to tour its eight wards on daily basis. The CEO of SCB, Sujatha Gupta, has already announced action against defaulters.

Property tax rates were revised in 2014, after a gap of more than two decades. As a result, tax rates in most areas increased nearly four times. Those groused with the revision have represented to the CEO seeking lowering of taxes.

Nearly 500 such applications were known to be submitted seeking clarifications and protesting against the assessment. Meetings are being held to discuss the representations and if found a fit case, the CEO has powers to make a limited tax exemption, the official explained.

Efforts to increase collections have been stepped up this year given the earning potentials the authorities have realised. During a recent board meeting, the CEO remarked that property tax compliance in SCB falls shy of 40 per cent. Last year, SCB collected Rs. 17 crore in property tax. With complete compliance, the area can realise a revenue potential of Rs. 100 crore, the CEO had said.

To meet its targets, SCB this year is keen on recovering at least a part of the nine crore rupees that the Begumpet airport owes in property tax over the last decade. As the matter was adjudged in the High Court, SCB plans to petition the court to recover its dues.

SCB keen on recovering a part of Rs. 9 crore that the Begumpet airport owes over the last decade

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