Commercial Properties to Face Increased Tax Rates

22 March 2011: From this financial year starting April 1, the tax rates of commercial properties are going to be doubled. With this increase, it is estimated that the GHMC would be able to make a profit of Rs.40 crore by the next year. With the present financial year coming to end, the GHMC is planning to issue notices to the concerned officials to pay the related taxes from next month onwards. 2 weeks’ time will be given to the businesses to respond to the notice.

The last amendments in commercial property tax rules were made in 2007. Before the implementation of fresh tax rules in 2007 on commercial properties, the entire city was divided into 115 zones and 344 sub divisions. During that period the tax rates were decided based on the business activity, area, kind of construction, etc. Hence there were differences in tax rates for areas in core city, suburbs and slums. However, GHMC could levy the fresh rate in full only for constructions which came up after the year 2007 and all the other commercial buildings, which paid tax based on self-assessment.

Source: The Hindu