Property Tax Revenue Increases by 30% in Gurgaon Not with standing Data Obstacles.

In comparison to the previous year, the Municipal Corporation of Gurugram (MCG) had a notable 30% rise in property tax revenue for the 2023–24 fiscal year. Reaching Rs 250 crore in collections is a significant start in the right direction. The MCG is still working to reach their entire goal of Rs 500 crore.

Causes of the Shortage in Collection:-

The deficiency in the collection of property taxes is caused by multiple sources. Inconsistencies in property tax data are a significant problem. A survey carried out in January 2022 revealed that 5.1 lakh homes fell under the purview of MCG. But locals said that false information, such as false plot sizes, resulted in exorbitant tax payments. As a result, numerous locals submitted online objections to correct their data, which hampered the process of gathering information.

MCG’s Efforts to Deal with the Problem

The MCG is acting to raise the accuracy of data and promote the payment of property taxes:

• Data correction: In response to resident concerns and official verification, the MCG is progressively updating data.
• Self-certification: On the state Urban Local Bodies (ULB) department’s no-dues certificate (NDC) portal, citizens can self-certify the information related to their property taxes and voice concerns. But until April 2nd, 2024, the gateway will be offline due to maintenance.
• Special camps: To make self-certification of property tax data easier, the MCG is organizing special camps in partnership with market organizations, resident welfare associations (RWAs), and citizen groups.

Tougher Penalties for Non-Payers

Additionally, the MCG is being more stern with individuals who fail to pay property taxes, especially if they owe more than Rs 1 lakh. Over 4,800 of these defaulters owing a total of Rs 160 crore as of March 22, 2024. The MCG has given them until March 31st to make payment; failing that, they will be subject to harsher penalties:

• Property sealing: The MCG will start sealing defaulters’ properties.
• Utilities will be disconnected: Defaulters’ water and sewer connections will be severed.

Rates and Incentives for Property Taxes

Depending on the size of the residential property land, Gurgaon has several property tax rates:

• Rs one per square yard up to 300 sq yards
• From 301 to 500 square feet, each square yard costs Rs 4.
• From 501 to 1,000 square feet: Six Rupees per square yard
• From 1,001 square feet to 2 acres: Seven Rupees per square yard
• Rs. 10 per square yard over two acres

Prior to March 31, 2024, the MCG granted a 100% waiver of interest penalties and a 15% rebate on property tax obligations for payments paid. This plan has probably come to an end.

Gazing Forward

The MCG has set a goal to earn Rs 250 crore in property taxes in the fiscal year 2024–2025. With the use of online self-certification alternatives, the resolution of data anomalies, and more stringent actions against defaulters, the MCG hopes to increase property tax collection and bring in much-needed cash for the city.