Hi We took possession of a flat in 2014 The Builder had issued a possession letter in the year 2014. The Builder was able to get the Completion Certificate only in 2019 due to some issues. Now we are confused if we have to pay the Property tax effective from 2014 or 2019 ? Builder is not ready to give a revised possession letter. Is it fine if we pay the property tax effective from 2019 or due we have to pay the property tax right from 2014? Please advise. Thank you.
1. If you have taken possession from 2014 and builder have not paid property tax since 2014 then you are liable to pay property tax of last 5 years.
2. Builder will not give revised possession letter. As it will make him liable to pay the taxes of last 5 years.
3. You can take ground that as completion certificate is issued in 2019 so you are not liable to pay taxes before it.
Actually you should always take possession after occupation certificate. If you have taken possession before you may have to pay maintenance of society but you can deny property tax and tell builder to pay it
You are the owner of the proeprty with clear and marketable title to the property from the date of registration of the sale deed to your name.
Therefore you are liable to pay the property tax from the date of possession i.e., from the date of registration of property to your name, the OC has nothing to with the taxes payable on the property.
See usually the tax is levied from the date of electric connection for household seeing which the municipal authority can levy the tax, though in case you have taken possession in 2014 then by same they will levy the tax.
The builder must pay all the taxes including property tax until the property is conveyed to the Buyer.
Builder cannot transfer the liability to pay the taxes to the Buyer.
Builder could not have delivered possession of flat till issue of completion certificate
2) if you have taken possession in 2014 you are liable to pay property taxes from 2014
1. According to several Consumer Court judgments, Flat owner becomes liable to pay Property Tax from date of "Occupancy Certificate (OC)" granted by the local Municipal Corporation.
2. Flat Owners are not liable to pay property tax from date of possession IF OC is not received.
3. Hence check the OC date.
When sale deed executed ?
Without OC/CC, delivery of possession is illegal. What ever dues, builder is liable to pay.
1. Property Tax is payable only after completion certificate is issued by the competent authority. In the first place you should not have taken possession unless CC was issued. This is a very bad and unwise practice followed by buyers who then face the music.
2. Now that you took possession in 2014 you are liable to pay property tax from the date of possession.
