Dear sir/madam, For a newly constructed flat that has been handed over recently, we are asked to pay property tax for FY20. Start date for property tax is considered based on the first occupancy. Since we have not yet occupied the property nor is rented out. How are we to claim Vacancy Remission if applicable? Thanks.
Its not based on your possession to take or not.
If Municipal Corporation has issued completion certificate and Occupancy certificate to builder and builder has informed to them that flat is sold out to respective buyers i.e (You and other flat owners), then Municipal property tax will be applicable.
Kindly check whether for above two certificates has been issued by Municipal Corporation to Builder. (CC & OC).
Once registered sale deed is executed in your favour and possession delivered by builder you are liable to pay property taxes
2) even if flat is vacant you have to pay property taxes
- Property tax is subject matter of revenue department /municipal corporation and not society .
- If the property is already registered in your name , and occupation certificate has been issued to you , then legally you are under obligation to pay the property tax, whether it is vacated or not.
Thanks. I can see there are concessions that I can claim on RLV. When are they applicable and how can it be claimed? Same with vacancy remission. My understanding is that vacancy remission is only part of the tax that can be claimed and not whole sum. So when is this applicable?
t. Section 105(1) of the Act says:
"When any building whether ordinarily let or occupied by the owner himself has been vacant and unlet for thirty or more consecutive days in any half year, the Commissioner shall remit so much, not exceeding one-half of such portion of the tax as relates to the building only as is proportionate to the number of days during which the building was vacant and unlet in the half-year."
- If any building together with land appurtenant thereto has remained vacant and unproductive or rent for sixty or more consecutive days, the Chairperson shall remit or refund, as the case may be, two -thirds of such portion of the property tax assessed on the rateable value thereof ,as may be proportionate to the number of days during which the said building together with the land appurtenant thereto has remained vacant and unproductive of rent.
- Hence, you can retained two third of the payable tax .
Dear sir,
Once the sale deed is executed in your favor, and the occupancy certificate has also been issued in your name, you need to pay the taxes imposed on such property.
Also,
When a building consists of two or more separate tenements and one or more such tenements has remained vacant and unproductive of rent during any such period as aforesaid, the Municipal Commissioner may remit or refund such portion (if any) of each tax or instalment as may be prescribed:
Provided that no remission shall be granted unless notice in writing of the fact of the building or land being vacant and unproductive of rent has been given to the Corporation; and that no remission or refund shall take effect for any period previous to the day of the delivery of such notice.
Shiv Sewak Singh v. State of U.P
Thank You
If the property had been registered on your name and the same has been handed over, you are liable to pay the applicable taxes, immaterial of the fa t that you have occupied it or let it out ion rent or it is lying vacant.
Tamil Nadu Village Panchayat (Assessment and Collection of taxes) Rules, 1999:
It is not known that whether you are eligible for vacancy remission under the provisions of above law, however for your information the rules for claiming vacancy remission is given below, please go through if you satisfy the said conditions:
19. Vacancy remission
1) When any house or a portion of a house has been vacant for ninety or more consecutive days in a half year or one hundred and eighty or more consecutive days in a year, the Executive Authority shall, on demand by the assessee, remit so much, not exceeding two thirds of the amount of the tax, as is proportionate to the number of days during which the house was vacant in the half year or year.
2) Every demand for remission under sub Rule (1) shall be made during the half-year or
year in respect of which the remission is sought or in the following half-year or year and not after wards.
3-(a) No demand for such remission shall be entertained unless the owner of the house or
his agent has previously given notice to the Executive Authority, the house is vacant and the period in respect of which the remission is made shall be calculated from the date of delivery of such notice.
(b) Every such notice shall expire in a half year or year during which it is so delivered and shall take no effect thereafter.
Yes you are on right path as per your aforesaid submission
