Trichy Corporation tax collection has increased by 85%, focusing on defaulters. Legal ambiguities persist, fueling civic action. Trichy Corporation has significantly improved its tax collection to 85%, honing in on top tax defaulters who have skipped property tax payments for years. With just weeks remaining in the financial year, the local body has amassed a remarkable ₹120 crore in property tax, surpassing last year’s collection by ₹5 crore.
A strategic focus on government buildings and properties entangled in litigation has bolstered the local body’s tax revenue. Last fiscal year, ending 31 March 2023, Trichy Corporation tallied ₹115 crore in property tax collections. This year, efforts concentrated on tax defaulters withholding payments ranging from ₹1 lakh to ₹2 lakh per property, resulting in a notable ₹18 crore surge in the past two months alone.
Resolving property litigations and persuading owners to settle dues have been instrumental in augmenting tax collection. Over the last three months, 1,477 new assessments have been identified for property tax levies. The total number of assessments, indicating taxable properties, has climbed from 2,35,679 in March 2023 to 2,37,156 in March 2024. Reflecting a significant improvement, the civic body has raised the collection of property tax arrears from 28% in December 2023 to 43% presently.
Hotels, theaters, and various commercial establishments have been among the properties encouraged to clear their outstanding dues. Shedding light on the intensive tax collection drive, officials underscored its critical role in securing Central Finance Commission (CFC) funds, amounting to approximately ₹80 crore, earmarked for the city based on its property tax collection performance.
Commissioner V Saravanan emphasised the indispensable nature of CFC funds for vital municipal functions such as waste management and drinking water supply. ‘As we’ve presented a surplus city budget, revenue from property tax is pivotal in fulfilling our budgetary commitments,’ to the news articles.
However, grappling with legal ambiguities concerning gated communities and apartments with a mix of flats carrying unpaid dues and others with nil dues, the civic body aims to rally support from residents’ welfare associations to compel defaulters to settle their dues.
For legal guidance on property tax matters or resolving litigation, consult our tax experts. With expertise in corporate law, we navigate complexities to ensure fair outcomes for property owners and local bodies alike. Get on call with Vakilsearch today.
- Maya and Leah Tata Appointed to the Board of Trustees at Sir Ratan Tata Industrial Institute - January 10, 2025
- L&T Chairman SN Subrahmanyan Earned ₹51 Crore in FY24 - January 10, 2025
- WhatsApp Introduces Images in Polls for Channels in Beta Update - January 10, 2025
