Nagpur civic body relaxes interest on late payment of property tax

The Nagpur Municipal Corporation (NMC) has relaxed norms of interest on late payment of property tax. Now, interest will be applicable only after three months of receiving the demand notes. Municipal commissioner AbhijitBangar has approved the proposal of the property tax department seeking relaxation in norms of interest. The decision has been taken following the civic body’s failure to complete revaluation drive under new property tax system of rent chart+ready reckoner value. Also, property tax is increasing by 2-5 times in new system. Hence, the NMC decided to go soft on the taxpayers. As per the NMC’s rules, it is the responsibility of taxpayers to pay property tax even if they have not received demand notes from the NMC. The taxpayers have to pay property tax of first six months (April 1 to September 30) within three months of receiving the demand notes. If they fail to do so, interest of 2% per month become applicable. Under the revaluation drive, the NMC has been able to complete revaluation of 5 of total 6 lakh properties. Demand notes of 4.30 lakh properties have been issued. The process to prepare and issue demand notes to remaining properties is still going on. The relaxation in the norms of interest will also be applicable for the last fiscal if taxpayers have not received demand notes.