Pune: The Pune Municipal Corporation (PMC) has embarked on a strategic initiative involving housing societies to monitor rented properties across the city. This move comes as PMC faces challenges in verifying self-occupancy certificates from property owners, impacting tax compliance and revenue collection.
PMC officials have noted a significant gap between the number of properties supposed to submit self-occupancy affidavits and those that have actually complied. With approximately 3.5 lakh property owners yet to submit required documents out of 4.5 lakh, the civic body has initiated awareness drives to rectify this disparity. A pilot project at the Sinhagad Road ward office revealed instances where self-occupied properties were incorrectly benefiting from a 40% tax discount intended solely for owner-occupied residences. By engaging housing societies as partners in this initiative, PMC is poised to achieve greater efficiency in tax administration, paving the way for sustainable urban development and enhanced municipal services across Pune.
“This misuse of tax benefits is causing substantial revenue losses for the civic administration,” commented a senior PMC official. To address this issue efficiently, PMC has decided to collaborate closely with housing societies. The objective is to gather comprehensive data on rented properties within their jurisdictions. This data will be cross-checked to identify properties illegitimately availing tax discounts meant for self-occupied units. Starting next week, PMC will communicate with housing society managements and utilize resources from its 15 ward offices to streamline this monitoring process effectively. The civic body aims to ensure that properties correctly classified as rented are taxed accordingly, eliminating financial losses due to incorrect benefit claims.
The saga of the 40% tax discount on self-occupied properties adds complexity to PMC’s efforts. Initially introduced in 1970 without state government notification, the discount was invalidated by Union government auditors in 2018-19, only to be reinstated in 2022-23 following public and property owner objections. As PMC continues its drive to enforce tax regulations rigorously, property owners are urged to complete formalities promptly, including submitting PT3 forms and other required documents. This proactive approach not only aims to restore financial integrity to Pune’s property tax system but also seeks to uphold transparency and accountability in civic governance.
