Pune: The Pune Municipal Corporation (PMC) is set to embark on a comprehensive survey of nine lakh residential properties that currently benefit from a 40% tax discount. This move aims to address discrepancies where property owners have claimed the concession while subsequently renting out their homes, which should technically disqualify them from receiving the rebate.
A senior official from the PMC’s property tax department, who preferred to remain anonymous, explained that the 40% tax rebate is designated for residential properties where the owners themselves reside. However, issues have arisen as some property owners continue to avail themselves of this benefit despite renting out their properties. “To ensure compliance, PMC will now conduct regular surveys to monitor properties receiving the concession. The discount will be revoked for any properties found to have tenants, effective from 2019 onwards,” the official stated.
The PMC jurisdiction, encompassing 34 villages and approximately 14.25 lakh properties, includes the nine lakh residential properties eligible for the discount. The tax relief has been in place since 1970, but in 2011, the state government objected to its continuation and mandated its cancellation, a directive that was enforced in 2019. Consequently, the PMC rescinded the rebate for around 97,000 property owners and sought repayment of the tax concession. However, in 2023, the government reinstated the tax discount, prompting the PMC to extend the concession to all residential properties for the fiscal year 2023-24. Property owners were required to submit a PT-3 application to retain the benefit. The deadline for this application was subsequently extended to August 15, following numerous complaints.
During a recent survey of 4.52 lakh properties not receiving exemptions, PMC discovered that approximately two lakh properties were occupied by tenants. Furthermore, a June survey of all rebate applicants identified 50,000 new properties, with PT-3 applications filed for these. The survey also revealed that 1,17,721 properties had tenants, 55,106 buildings were closed, and 2,31,663 property owners were confirmed to be residing in their properties. In response to these findings, the PMC plans to ramp up its efforts in tax collection. New squads and recovery teams will be established to enhance field operations, with employees tasked to recover ₹250 to ₹300 crores per month. Outstanding arrears will be communicated through various media channels, and property owners will be notified of their dues via calls and SMS.
