The Pune Municipal Corporation (PMC) is poised to undertake a significant survey of nine lakh residential properties currently enjoying a 40% tax discount. This initiative aims to rectify inconsistencies where property owners are availing themselves of tax concessions while renting out their homes, an act that typically disqualifies them from receiving such benefits.
A senior official from the PMC’s property tax department, who chose to remain anonymous, elucidated that the 40% rebate is intended for properties occupied by their owners. However, discrepancies have emerged as some owners continue to exploit this concession while leasing their homes. To ensure compliance, the PMC will conduct regular surveys to monitor properties receiving this discount. Any properties found to have tenants will see their rebates revoked retroactively to 2019, as per the official’s statements.
The PMC oversees a jurisdiction that includes 34 villages and approximately 14.25 lakh properties, of which nine lakh are eligible for the discount. This tax relief has been in effect since 1970, yet in 2011, the state government raised concerns about its continuation, leading to a directive for cancellation that was implemented in 2019. As a result, the PMC rescinded rebates for around 97,000 property owners and sought repayment of these concessions. However, in 2023, the government reinstated the tax discount, compelling the PMC to extend the benefit to all residential properties for the fiscal year 2023-24. Property owners were required to submit a PT-3 application to retain the concession, with the deadline extended to August 15 due to numerous complaints.
Recent surveys of 4.52 lakh properties not receiving exemptions revealed approximately two lakh were occupied by tenants. Additionally, a survey conducted in June found 50,000 new properties with PT-3 applications filed. The findings indicated that 1,17,721 properties housed tenants, 55,106 buildings were closed, and 2,31,663 property owners were confirmed to be residing in their properties. In response to these discoveries, the PMC intends to enhance its tax collection efforts by establishing new squads and recovery teams. Employees will be tasked with recovering ₹250 to ₹300 crores monthly, and outstanding arrears will be communicated to property owners through various media channels, including calls and SMS. This proactive approach not only aims to bolster municipal revenue but also ensures that tax discounts are equitably distributed, fostering a fairer financial environment for all residents.
