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FREQUENTLY ASKED QUESTIONS Regarding Extract of Property Tax Register : 1. WHAT IS EXTRACT OF PROPERTY TAX REGISTER 2. WHY DO I NEED AN EXTRACT OF PROPERTY TAX
REGISTER?
The extract of Property tax
Register is one of the required documents in case you require a
building license, trade license or loan from banks or any other
financial institution. The extract of Property tax Register is also
accepted in civil court as document to claim or give bail/surety
etc., Lastly it is
for all property owner/holders to pay property tax; hence you
need extract of
Property tax Register. 3. WHO IS ELIGIBLE FOR OBTAINING EXTRACT
OF PROPERTY TAX
REGISTER?
All the
property owners/holders or title holders and on whom the owner ship of property
has been devolved by virtue of being as legal heir, or through other
instruments like sale deed, gift deed, partition deed, release deed,
will etc., 4. WHAT IS THE DIFFERENCE BETWEEN EXTRACT
OF PROPERTY TAX
REGISTER
AND A TITLE DEED?
As stated
earlier, an
extract of Property tax Register is an account of assessment of
property for the payment of tax. The extract of Property tax
Register is neither a record of rights nor does it
confer ownership. 5. WHAT IS TRANSFER OF EXTRACT OF PROPERTY TAX
REGISTER?
This is done when the title of
property is transferred from one person to another by way of Sale,
Gift, will or in case of death of the property owner, settlement
release sale deed or by division of property through an instrument
etc., where by another person becomes primarily liable for
tax. 6. HOW LONG WILL IT TAKE FOR ISSUE OF MY
EXTRACT OF PROPERTY TAX REGISTER When
you pay property tax, the ULB is obliged to give you an extract of
property tax register free of cost to you. In such cases it should
not take more than 7 days to get your extract from property tax
register. When you apply for a change in the property tax register
it would take about 45 days to effect the change (as a notice of 30
days is required to be given to all interested parties). II - GUIDE TO GET CHANGES IN
PROPERTY TAX REGISTER Submit the filled up application form along with copies of
necessary documents mentioned in the application form. Also submit copy of your up-to-date tax paid
receipt. Duly signed acknowledgement form will be returned to
you. When there is no dispute to such change, the change will be
effected after 30 days of your application. If some discrepancy is found, the spot will be Inspected
under intimation to you and if some more information/documents are
required, the same should be furnished for taking further action
on case to case basis. Development charges (section 17/18 KTCP fee) will be
collected at the rate prescribed by the municipality for new
registration of property of new layouts. Regarding Self-Assessed Property Tax Question and Answers
As mentioned
in Article 265 of the Constitution, tax is not supposed to be levied
and collected otherwise than under powers of Law. The Karnataka
Municipalities (Amendment) Act, 2000, which adopted the property tax
reforms came into force on
19-11-2001. Rejecting the public interest petitions, the
Karnataka High Court has decided on 17-4-2003 that the amended Act
is Constitutional.
Amendment Law Question 1: Which are the laws that have been enacted to bring
into effect the system of self-assessment of property tax? Answer:
The self-assessment of property tax system on the whole has
been brought into force through the Karnataka Municipalities
(Amendment) Act, 2000 and the Karnataka Municipalities (Amendment)
Ordinance, 2003 and the Karnataka Municipalities (Amendment) Act,
2003. Question 2: What are the
differences between the old Law and the new Law? Answer: In
the old Law the Municipalities prescribed the rate of tax. The
assessing officer was levying tax after fixing annual rental value
of the property. The powers of deciding the value of the property
and assessment of tax were with the tax officers. In the new Law,
the Registration Department decides guidance market value of the
property assessment as per Stamp Act in different areas and the
municipalities fix the tax rate on the capital value. The owner of
the property assesses on his own the property tax of his property,
pays it and files the returns. For tax evaders the officers will fix
the tax, impose penalty and recover the same. Question 3: What benefits does a self-assessor get and what are the
problems faced by a tax evader? Answer:
There is an offer of a concession of 5% for those who remit
the tax for the year 2002-03 and 2003-04 before
30-9-2003. There is no fear of harassment, litigations to him. For
those who evade tax without assessment of property, 2% of penalty
will be imposed compulsorily for each month.
Question 4: There is much difference in the value of land and
building fixed by Registration Department from one street to
another. So do we have to pay tax based on the value assessment made
by the Registration Department? Answer:
It is natural that the market value of land in different
areas is different. Having agreed, hitherto, the market value fixed
by the Expert Committee under Section 45B of Stamp Act since several
years, it is not proper to oppose it now at the time of paying this
property tax. It is inevitable to pay property tax as per the value
announced so far. Question 5: Does it not affect on the revenue of municipalities if
mass movement is held? Answer:
It is an offence to organize mass movement in case of tax
that has adverse effect on the revenue of municipalities. As per the
Karnataka Prevention of Incitement to Refuse or Deter Payment of Tax
Act, 1981, calling for a refusal of tax leads to 5 years rigorous
imprisonment. The inciters for movement also are liable for 5 years'
rigorous imprisonment. Question 6: After the municipalities passed the resolution of
levying 0.3% tax on the vacant land the recovery was withheld. What
to do now? Answer:
On 16-6-2003 an Ordinance was promulgated reducing the
tax rate for vacant land. The reduced tax rate for vacant land came
into effect retrospectively i.e., from 19-11-2001. Hence the tax to
be given for the vacant land is 0.1%. Question 7: How much cess is
being collected for water supply? Answer:
Cess for water supply has been abolished from 2003-04.
For the year 2002-03 water supply cess 20%. is to be paid.
Question 8: What is the procedure for levying tax on the houses
built on agricultural land within the limits of municipality? Answer:
Agricultural land is exempted from property tax. But for
the buildings constructed on agricultural lands, the value should be
fixed based on the built up area and plinth area of the building. If
the appurtenant land is used for non-agricultural purpose, property
tax should be paid for that also. Question 9:
One acre of agricultural land in the city
limits has been converted. How to calculate the tax? Answer:
If the agricultural land is converted property tax is to
be paid. For the first 10760 Sq.ft. of vacant land, for 1 lakh at
Rs. 100/-, further for the vacant land upto 43040 Sq.ft. for each
lakh at Rs. 25/-,
and for the vacant land above 43040 Sq.ft. for each lakh at Rs. 10/-
should be calculated and paid. Question 10:
What is the procedure for paying tax by
the persons who have constructed unauthorized building? Answer:
They should pay tax for each building. The owner of the
building should pay tax even for unauthorized building. The officers
shall receive the tax remitted by the owner. They should not refuse
to receive tax for unauthorized building. The tax officers have the
power of levying double the amount of tax for the unauthorized
building after making an enquiry. But, if the unauthorized
buildings are located on the lands of Government / Municipal/ Forest
Department (Public Institution) tax should not be recovered and Form
III should not be served to them either. Question 11:
Do the self-occupied commercial buildings
attract rebate of 50%? Answer:
No rebate is permissible. There was a rebate of 50% to
the self-occupied commercial buildings in 2002-03. This is revoked
from the year
2003-2004. Answer:
If a municipality passes a resolution, which is
ultravires, the Deputy Commissioner may suspend that resolution
under Section 306 or may restrict the passing of such
resolution. Question 13: Can the order of
the Deputy Commissioner suspending the resolution be placed before
the municipality for decision? Answer:
The order suspending the resolution comes into effect
immediately. There is no need to place the same before the
municipality. The officers shall not implement the suspended
resolution. Question 14:
Whether tax should be paid for the
cowshed or sheds annexed to the houses? Answer:
Tax should be paid on all types of buildings. Question 15:
Can property tax be imposed on small
sites with Sy.Nos. in town limits? Answer:
Yes. Tax has to be imposed on sites at the rate
applicable to vacant land and property tax has to be paid as
such. Question 16:
Is it compulsory for the charitable
institutions to disclose details of appropriation of income? Answer:
Charitable institutions exempted from taxation have to
file the self-assessed property tax returns which should contain
details of the charitable institution. If officers come to know
regarding any fraud taken place in the name of charity, they can
impose tax on enquiry. Question 17:
Can the municipalities decide not to
enforce self- assessed property tax system? Answer:
No. Law violating decision is illegal. Permission was
given temporarily to collect the property tax in old system until
taking action as per new system. Henceforth property tax has to be
imposed and collected as per amended rules and old system cannot be
continued. If the municipalities decide otherwise, it will be unwise
on their part losing the power of imposing the property tax. Question 18:
If any municipality even after having the
knowledge of rules, maliciously does not assess the rate of property
tax what would be the consequence? Answer:
The Government may issue notification under Section (4)
as amended and order the municipality to levy tax as prescribed in
the notification. The municipalities should decide as
directed. Question 19:
Even then if the municipality does not
take decision or violates the order, what action could the
Government take? Answer:
The Government has power to dissolve the municipality
under Section 316 and also can depose the members opposing the
placing of such resolution. Question 20:
Can property tax be recovered from those
who construct a house without the conversion of agricultural
land? Answer:
If a building is constructed normally property tax has to
be paid. For construction of building without conversion of
agricultural land, the Tahsildar is empowered to initiate legal
action separately under the Land Revenue Act.
Property Tax Register Question 21:
Can a person who does not have khata in
his name, pay the self-assessed property tax? Answer:
Yes. All property owners must pay the property tax and
file the returns. All the property owners whether they have khata or
not in the old system should pay the tax and file the returns.
(Excluding unauthorized buildings situated in Government / Municipal
/ Forest Department's land) Question 22:
There is confusion over khata. What is
khata? Answer:
Khata means Register in
Form-MAR19 in which tax is imposed. It is only an account of
who is primarily liable to pay property tax, the amount of property
tax, arrears of property tax, the details of site and building. A
khata does not confer title or ownership . After introduction
of Capital value based SAS, Form MAR19 is abolished and
Account of property tax is being maintained in Form III. Question 23:
Whether khata and record of rights are
same? Answer:
Khata shows dues of property tax. It is not Record of
rights. Land Revenue Department or Survey Department has power to
write Record of Rights and Municipality does not write record of
rights.. Question 24:
What is the reason behind the opinion
that khata of municipality is record of rights? Answer:
Khata means a Register written in Form – 19 imposing
property tax (now being written in Form III ). It is insisted in the
circular of the Department of Land Revenue that while selling the
property, a copy of Form 19 (now Form III ) must be furnished to the
Sub Registrar for the assessment of the value of the property. Since
the property tax is the first charge on the property, the lending
banks used to ask for a copy of khata. For this reason people
thought that khata itself is the Record of Rights. After the payment of self assessed
property tax, the same shall be entered in property tax register and
property tax register should be maintained as per Rule 106. Method of Submitting the Statement Question 25:
What is the information required to be
given by the municipalities to facilitate taxpayers to submit the
statement? Answer:
The guidelines published by the municipalities under Sub
Section 9 of Section 105 shall contain the following
details. 1. Approximate
market price per square foot in every street or area as announced
under Section 45B of the Karnataka Stamps Act. Question 26:
What is the information required to be
furnished by the owner of the property based on the information
published by the municipality?
Answer:
The property statement submitted by every owner or
occupant of that property shall contain the following information
regarding that property. 1. Measurement
of vacant land Question 27:
Which is the aspect on which the
assessment of the capital value of the land and building are based
upon? Answer:
Value of the land has to be assessed after taking into
consideration the rate of the land announced under Section 45(b) of
the Stamps Act. Question 28:
Since some changes are found necessary in
the statement due to certain modifications made in the legislation
what should be the type of the statement? Answer:
Since some changes have been made as regards vacant land,
some modifications can be done in the statement. Taxpayers can use
the following Form for the statement.
Property Tax Statement 1. Name of the
owner
Vacant Land 8. No. of the
site 14.
Market price of the land per sq.ft. (as per published
guidance value) 16.
Rate of tax on vacant land
Property Tax on vacant land 17. Property tax on vacant
land
[15 (a) x 16 (a) + 15 (b) x 16 (b) + 15 (c) x 16 (c)]
Building 18.
Built up area of the building
Property tax on the building 28.
Use of Property
Total Property Tax to be paid 32.
Total property tax on vacant land and building
(No. 17 + No. 30) or (No. 17 + No. 31)
Cess 33.
Total Cess (24% of No. 32)
Amount to be paid 34.
Total amount to be paid (No. 31 + No. 33)
Mode of payment 37.
Name of the Bank Records Furnished (a) Challan
(b)
I - - - - - -
- - Son / Daughter - - - - - - - of Sri./Smt. - - - - -
hereby declare that the information furnished by me in this
statement is true and complete to the best of my knowledge and
belief and according to the provisions of the Karnataka
Municipalities Act, 1964. Date
Signature
Name Number Seal Date
Received by (Signature) Question 29:
What has to be done if the tenant pays the tax? Answer:
By the time the tenant submits the returns after payment
of the tax he, as an occupant has paid the tax. The points mentioned
in the returns, only have to be entered in the property tax
Register. The Municipal Officers do not have power to resolve the
dispute between the tenant and the owner.
Question 30:
The taxpayers hesitate to pay the tax as
the newspapers and T.V. media carry the news opposing
self-assessment system. What action the Municipalities can
take? Answer:
Municipalities must educate the people regarding the
rules through daily newspaper and T.V. and give information, which
would guide the people. People have right to information under the
Karnataka Right to Information Act, 2000. Question 31:
What has to be done if the tax to be paid
is more than that was imposed in earlier system? Answer:
The old and new tax systems have to be compared
justifiably. As per earlier rule, property tax must be equal to 2
months' rent. It is justifiable to compare expected 2 months' rent
and the property tax to be paid. It is not fair to compare the
amount of tax made to assess less by immoral means such as bribe or
influence and fair tax which has to be paid now. It is better to pay
the tax fairly atleast now onwards. Question 32:
Some people argue that while assessing
the value of building the value of land should not be considered.
What is the answer to them? Answer:
The property tax refers to the tax on the land and
building as enumerated in the Constitution. The land means the land
in which the building is constructed upon and the permanent
structures annexed thereto. It is not correct to consider only
construction cost. For eg: Rental value or selling price of 2
similar type of houses, one constructed near the Devaraj market and
another in the plateau of Chamundi Hills in Mysore cannot be same.
It is found that while assessing the rental value, the land value is
also taken into consideration. Similarly the rent or selling price
of two similar types of houses one situated in Hampanakatte in
Mangalore and another in Padavu cannot be same. While assessing the
building value, it is justifiable to take into account the value of
the built-up area. Question 33:
What is the reply to the question raised
by some people as to the propriety behind imposing property tax on
vacant land? Answer:
Imposition of tax on land and building comes in the
purview of the State government. It is to be noted that Government
has taken steps to levy tax on urban land as municipalities do not
levy the property tax on vacant land effectively. In order to levy
tax on urban vacant land the Government enacted the Karnataka Urban
Land Tax Act. Provision was made in this Act to collect the tax of
1% (Rs. 1000 per lakh rupees) of the actual market value of urban
vacant land. The urban land tax officer could levy the tax after
conducting the spot examination. After the 74th Amendment
to the Constitution, with a view to give more taxation power to
Municipalities, the Karnataka Urban Land Tax Act was repealed in
2000 and some major reforms were made in property taxation and
municipalities were delegated with the power of levying tax on
vacant land. It is not fair to oppose the reform of empowering the
Municipalities to revoke the system of levying of tax at the rate of
1% on the actual market value by the tax officers as per earlier law
after conducting spot examination and introducing levy of tax on the
transparent announced estimated value at the rate of
Rs. 100/- in 1st stage, Rs. 25/- in 2nd
Stage and Rs. 10/- in 3rd stage per lakh. Question 34:
Some people raise objections that while
councilors of municipalities do not pay the property tax, how the
public can be compelled to pay the property tax. What should be the
reply in such circumstances? Answer:
A councillor who becomes a defaulter of payment of
property tax will be disqualified to continue in office under
Section 16. The Deputy Commissioner has power to dismiss such
persons. The Deputy Commissioner can take such action suomoto or on
the report. The taxpayers instead of attributing it to their tax
payment should pay the property tax on their property. |
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