Pune Municipal Corporation Grants 40% Property Tax Exemption To Residential Properties In Merged Villages
Sumit Singh
Pune, 11th May 2023: The Taxation and Tax Collection Department of the Pune Municipal Corporation (PMC) has implemented a 40 percent property tax exemption for residential properties in villages that were included in the PMC limits.
This decision aims to provide relief to property owners and has been specifically extended to properties registered with Gram Panchayats and the Municipal Corporation after 2021.
The 40 percent discount in property tax will be applicable to properties where the house owners reside. This resolution was initially adopted by the general body of the Pune Municipal Corporation in 1970. However, the concession was revoked by the municipal corporation in 2019. Following public dissatisfaction, the Maharashtra state cabinet intervened and decided to reinstate the concession. The implementation of this discount will commence from the current financial year, starting from April 1, and the process has already been initiated by the Taxation and Tax Collection Department.
In 2021, a total of 23 villages were included in the Pune Municipal Corporation, while two villages, Fursungi and Uruli Devachi, are set to be excluded. The merged villages comprise 182,164 residential properties, 14,351 non-residential properties, and 700 open spaces. As these villages were incorporated into the Municipal Corporation in 2021, they were not previously eligible for the 40 percent discount. However, this exemption will now be granted to them.
How To Avail the 40% Property Tax Discount In Pune: PMC Clarifies Process
Ajit Deshmukh, the head of the Property Tax Department, explained that following the inclusion of new villages, the property tax is levied at 20 percent of the total tax in the first year, increasing to 40 percent in the second year, 60 percent in the third year, 80 percent in the fourth year, and finally reaching 100 percent in the fifth year. To avail themselves of the exemption, property owners are required to submit the PT-3 application along with the necessary documents before November 15, 2023.
This move by the Pune Municipal Corporation is expected to alleviate the financial burden on residential property owners in the merged villages and ensure a fair and equitable taxation system.
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