Curation Team
NASHIK: Effective April 1, the Nashik Municipal Corporation (NMC) will implement a new property tax assessment system for rental properties, both residential and commercial.
Under this new system, a 30% additional tax will be levied on all rental properties. This replaces the current system, which charges a 100% surcharge on residential rentals and a 400% surcharge on commercial rentals.
The new system will significantly reduce the tax burden for property owners. The taxpayers will now be required to provide the NMC with tenant information.
For example: In the existing tax structure, if the property tax for a residential property is Rs1,000, the owners pay Rs2,000 as tax if the property is on rent. However, as per the new assessment system effective from April 1, the same residential property owner will have to pay Rs1,300 as tax.
A commercial property with a Rs1,000 property tax, incurs Rs4,000 charge if rented. However, with the new assessment system, the same rented commercial property will only be taxed Rs1,300
However, the property owners will have to inform the NMC about their tenants to avail the benefit. An NMC official, while talking to TOI, said this new tax assessment system for the rented properties (both residential and commercial) will come into effect from the new financial year.
The NMC has also deployed three private agencies to carry out surveys of the properties in the city and distribute property tax bills to the taxpayers that will start working from April 1, for a period of three years. The NMC has a total of six divisions in the city, and each agency will look after two divisions.
The agencies will find out the rental properties during the survey and levy an additional 30% tax on rental properties. Moreover, these agencies will also find out the new properties. These properties will be then brought under the tax net.
