Curation Team
CHANDIGARH: With property tax rates increasing significantly from April 1, Chandigarh residents and businesses will be keen to utilise the municipal corporation’s annual two-month rebate scheme.
The municipal corporation has scheduled the rebate period from April 1 to May 31, though the official notification is pending. The tax rates have been hiked for the first time since 2020.
During this period, residential property owners can avail a 20% discount, while commercial property owners will receive a 10% reduction. Late payments will incur a 25% penalty on the total tax amount, along with 12% interest charges.
“The public notice will also be issued soon regarding the rebate period for taxpayers, so that more and more taxpayers can avail themselves of this facility. We urge taxpayers to pay their respective tax in this rebate period to escape penalty,” officials, not wanting to be named, said.
The administration expects substantial revenue from property tax during the initial two months of fiscal year 2025-2026.
This year, the corporation plans to distribute tax forms directly to approximately 1.42 lakh properties, rather than utilising the India postal department’s services.
“We are in the final stage of printing the property tax forms. If the taxpayers have any issue or ambiguity related to any manner regarding the calculated amount or otherwise, they are free to contact the tax office concerned to get the issues sorted,” officials said.
Property tax remains a vital source of revenue for the municipal corporation, showing steady growth over recent years. Given the substantial increase in rates, the corporation anticipates enhanced revenue from this segment.
Chandigarh administration on Monday notified a sharp increase in residential and commercial property tax rates. The UT notification stated, “For the assessment year 2025-26, the property tax leviable on residential sites and buildings shall be increased by three times the rates already specified by the Chandigarh administration. For CHB flats, cooperative house building societies, and other residential flats (excluding SCFs) having a total covered area of 500 square feet and above falling within MC limits (irrespective of zones), the existing rate was Re 1 per square foot per annum, which will now be Rs 3 per square foot from the 2025-2026 financial year.”
Similarly, for commercial and industrial properties, property tax will be charged at 6% of the annual rateable value (ARV) for 2025-2026. Service charge category properties will continue at 3% ARV.
High Income
FY——————– Property Tax
2022-2023—————————-Rs 68.67cr
2023-2024—————————-Rs 55.59cr
2024-2025—————————-Rs 58.60cr
