Earlier, the MC had served a ₹13.61 crore property tax notice. But, after reconciliation meetings between the two authorities, the revised figure of ₹7.5 crore was reached.
The MC had stated that four property IDs referred in the earlier letter have been raised on the basis of area details submitted by the university. After going through a survey conducted by Punjab Engineering College (PEC), it has been found that the PU has not submitted the detail of the full area.
“However, after fresh communication with the PU officials, it was decided to exclude some of the properties which were earlier considered part of the university in calculating property tax,” said an MC official dealing in the matter.
The commercial properties in the PU, and some other buildings like school have now been excluded from the calculation of property tax. PU will not pay for these buildings now. Notices to these building will be served separately for payment of their outstanding tax dues.
“PU claimed that some buildings were constructed after 2004 and the commercial areas are under private persons. So, we have excluded these buildings,” said the official.
The university, it is learnt, has agreed to pay the full revised amount of the pending dues. “At present, we have not set any deadline for the payment. The MC is offering a rebate to the property tax payers depositing it for the current financial year (2021-22) by May 31. PU can also use this opportunity,” said the official.
The residential property taxpayers can avail a rebate of 20% and commercial property taxpayers 10%. After May 31, the MC will impose a penalty of 25% and 12% interest on the tax dues.
Notably, the MC had earlier issued a notice of ₹27 crore for recovery of property tax dues from the UT administration.
There are 1.06 lakh residential and commercial taxpayers in the city. In the current fiscal, the MC has so far collected ₹57 crore as property tax against the budget target of ₹48 crore.