Monday 26 September 2011

Soon, rent won't decide property tax


MUMBAI: Here's some good news for the owners of nearly one lakh properties rented out in the city. Monthly rents, or leave-and-licence charges, for these properties will soon not play a role in deciding the tax on them.

The state legislative council on Friday introduced changes in provisions related to the proposed switchover to a capital value-based tax assessment regime, which was initiated last April.

Collection of data on all properties in the city and the determination of the tax under the new regime is under process and is expected to be completed by the year-end . Under the existing rateable value system, rents are taken into account while calculating the tax of a tenanted property.

But as per the capital value system, various factors will be considered. While initiating the change in 2010, riders were put on the maximum rise in tax over rateable value rates.

No comments:

Post a Comment