The Chandigarh Municipal Corporation (MC) has initiated the process of preparing a list of property tax defaulters. Sources indicate that once the sector-wise list of defaulters is finalized, the civic body will issue notices to those who have not paid their taxes.
Record Property Tax Collection During Rebate Period
The MC collected a record Rs 61 crore in property tax over the past two months by offering attractive rebate benefits. This marks the highest-ever collection during the corresponding rebate periods of previous years. From April 1 to May 31, property owners were eligible for a 20% rebate on residential property tax and a 10% rebate on commercial property tax.
Penalties and Interest for Defaulters
With the rebate period now over, defaulters will be liable to pay a 25% penalty on top of the prescribed tax amount, along with interest at 12% per annum effective from April 1, 2026, until the end of the month in which payment is made. An official stated that the property tax collected by the MC plays a significant role in strengthening civic infrastructure and enhancing public services across the city.
Legal Action Against Non-Payment
Defaulters are given time as prescribed by law to pay the amount. If the amount is not paid within the stipulated time, the MC will initiate the process of attaching their properties. As per Section 138 of the Municipal Act, the commissioner is authorized to attach, sell, or seal the property of the tax defaulter.
Financial Recovery and Development Plans
During the last financial year, the Chandigarh MC faced a severe financial crunch, which halted developmental works. The corporation even failed to recarpet the city's roads. However, through efforts to generate revenue via taxes and penalties, along with additional grants received from the UT, the MC's revenue is expected to increase in the current financial year.
