The State government has extended the deadline for payment of property tax till March 31, exempting the penal interest till that date. The decision was taken as part of measures to step up property tax collection, Minister for Local Self-Governments M.B. Rajesh said here on Monday.
The government was also was of the view that the exemption is necessary considering the fact that the property tax reform was implemented this year. The exemptions are expected to lead to more people paying their tax.
Mr. Rajesh said that for those who have already the penal interest along with property tax, this amount will be adjusted in next year’s property tax. The increased revenue will aid in the developmental initiatives of the local bodies, he said. Property tax arrears for previous years can also be paid without penal interest. It will be beneficial for those who have not paid taxes for many years and owe huge sums of money.
Property tax is supposed to be paid in local self-government bodies once every six months. Penalty interest at the rate of 2% per month is levied if the tax is not settled within the stipulated time. The property tax demand for the year 2023-24 of local self-government bodies in the state is ₹2,636.58 crore.