Ludhiana News- MCL to start property tax recovery drive from Wednesday onward


Ludhiana, October 1, 2013: By replacing the house tax, Punjab Government has imposed property tax in the state. MC Ludhiana would start its recovery drive from Wednesday onward and since this tax is based on self-assessment method citizen can easily calculate the amount they will have to pay as property tax. MC officials would also help in assessing this tax to the public.

According to Joint Municipal Commissioner, Ludhiana, a mega training camp to interact with industrialists, NGOs, Bar associations and general public will be held on October 2 at 3 pm at Guru Nanak Dev Bhawan, Ludhiana. 

Property Exempted from Property Tax

·         Religious places, cremation grounds, cow sheds, historical buildings, registered charitable institutions (those are already exempted from income tax under Act 1961), Government schools and colleges including Government schools availing grant from Government, Government hospitals and land being used for agriculture would be exempted from this tax.

·         Freedom fighters, who are getting pension from central or state Government have been exempted

·         BPL families (Having ID cards) need not to pay this tax

·         Widows would get annual rebate of Rs 5,000 in their total property tax and physically challenged (who get benefit under section 80 U of 1961, income tax) would also get Rs 5,000 rebate in property tax.

Formula to calculate Property Tax

Residential buildings

50 square yards (construction 450 square feet)

Rs 50


100 square yards (construction 900 square feet)

Rs 150

In case the square feet is more than 450 Sq.ft for 50 Sq. yards Property and more than 900 Sq.ft for 100 Sq.Yards Property                                           


0.5% of the ARV


From 101 square yards till 500 square yards

0.5% of the ARV


Above 500 square yards

1% of ARV


Buildings on rent (residential)

7.5% of the annual rent

Non- Residential Building  

Self Commercial Building                                              3% of ARV

Rent Commercial Building                                             10% of Annual Rent

Vacant Plot                                                                             0.20% of total ARV                                               
Annual Rateable Value (ARV)                                  

5% of cost of land + 5% of cost of construction – 10% of depreciation (to the cost of Construction only)

Cost of Land

Square Yards of the unit x collector rate of the property.  

Cost of construction

Covered area in Sq.ft. x cost in Sq.ft.

Cost in Square ft.

Rs.500/- for Pucca construction, Rs. 300/- for semi pucca and Rs. 100/- for Kacha

For multi storey buildings cost of land will be calculated as basement 20% of collector rate, ground floor 100%, upper basement 75%, lower basement 75%, first floor 60%, second floor 30% and other floors 30% of collector rates. 

Citizen who would pay their property tax before November 30, 2013 would get 10% rebate in the total amount of the tax

MC, Ludhiana has formed 42 teams of officials who would visit each and every property for creating awareness regarding this tax and they would also help in filling the self assessment forms.

A mobile van would be moving in the city and the employees in the van would help in filling self assessment forms and every possible help to the tax payers. 

For easy payment of the tax and complete information regarding property tax, one can also log on get essential information. The department would also upload the forms on the website and citizen can fill the forms online. The online payment facility would also be launched shortly.

People can also file property tax return through registered post to Tax superintendent of A zone at room number 11. Besides this, citizen can pay tax at 20 sub zone offices of MC as per their convenience.

Help desk would also be established in every zonal office of MC. One centralized help desk has been established in the headquarter i.e. office A zone. The residents can inquire about this tax and calculation through helpline number 97800-22410.

The one who would not pay their tax by 30 November, 2013 will not be given 10% rebate upto 31 December, 2013. After 31 December, 2013 they would have to pay tax with 25% penalty and those who would not clear the tax amount by 31 March, 2014 would be levied upon with 50% penalty and 18% interest.

Tuesday, October 1, 2013