KDMC on property tax

The central suburbs of Mumbai are witnessing change as civic body commissioners are displaying positive aggression in matters of public interest. While Thane’s municipal commissioner Sanjeev Jaiswal ordered demolition of legal and illegal structures to unclog & clear the station road area, in a fresh move, KDMC’s commissioner E Ravindran took property tax defaulters to task by attaching their properties last week.

On March 8, the Kalyan Dombivli Municipal Corporation (KDMC) sealed offices of highest property tax evaders in the city which include prominent names like Roop Sangam shop, theaters at SM5 mall, JP resort and even the office of Poddar Developers. They have defaulted on payment of property tax not only for the year 2015-2016 but for past many years.

“In the past, these defaulters got away without paying their dues as the earlier municipal commissioners refrained from taking strict action. But now, we have strict orders to seal and auction the properties of tax evaders,” said a KDMC official who refused to be named adding that the current commissioner E Ravindran spares nobody and this was amply evident during the demolition drive near Kalyan station for road widening in January this year.

The outstanding amount of unpaid tax for each of the above defaulter is JP resort Rs10.16 crore, SM 5 theaters Rs. 2.58 crore, Roop Sangam shop Rs. 70 lac and Poddar Developers Rs. 89, 22,792. KDMC will auction the properties confiscated from tax evaders this week. “If they pay off their dues along with penalty, their properties will be unsealed,” added the official.

Important Documents to be checked before purchase of a property

Following are a list of crucial documents that one needs to check before buying a property:

(i) Authorities’ approval on Land titles and for construction permits

•            One should ensure that the land is owned by the builder.
•            Find out if the conveyance of the property is in favour of seller.
•            Urban Land Ceiling & Regulation Act clearance certificate has been obtained by the builder. Obtaining permission for using land towards non-agricultural purpose.
•            Municipal authorities’ approval of original plan is in place.
•            Commencement Certificate has issued by municipal authorities.
•            Issuance of occupation certificate by the authorities indicating the building is complete and fit for occupation.

 (ii) Title Clearance Certificate  

•            A title clearance certificate must be obtained from the advocate certifying that the intended property for purchase is unencumbered with a clear marketable title.

(iii) Society clearance and membership

•            NOC to be obtained from the society for transfer or sale of flat.
•            Society is paid the necessary transfer charges.
•            Transferring the name of the buyer in the share certificate obtained by the society.

(iv) Property tax records

Check if the seller has paid the property tax and other related taxes as set by the local civic authority upto the registration date of the purchased property. One can obtain certified copies of the property tax, water tax, water charges and electricity charges from the city’s sub-registrar’s office.

(v) Sales agreement

While executing a sales agreement one should check for the following:

• The serial number of the flat/floor is clearly indicated.
• The purchase condition of the property as well as the carpet area/built-up area is clearly indicated.
• The agreement should have the floor plan in the annexure specifying all the amenities (flooring, door, window, etc).
• The amount at which it is sold is mentioned.
• The agreement is signed and stamped laying down the payment schedule.
• The original stamped receipts and previous sale deed in case of a resale property must be provided by the seller.

(vi) Stamp duty and registration

• The stamp duty to be paid is determined on the agreement or market value of the property, whichever is higher.
• Under the provisions of the Indian Registration Act, the agreement is to be registered with the sub-registrar within a period of four months from the date of its execution.
• One should check the stamp duty and registration charges applicable as it differs from state to state across the country.
• Taking possession of the flat.
• The possession of the flat must be done as per the date specified in the agreement.
• To check if there is a provision within the agreement to provide a refund in the eventuality of the seller being unable to provide possession of the property on the date agreed upon.
• Amenities, as stated in the agreement, are present along with running supply of electricity and water.

Property Tax

This time Thane Municipal Corporation (TMC) is going to be tuff on property as well as water tax offenders because now corporations planning to release the list of property tax evaders in public. With a need to meet the fiscal deficit now municipal corporations is planning to take rough steps against those who have not cleared their property tax. However; The KDMC (Kalyan Dombivli Municipal Corporation) is ready to confiscate private belongings such as; fridge, television and washing machines and the TMC (Thane Municipal Corporation) has decided to make the names of property tax defaulters public.

According to Sanjeev Jaiswal, The Chief of TMC, “Soon we will release the list in public and it will contain the name of all those who have not cleared their property tax and it will applicable on those whose tax billing amounts are running in lakhs and even crores because from past many years such people haven’t filled their taxes”. The more he added that the water connection of water tax defaulters will be disconnected till the payment of bills. There are number of citizens who avoid paying their water and property tax and now corporation is ready to make tough decisions.

For the fiscal year 2015-16, the TMC has set the target of Rs 350 crore only through the property tax collection. According to KDMC officials, “It could be difficult time for tax defaulters because there are many defaulters who are waiting for the amnesty schemes of KDMC to pay the taxes, where they can get away without paying the penalty on late tax payments. The KDMC has announced that they could be confiscate household belongings of property tax defaulters.