Need to revise property tax formula to curb tax evasionNeed to revise property tax formula to curb tax evasion
Apnaloan.com Research Bureau
17 May 2008
Currently, the rates of property tax are high in Mumbai which lead to evasion on the part of the payers. Under the present tax formula, the tax liability is linked to the rental, said to be a discriminatory practice.
The civic body in Mumbai can follow the rating system used by the Bangalore municipal Corporation wherein the ratable value is not linked to rentals. Deduction is allowed for the depreciation of the land, depending on the age of the building and the tax is levied at 25 per cent of the net value for commercial areas.
A better tax rating system will avoid evasion of paying of property tax.
Know more about home loans on www.apnapaisa.com/loan