Landlords who donít declare tenants face stiff action
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South civic body says it has data on property tax evaders, writes to RWAs
Home owners who have rented out their property but not declared it are in for trouble, with the South Municipal Corporation gearing up to act against such defaulters.
The tax for rented property is double the tax for self-occupied spaces, and the civic agency had decided to rein in all such home and farmhouse owners.
In a letter dated August 14, 2012, the corporations asked the residents' welfare associations of South Delhi to sensitise home owners against tax evasion.
The agency has also drawn up a list of such evaders, after obtaining information from the Registrar's Office. Action will be taken against those who have underpaid their taxes for 2011-12. Officials said names of a few prominent persons are also on the list.
"It has come to our notice that there are many property owners who have rented their residential properties but they are either not paying property tax or paying less than the applicable tax for rented out residential properties, thus avoiding payment of appropriate property tax and causing revenue loss to the corporation. Thus, property tax department of South Delhi urges the residents not to follow malpractice and pay proper tax," the letter said.
This letter, officials said, was a "gentle reminder" to all such defaulters. If the problem persists, strict action will be taken in accordance with the municipal rules.
According to the Delhi Municipal Corporation Act, if the evasion exceed a sum of Rs 10 lakh, the offender can face rigorous imprisonment of a minimum three months and a maximum seven years along with a penalty that is not less than 50 per cent of the total sum.
For other cases, a rigorous imprisonment of one month to three years can be handed out. The penalty will not be less than 50 per cent of the amount evaded.
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