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Chandigarh MC collects record INR 60 cr in property tax during rebate period

#Taxation & Finance News#Commercial#India#Chandigarh
Last Updated : 6th Jun, 2025
Synopsis

The Chandigarh Municipal Corporation (MC) witnessed an unprecedented rise in property tax collection during the recent two-month rebate period, amassing INR 60 crore-marking the highest-ever amount collected under the rebate scheme. This notable growth from the INR 39 crore collected during the same period last year was attributed to the civic body's decision to double property tax rates from April 2025 onwards. Over 65,000 property owners responded proactively, taking advantage of the rebate window. The majority were residential taxpayers, although commercial properties contributed a greater share due to higher tax slabs. The successful outcome was driven by streamlined payment facilities and effective communication by the MC staff.

In a significant financial development, the Chandigarh Municipal Corporation (MC) has collected a record INR 60 crore in property taxes during its recently concluded rebate period. This figure represents a substantial increase compared to the INR 39 crore collected during the corresponding window last year, setting a new high for the city's civic tax revenue.


Officials indicated that this surge in collections was primarily driven by the Chandigarh administration's move to double property tax rates starting April 2025. This rate hike created a sense of urgency among property owners, prompting them to clear their dues early to avail of the limited-time rebate. The rebate period, which lasted for two months and ended in the past week, witnessed around 65,000 taxpayers making timely payments.

Among the total taxpayers, approximately 51,000 were residential property owners. While their participation was numerically higher, officials noted that commercial property owners contributed a larger portion of the total tax revenue due to significantly higher tax rates applied to business premises.

Taxpayers had the convenience of paying through multiple channels, including e-Sampark Centres and designated bank branches. e-Sampark Centres accounted for INR 48 crore of the collections, while the remaining INR 12 crore was processed through bank facilities. The streamlined and accessible payment infrastructure helped maintain a consistent inflow of payments during the rebate window.

Municipal tax officials played a pivotal role throughout the collection drive. They were actively involved in guiding property owners, resolving queries, and encouraging timely payments, which ensured minimal disruption and smooth operations during the period.

Now that the rebate period has ended, property owners who failed to make their payments on time will incur a 25% penalty on the outstanding tax amount. In addition to this surcharge, a 12% annual interest will also be levied on delayed payments, in accordance with the municipal rules.

Looking ahead, the Chandigarh MC is targeting a total property tax collection of INR 70 crore for the ongoing financial year, excluding any arrears. The city currently has an estimated 1.42 lakh assessable properties, and the corporation expects a steady inflow of revenue as enforcement of the new tax rates continues.

The rebate scheme has proved to be a compelling incentive for early compliance, allowing both the administration and taxpayers to benefit from an efficient, transparent process.

The landmark INR 60 crore collection not only reflects growing civic awareness but also reaffirms the potential of well-timed fiscal policies. As other urban bodies observe Chandigarh's success, the city's experience may well become a blueprint for efficient municipal revenue administration across the country.

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