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Pune and Patna municipal bodies have taken contrasting paths in property tax collection this fiscal. Pune extended its discounted payment deadline to July 7 due to bill distribution delays, collecting INR 1,244.5 crore by June 30-about INR 100 crore less than the same period last year. Activists are pushing for further extensions, citing tech glitches and unresolved rate issues in newly merged areas. Meanwhile, Patna collected INR 40 crore in Q1 FY26-28% of its annual target-offering a 5% rebate until June 30 and adding tech-driven solutions like QR-coded notices, chatbot payments, and extended hours. These varied strategies reflect the challenges in maximizing tax revenues to fund urban services.
Civic bodies in Pune and Patna are demonstrating differing approaches and results in property tax collection during the initial months of the current fiscal year. Across these two major Indian cities, authorities are striving to optimize revenue generation for urban services through distinct strategies involving payment deadlines, discounts, and collection methods, reflecting varied challenges and successes. Advertisement
In Pune, the Municipal Corporation (PMC) extended the deadline for paying property tax at discounted rates to July 7, 2025. This decision came from the original June 30 deadline and was granted due to delays in distributing property tax bills. The PMC offers a 5-10% discount to property owners who pay their tax early. An initial month was provided this year due to billing delays, then an extra week was added. As of June 30, 2025, PMC had collected approximately INR 1,244.50 crore from 7.10 lakh properties.
However, its overall revenue generation for the first quarter of fiscal year 2025-26 dropped by about INR 100 crore, compared to INR 1,350 crore collected in the same period of 2024-25. Activists are calling for more extensions, citing official website glitches and ongoing approval issues for taxpayers using specific forms, arguing that mismanagement in bill distribution warrants more time. There are also delays in tax recovery from recently merged areas, where residents demand reduced rates. The PMC is considering an amnesty scheme for these merged areas due to lack of clarity on rateable values, despite state government directives for rate caps.
On the other hand Patna Municipal Corporation (PMC) collected INR 40 crore in property tax during the first three months of the 2025-26 fiscal year. This collection accounts for over 28% of its annual target of INR 141 crore. In the previous fiscal year (2024-25), Patna PMC collected INR 117 crore.
To encourage payment, a 5% rebate was offered for prompt payment until June 30. The PMC also extended operating hours for tax counters, including Sundays and public holidays, issued demand notices with QR codes for easy viewing of dues, and provided online payment options through its website and chatbot. For payments made between July 1 and September 30, no discount or penalty applies. A 1.5% penalty will be charged for late payments from October 1 to March 31. Patna PMC covers 108.87 square kilometers and nearly 5 lakh properties across 75 wards and six circles.
These contrasting approaches in Pune and Patna highlight the diverse challenges faced by municipal bodies in optimizing property tax collections. Their experiences underscore the need for adaptable strategies to secure this vital revenue, essential for sustaining urban infrastructure and services.
5th Jun, 2025
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