Lucknow Municipal Corporation (LMC) reported that more than 3 lakh homeowners cleared their house tax dues during the April-June quarter, boosting collections to INR 202.4 crore. A 10% rebate on online payments spurred this trend, though around 4.33 lakh properties remain unregistered. The rebate period has shifted now covering both house tax and user charges paid online until the end of this month. With persistently high defaulter numbers, LMC is tightening recovery efforts employing interest penalties and potential account actions. These efforts build on recent reforms like GIS surveys and weekend tax collection aimed at improving compliance.
In the first quarter of FY26, the Lucknow Municipal Corporation (LMC) reported that 3,00,208 registered property owners paid their house tax dues, amounting to a total collection of INR 202.4 crore. This was out of 7.33 lakh registered properties across the city. However, around 4.33 lakh properties are yet to clear their dues, prompting the corporation to push forward with stricter recovery actions.
The 10% rebate offered on online tax payments until the end of June contributed significantly to the positive response. The civic body has extended the rebate into the current month, but with revised conditions it now applies only when both house tax and user charges are paid online.
To counter the high number of defaulters, the LMC has intensified its enforcement measures. The corporation had previously stated that from March onwards, unpaid dues would attract a 12% interest charge. In cases of substantial defaults, property owners risk account freezing and even property sealing.
In a bid to identify unassessed or under-assessed properties, LMC recently rolled out a Geographic Information System (GIS)-based survey. While this move helped uncover widespread tax evasion, it also drew criticism for alleged inaccuracies in tax assessment. Some residents complained of unexpectedly high bills, blaming technical issues with the private agency handling the survey.
To improve accessibility and encourage participation, LMC has also introduced weekend collection drives and launched an online self-assessment tool. Women property owners were additionally offered a 5% concession as part of an inclusive initiative. However, despite these efforts, recovery from several high-value defaulters including commercial property owners and affluent individuals with pending dues ranging from INR 50 lakh to INR 1 crore remains a concern.
LMC officials are also targeting unregistered properties that currently escape taxation. As per records, about 4.5 lakh such properties may exist beyond the registered 7.33 lakh, signalling a much broader gap in revenue potential.
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