Lucknow. The Uttar Pradesh government will now levy house tax in small cities, Nagar Palika Parishad and Nagar Panchayats also under the self-government system. Building owners will now be able to determine their own house tax. The cabinet of Chief Minister Yogi Adityanath has approved the Uttar Pradesh Municipality (Tax on Annual Value of Building or Land or both) Rules 2021.
The Uttar Pradesh Municipal Corporation (Property Tax) Rules-2000 is applicable for the collection of property tax in the municipal corporations of Uttar Pradesh. Municipality councils and nagar panchayats had no rules for taxing the annual value of a building or land or both. Due to absence of rules for Nagar Palika Parishad and Nagar Panchayats, an arbitrary attitude has been adopted in the collection of property tax, hence the building or land or both in the Nagar Palika Parishad and Nagar Panchayats as per the arrangement given in Uttar Pradesh Municipality Act 1916. The Uttar Pradesh Municipality (Tax on Annual Value of Building or Land or both) Rules-2021 has been approved with a view to simplify and make the process of taxation at annual value of Rs.
Rent rate will be fixed region-wise: After the issuance of the rules, the rent rate will be fixed in the Nagar Palika Parishad and Nagar Panchayats. The board will have the authority to decide this. The annual rent (ARV) will be fixed by multiplying the area-wise rent rate and the built-up area of the building by 12. The body board will decide on what percentage of its total will be taken as property tax.
Heavy exemption on old buildings: The new rules provide a big relief to the old building owners. For example, if the building owner is living in buildings older than 10 years, then he will get 25 percent discount. Similarly, 32 and half percent will be given on 10 to 20 years and 40 percent discount will be given on buildings older than 20 years. If the building owner does not live in such buildings and is renting, then 25 per cent will be levied on 10 year old building, 12 and half per cent more house tax on 10 to 20 year old building, but no additional tax on 20 year old buildings. Will go.
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