Rebates on Property Tax for Early Birds: Time to be rewarded for Timely Tax Payment

If you have always preferred to pay all your taxes on time, including property tax, then it is time for you to get a reward from the government. Last year, the government announced to offer rebates to the citizens who pay their taxes before the deadline of the assessment year. The percentage of rebates and the deadline for the payment of tax vary depending on the state to which the municipal corporation belongs.

The scheme was launched by several administrative bodies to encourage timely payment of property taxes by the citizens. These early bird incentives will, on an average, range from 5 to 10 percent of the total amount for all those who pay their taxes before the deadline. The information about the exact rates of rebates and the due dates are available on the websites of the respective Municipal Corporations. For example, if you own a property in Hyderabad, you can find the exact information about the rebates on the website of Greater Hyderabad Municipal Corporation (GHMC). And for a property in Bangalore, you should visit Bruhat Bengaluru Mahanagara Palike (BBMP) website. The rebates can also differ based on how soon the taxes are paid.

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In order to be eligible to avail the property tax rebate offered by your Municipal Corporation, you must ensure that you have no previous arrears in this relation. The Municipal Corporations of some states also offer an additional rebate up to 5% to women property holders. If you have already paid the property tax in advance, you will get a rebate for early payment by adjusting the amount in the next fiscal year.

Moreover, to save the taxpayers from the burden of standing in long queues at the tax corporation offices, the government has simplified the payment process. Now you can use the Online Tax Payment portals to pay the taxes. The government is also accepting taxes through Citizen Service Centers and over-the-counter payments through banks. The names of the listed banks and their branches will be available on the Municipal Corporation's website. You can pay the tax through cash/cheque/demand draft/pay order or via online portal through debit or credit card.

Recently, in Chandigarh, the minister for local bodies department, Anil Joshi, extended the last date for filing the property tax up to February 28. He also encouraged other officials to hold campaigns to educate general public in this regards. Last year, the Brihanmumbai Municipal Corporation (BMC) announced 1-4% rebates to the early birds. The Municipal Corporation Gurgaon (MCG) was also in the news for allowing up to 30% rebates to the citizens for the payment of 'pending' property taxes and, reportedly, collected over 138 crores in this respect.

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This rebate on property tax is a major step by the government to encourage the citizens to file their taxes on time. A number of citizens have actively participated in the deal and have filed their payments before the deadline. This is a clear indication that the scheme will go a long way in enhancing the tax payment scenario in the country.

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