Sutharsanan (Specilaist) 12 April 2013

Vaccant land tax is applicable to agriculture land

Dear Sir,

My name is Sutharsanan and my father in law is planning to construct a house for 2300sqft area (out of total land area is 21780sqft) falling under the Town Panchayat at Gudalur, Tamil Nadu.

The above land was purchased by him on March of 1990 and He was using the land for agriculture purpose, Cultivating Panana, Termeric, Tea plant and etc.

Further, He applied for House construction approval from Town Panchayat office and he obtained the Forest approval also. Now Town panchayat Commission insisting orally us to pay the Vaccant Land Tax from Mar-1990 onwards for whole land of 21780sqft calculating per year 30piase/sqft and comes to 143748INR for 22years. This is so surprise and we didn't predicted for our plan and this is 10% of our total construction plan.

In this above, We required your valuable inputs on the following question.

1) Vacant Land tax is applicable to pay for Agriculture land. if yes/no, what is backups.

2) What is calculation method if applicable.

3) 143748INR is very huge, Is ther any exemption available?.

4) Is there any best way to go for the Construction approval.

thank you!!.

Regards

Sutharsanan

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 12 April 2013

Land tax is a tax levied on the owners of land in NSW as at midnight on 31 December of each year. In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax. You may be liable for land tax if you own or part-own:

vacant land, including vacant rural land
Annual valuations for land tax are made by the Valuer General, based on the value of your land on 1 July prior to each land tax year. These valuations are separate from those made approximately every three years for local government rating purposes. Up to 2006 you were assessed using the annual valuation. This was called the adjusted land value.

From the 2007 tax year onwards, the taxable value of each parcel of land you own will generally be determined by the average of the land value for the current tax year and the land values that applied for the two preceding tax years. If the land is less than three years old, the average of the years available is used.