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Ashey   04 March 2009

Property Tax Assessment Dispute - Huge increase in tax at Bangalore

 Sirs / Madams,

          My boss, who resides at Madurai-Tamilnadu, holds non-agricultural lands to an extent of 2 arces and 21 Guntas at Pattandoor Agrahara Village, K.R.Pura Hobli, Bangalore East Taluk, Banglore District with a 300 Sq.Ft. building constructed thereon is used for staff residence. We paid a sum of Rs. 7000 (Seven thousand)as tax for the period 2006-2007 and when we repeatedly asked for the amount of tax to be paid for the period 2007-2008 we were told that the tax is to be revised and we will receive fresh demand notice after the assessment.
 
Two days back when we contacted the officials they informed us that the tax amount is fixed as Rs. 1,23,000 (One lakh twenty three thousand) based on the guideline value of the land and demanded us to pay it before 31st March 2009.
 
 
1)    Whether can I insist on furnishing me a demand notice including the assessment details? If so, how ?
2)    Whether the tax amount demanded by them is in accordance with law?
3)    Whether tax can be assessed based on the guideline value instead of the annual rental value? If so, on what authority?
4)    What happens if we don’t pay the tax amount, as we didn’t receive any demand notice?
5)    Are we entitled to receive demand notice and reassessment particulars before payment of tax?
6)    Can the authority hike tax to an extent of 17 time the prevailing amount?
7)    Can we challenge the assessment, if so in what ways ?
8)    Have we got any other legal remedy ?
 
Kindly enlighten us and provide us any information that may be helpful to us


Learning

 3 Replies

Nu.Delhi.Law.Fora. (Advocate-on-Record Supreme Court of India)     04 March 2009

Dear Sir


The immediate relief you may get is a stay on such demand notice issued by treasury. Although, I dont have correct idea as to house tax provisions applicable, yet, I am of the view that writ is correct remedy in all such cases. Secondly, as per Constitution of India, no tax can be levied expect legal sanction. Notification/Circular/Explanation cannot enlarge the scope of or create a tax liability on any assessee. Hence, such move by the State Govt. is unconstitutional and illegal. You have fair chance of getting a favourable order.


 


(Guest)

BBMP HAS ISSUED A GUIDELINE IN A BOOK AND CLASSIFICATION OF ZONE AND RATE OF THE TAX AND PROCEDURE TO ASSESS THE PROPERTY TAX. PLEASE REFER THE BOOK AND ACT ACCORDINGLY.

Ashey   05 March 2009

Thank you Mr. Haroon Motiwala and Rabin Majumder..


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