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Bangalore real estate market rounds on tax plans By Sumit Kumar, Section Bangalore Real Estate
Opposition is growing to a plan to re-jig the way some Indian properties are assessed for tax, with owners rounding on local government officials.
A row has broken out over a proposed location-based classification of homes in Bangalore, which residents say is too similar to a scheme previously held back due to unpopularity. A number of activists are opposed to the change, saying it is too similar to the Capital Value System (CVS) which would have imposed a duty on homes based on their values. The Citizens Action Forum (CAF) says the new criteria would see an increase of 20 per cent on property tax in the area. The Times of India said critics claim the new plans are "old CV' wine poured into a revised SAS (Self Assessment Scheme) bottle". Real estate market players and end users are calling for a public hearing and consultation on the issue, proposed by the Bruhath Bangalore Mahanagara Palike (BBMP), which organises property tax in the area.
The proposed legislation reads: passed as specified in section 106 at such percentage not being less than 20 percent and not more than 25 percent of the taxable annual value of a building, vacant land or both." The law would come into force from "such date as the State Government may, by notification, appoint". CVS rules for property tax have been applied in some regions but were held back from Bangalore after stiff opposition earlier this year. Source: Off Plan Property Exchange, Nov-18=2008
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