MADHYA PRADESH MUNICIPALITY (DETERMINATION
OF TAXABLE PROPERTY VALUE OF BUILDING LAND) RULES, 2020
PREAMBLE
In exercise of the
powers conferred by section 433 read with section 138 of the Madhya Pradesh
Municipal Corporation Act, 1956 (No. 23 of 1956) and sections 355 and 356 read
with section 126 of the Madhya Pradesh Municipalities Act, 1961 (No. 37 of
1961), the State Government, hereby, makes the following rules for
determination of taxable property value for the purpose of calculating property
tax namely:-
Rule - 1. Short title and commencement.
(1)
These
rules may be called the Madhya Pradesh Municipality (Determination of taxable
property value of building/land) Rules, 2020.
(2)
They
shall come into force from the date of their publication in the Madhya Pradesh
Gazette.
Rule - 2. Definitions.
In these rules, unless the context otherwise
requires,-
(a)
"Act"
means the Madhya Pradesh Municipal Corporation Act, 1956 or the Madhya Pradesh
Municipalities Act, 1961;
(b)
"Annexure"
means annexure appended to these rules;
(c)
"Annua
Letting Value" means annual letting value determined under Rule 5 of the
Madhya Pradesh Municipality (Determination of annual letting value of
building/land) Rules, 1997;
(d)
"Assessment
Form" means the form appended to these rules;
(e)
"Collector"
means collector as specified in India Stamps Act, 1899 (No. 2 of 1839);
(f)
"Collector
Guidelines" means guidelines issued by the collector under the provisions
of Madhya Pradesh Preparation and Revision of Market Value Guidelines Rules,
2018 for determining market values of building and lands;
(g)
"Commercial
or Industrial" means such building or land on which any business is
carried-on, shop is being run, workshop is established, trade, business is
being done or any other similar activities are being conducted or is reserved
for such activities;
(h)
"Constructed
Area" means the constructed area of each floor of the house owned by the
owner of building/land;
(i)
"Municipality"
means any Municipal Corporation constituted under section 7 of the Madhya
Pradesh Municipal Corporation, Act 1956 or any Municipal Council or Nagar
Parishad constituted under section 5 of the Madhya Pradesh Municipalities Act,
1961, as the case may be;
(j)
"Municipal
Officer" means in case of Municipal Corporation the Municipal Commissioner
or any officer or servant of the Municipal Corporation as authorized by him in
this behalf and in case of Municipal Council and Nagar Parishad the Chief Municipal
or any officer or servant of the relevant Municipal Council or Nagar Parishad
as authorized by him in this behalf;
(k)
"Residential"
means any land reserved for residential purposes or any building constructed
for residential purposes which are being used for the residential purpose,
provided that it shall not include any building which was constructed for the
residential purpose but is being used for commercial purpose;
(l)
"Taxable
Property Value" taxable property value determined under Rule 5 of these
rules;
(m)
"Year"
means, financial year which shall start from 1st April and expire on the next
31st March.
Rule - 3. Classification of Municipal Area.
Every municipality shall classify the
municipal areas according to classification of areas of the concerned district
determined under collector guidelines for relevant year:
Provided that in case of ambiguity in
classification of any area, the classification shall be validated according to
opinion of the collector.
Rule - 4. Classification of buildings and lands.
Every municipality shall classify the
building and lands situated in municipal area according to the classification
of buildings and lands determined under collector guideline for the relevant
year:
Provided that in case of ambiguity in
classification of any building or land, the classification shall be validated
according to opinion of the collector.
Rule - 5. Determination of Taxable Property Value.
Every municipality shall determine taxable
property value of every building and land situated in municipal area based on following
principles-
(1)
In
the year of notification of these rules, the taxable property value of building
or land shall be equal to annual letting value of said building and land.
(2)
In
the next year the minimum increase in property tax value of building or land
shall be according to percentage increase in market value of building and land
determined under collector guideline in the present year over the last year as
shown in example at annexure 1:
Provided that if in the current year the
increase in market value of building or land determined under collector
guideline is more than 10 percent over the previous year, the maximum increase
in taxable property value shall be limited to 10 percent:
Provided further that in case there is
reduction in Collector Guidelines rates or there is no increase in rates, the
taxable property value shall remain same as in the previous years.
(3)
(a)
The taxable property value of newly constructed properties in the municipal
limits after notification of these rules shall be determined according to the
taxable property value of that zone as defined in sub-rule (1) and taxable
property value for any year shall be calculated accordingly;
(b) The taxable property value of any land
and building after notification of these rules, whose taxable property value
has not been determined by the municipality earlier, shall be determined by the
municipality under criteria defined in sub-rule (1) according to the taxable
property value of building and land in the nearest vicinity, and for any year the
taxable property value shall be calculated accordingly;
(c) The taxable property value of buildings
and lands included in the municipal limits due to expansion of the municipal
area shall be determined by the municipality under criteria defined in sub-rule
(1) according to the taxable property value of buildings and lands in the
nearest vicinity and for any year taxable property value shall be calculated
accordingly.
Rule - 6. Adoption of resolution by municipality.
It shall be essential for every municipality
to adopt at resolution by including the following points, within maximum one
month from the date of commencement of each financial year-
(i)
Determining
rates of property tax which shall not be less than six percent and more than
ten percent of the taxable property value under the provisions of section 135
of the Municipal Corporation Act, 1956 in case of municipal corporation and
under section 127-A of the Municipalities Act, 1961 in cases of municipal
council and nagar parishad;
(ii)
Determining
rates of taxable property value of buildings and lands, per square meter per
annum for the constructed area of the buildings and per square meter per annum
area of the lands, under rule 5;
(iii)
Fixing
date within which the return and the payment of the amount of property tax by
the owners of buildings or land shall be essential;
(iv)
Determining
rate of surcharge if the return along with the amount of property tax is not
filed within the date fixed under clause (iii).
Rule - 7. Prevailing of the last year rates in case the resolution is not adopted.
If in any year the municipality does not
adopt the resolution under the provisions of Rule 6, the owners of
buildings/lands shall in an interim way deposit the amount of the tax along
with the return on the basis of last year's rate and on the declaration of the
rates for the current year the revised return along with the amount of
difference, if any, shall be deposited.
Rule - 8. Publication of the resolution.
As soon as a municipality adopts the
resolution under rule 6, the resolution shall be published by the Municipal
Officer on the website of the municipality and at least two daily newspapers
which are in circulation in the municipal area concerned for the information of
the citizens and the copies of such resolutions shall be kept in all the
offices of the municipality for the perusal of citizens.
Rule - 9. Calculation of taxable property value.
On the basis of the rates determined under
rule 5, the taxable property value shall be calculated after deducting the
following on the net taxable property value arrived as such, subject to
provisions of section 136, in case of Municipal Corporations and sub-section
(2) of section 127-A in case of Municipal Council and Nagar Parishads, the
property tax shall be payable at the rate fixed under rule 6.
For the purpose of maintenance of buildings
Ten percent, and in addition if owner of any building has installed proper
technical instruments for water recharging, ground water conservation or grey
water recycling, then owner shall be eligible for further deduction of 6
percent in addition to the 10 percent deduction for maintenance only for the
year in which technical instruments have been installed.
Rule - 10. Self-assessment of the property tax.
(1)
Every
owner of the building or land of the municipal area, shall himself calculate
the taxable property value of his property and the amount of the property tax
as per the rates of taxable property value described in resolution published by
the municipality as per the provisions of rule 8 by adding the amount of water
tax and the consolidated amount of general sanitary cess, general lighting tax
and general fire tax and any other cess determined by the State Government
under sub-section (5) of Section 132 of Madhya Pradesh Municipal Corporation
Act, 1956, in case of Municipal Corporations, and sub-section (5) of Section
127 of the Madhya Pradesh Municipalities Act, 1961 in case of Municipal
Councils and Nagar Parishads, in the amount of property tax payable and after
indicating the information in the return appended to these rules, deposit the
consolidated amount of the aforesaid taxes in the municipality within the
prescribed time alongwith the return.
(2)
If
any person is the owner of more than one house or land in the municipal area,
then every such owner shall pay the amount along with the separate return for
each building or land, provided that the consolidated taxable property value of
all his buildings and lands or both, shall be deemed to be the basis for
purpose of exemption under the provisions of clause (b) of section 136 in case
of Municipal Corporations and clause (b) of subsection (2) of Section 127-A in
case of Municipal Councils and Nagar Parishads. If the owner of buildings or
land finds any mistake in the return filed by him as above, then such owner of
building or land may submit the revised return within sixty days from the date
on which he had submitted the return and if the amount of property tax exceeds
according to the revised return, then he shall deposit such amount in the
municipality along with the revised return:
Provided that if the amount of property tax
deposited earlier exceeded according to the revised return, then he may demand
to refund such excess amount and after scrutinizing of the demand is found to
be correct, then Municipal Officer shall order to refund such excess amount.
Rule - 11. To declare systems for depositing the amount of tax.
Each municipality shall declare various
systems for depositing amount of property tax like online, counters or
designated agencies and bank branches etc.
Rule - 12. Scrutiny of the return.
If on the scrutiny of return received under
Rule 10, it is found by the municipal officer that any information mentioned
therein is not correct or is doubtful or he deems it necessary to re-assess the
taxable property value due to any reason, then the municipal officer may take
action for the re-assessment of the taxable property value under the provisions
of the Act:
Provided that in the re-assessment, the
variations up to ten percent on either side shall be ignored, but where the
variation is more than ten percent, the owner of land or building, as the case
may be, shall be liable to pay such penalty which will be equal to five times
of the amount of difference of self-assessment made by such owner and the re-assessment
made by the municipality:
Provided further that against the order
passed by the Municipal Officer under the first proviso, an appeal may be filed
before the Mayor-in-Council in case of Municipal Corporation and
President-in-Council, in case of Municipal Council or Nagar Parishad within
thirty days from the date of passing the orders, on which the Mayor-in-Council
or the President-in-Council as the case may be, after hearing the parties
concerned, shall give its decision, which shall be final:
Provided also that the scrutiny of the return
deposited under rule 10, shall be completed within three years from the receipt
of return or before the expiry of the next financial year, whichever is
earlier. After the expiry of me said period the return shall not be
scrutinized.
Rule - 13. Procedure on non-submission of return.
If any owner of building or land does not
deposit the amount of tax in the municipality along with the return, within the
fixed date, then apart from the taxable amount, the surcharge at the rate
determined under Rule 6 shall be payable.
Rule - 14. To provide details of property tax ledger to taxpayers.
As far as possible each property taxpayer
shall be provided details of his property tax ledger online by each
municipality. The ledger shall contain details of amount of property tax due
and payments made against the tax due during any period.
Rule - 15. Repeal.
All rules, sub-rules, byelaws, orders etc. if
any, on the subject, in force at the time being, shall be repealed on the date
of publication of these rules in the Madhya Pradesh Gazette:
Provided that any rule, sub-rule, byelaws or
order made or any action taken under the rules so repealed shall be deemed to
have been made or action taken under the corresponding provisions of these
rules.
ANNEXURE-1
(see
rule 5)
Year
of Notification: Determination of Taxable Property Value
|
Year of Notification
|
Taxable Property Value of Building
and Land (Rs/Sq.M)= Annual Letting Value of Present Year (Rs/Sq.M)
|
|
2020-21
|
170 (if Annual Letting Value is Rs.
170 in the year of notification)
|
Determination
of Taxable Property Value for Next Year
|
Year
|
Market Value of Building determined
under Collector Guideline (Rs/Sq.M)
|
Increase in Market Value (Percentage)
|
Taxable Property Value (Rs/Sq.M)
|
|
2019-20
|
42800
|
|
|
|
2020-21
|
46500
|
12.85
|
|
|
2021-22
|
|
192
|
APPENDIX
[see
rule 10 (1)]
Return
for the self-assessment of property tax
|
1.
|
Name of the owner of the property
(Father's/Husband's name and permanent address with Telephone No. if any)
|
|
|
2.
|
Full address of the property, where
it is situated
|
|
|
3.
|
Constructed area: [rule 2 (h)]
|
|
|
4.
|
Whether building is Pucca or Kacha
|
|
|
5.
|
Whether the property residential,
commercial, or industrial [rule 2 (k) and 2 (j)]
|
|
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6.
|
Area of open land [rule 4]
|
|
|
7.
|
Relevant per square meter rate as
determined by municipality for calculation of Taxable Property Value [rule
6(1)1
|
|
|
8.
|
Taxable Property Value as calculated
[rule 9]
|
|
|
9.
|
Building or lands owned by widows or
minors or persons subject to physical disability or mental infirmity owning
to which they are incapable of earning their livelihood, where the main
source of maintenance widows or minors or persons is the rent derived from
such buildings.
|
|
|
10.
|
Deduction for maintenance of building
and roof water harvesting (if applicable.)
|
|
|
11.
|
Buildings and lands in occupation of
owner for his residence shall be exempted from property tax to the extent of
fifty percent.
|
|
|
12.
|
In addition to exemptions under rule
9, 10 above and rule 11 give details of exemptions under section 136 of the
Madhya Pradesh Municipal Corporation Act, 1956 or section 127-A of the Madhya
Pradesh Municipalities Act, 1961.
|
|
|
13.
|
Property tax payable on taxable
property value [rule 10]
|
|
|
14.
|
Consolidated amount of General
Sanitary Tax, General lighting Tax and General Fire Tax (minimum amount
prescribed by the Government + the amount of percentage of property tax
determined by the municipality)
|
|
|
15.
|
Education Cess (As determined by the
Council)
|
|
|
16.
|
Urban Development Cess (As determined
by the Council)
|
|
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17.
|
Amount of Surcharge if payable
|
|
|
18.
|
Total amount being paid to the
Municipal Fund (Total 9+10+1 l+12+13)(In figures and words)
|
|
|
Note: (1) Extracts of the rules as
referred to in the return may be seen at the next page. (2) For each property
separate return shall be filled in.
|
Signature of the
owner/occupier of the property
Verification
I.................s/o,
w/o, d/o........................resident of......................do verify that
the information given in the return is true and that 1 am the owner/occupier of
the building/land for which I have given the return.
Signature of the
owner/occupier of the property
Receipt
Received the return
along with the copy of the receipt of amount paid/challan relating to the
year................
Signature of the
Recipient
Officer/Employee
(indicate full name
and designation)