In a move that has stirred controversy among residents, the Belagavi City Corporation has done substantial increase in property taxes for the upcoming fiscal year. According to the newly released tax calculation, property owners across the city are facing an average increase of over 50% in their tax bills compared to the previous year.
This came as a shock to many residents, who were taken aback by the steep rise in their tax obligations. A comparison of the old and new tax rates reveals staggering figures:
| Name of Property | OLD TAX (Rs) | NEW TAX(Rs) | % Increase | Discount @ 5% |
| Property -1 | 1760 | 2745 | 56% | 87.1 |
| Property 2 | 3300 | 5349 | 62% | 183.3 |
These figures have raised concerns among taxpayers, prompting questions about the reasoning behind such a significant hike. Many are now questioning whether it is advantageous to pay the taxes in April to avail of the nominal discount offered by the Corporation. People who got Challans and went to the Corporation office to enquire were told, this is what it is; Pay or don’t pay that is your problem.
The discount is on the Main tax and not the CESS Part which is more….
Different types of CESS
- Health cess 15%
- Library Cess 6%
- Beggary Cess 3%
- Urban Transport Cess 2%
- SWM CESS – 480 Variable
- SWM Service Charges Variable
You don’t get any discount on this even if one pays in April or whatever month in which a rebate is allowed.
An investment advisor said it is better to pay the Tax in March 2025 as you will earn more money investing the said Property Tax in question in some Deposits or Mutual Funds rather than taking that meager discount.
This year, the government announced a 3% increase in property taxes. The new rates will be calculated based on the Ready Reckoner rates. However, there are some concerns regarding the application of these rates:
Ward-Level Application: Clarity is needed on how Ready Reckoner rates are applied within a ward. Is it a single rate for the entire ward (average, highest, or specific to each location)?
Ward Number Discrepancies: Some property tax bills reference old ward numbers, while Ready Reckoner rates might be listed with new ward numbers. This discrepancy can be confusing, especially when ward boundaries have changed and there is no clarity whatsoever on which is correct.
For example, Old Ward 17 encompasses SV Colony and Maratha Colony, while New Ward 17 for these areas is Jadhav Nagar.
These issues require clarification from the government to ensure transparency and fairness in property tax assessments.
Speaking on the matter, several residents expressed their dismay, emphasizing the need for transparency and consultation with taxpayers before implementing such drastic changes. “We understand the need for taxes to support civic amenities, but such a sudden and substantial increase is unjustified. We urge the authorities to provide a proper explanation for this alarming spike,” said one concerned citizen.
One possible explanation being debated is the impact of changes in Ready-Reckoner Rates. While some speculate that the increase may be linked to adjustments in property valuations, others argue that more clarity is needed from the City Corporation.
The sitting corporators aren’t raising any voices in this regard which is again astonishing.
In response to the growing unrest among taxpayers, there is a call for the Belagavi City Corporation to issue a detailed press note explaining the rationale behind the tax hike. Honest taxpayers are eager for reassurance and transparency regarding how their contributions are being utilized for the betterment of the city.
As the debate continues, residents are left grappling with the prospect of higher tax burdens and are urging authorities to address their concerns promptly. The coming days are likely to see increased scrutiny and demand for accountability from the Belagavi City Corporation as they navigate through this contentious issue.
Aur karo Congress ko vote
Thanks for your detailed analysis and suggestion.
Editor ji. Please help the General reader understand what is this Ready Reckoner rates etc? As young kids read your site, an educative writing is appreciated.
Ready reckoner rates, also known as circle rates or guideline values, are the minimum prescribed rates at which the sale or transfer of a property can occur in a particular area. These rates are set by the government or local authorities and serve as a basis for calculating the stamp duty and registration charges during property transactions.
The purpose of ready reckoner rates is to prevent undervaluation or underreporting of property prices during transactions, which could lead to tax evasion. These rates are typically revised periodically to reflect changes in market conditions and property values.
Property transactions in many jurisdictions are required to be registered with the government, and the stamp duty and registration charges are calculated based on the ready reckoner rates or the actual transaction value, whichever is higher. This ensures that the government receives fair revenue from property transactions and helps maintain transparency in real estate dealings.
Overall, ready reckoner rates play a crucial role in property transactions by providing a standardized basis for determining the value of properties for taxation purposes.
Vacant lands taxes have been increased to the extent up to 300-400%.
Last year it was Rs. 745 now its reflecting as Rs. 2458. Don’t understand the logic of steep hike on vacant lands.