PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA)

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EXTRAORDINARY

Published by Authority

CHANDIGARH, FRIDAY, FEBRUARY 26, 2021 (PHALGUNA 7, 1942SAKA)

( 1149 )

GOVERNMENT OF PUNJAB

DEPARTMENT OF LOCAL GOVERNMENT

(LG-3 Branch)

NOTIFICATION

The 14th February, 2021

No. 3/1/21-1 lg3/350/1.-Whereas, the Government of India has mandated that to avail additional

borrowing limit of 0.25 % of GSDP and to avail the funding in other centrally sponsored schemes of MOHUA,

floor rates for property tax in ULBs in consonance with the prevailing circle rates with a system to increase in

floor rates in line with price increase need to be notified.

Whereas, the movement to a capital valuation system that links the property assessment rates to the

prevailing collector rates, isbased on the formula given below-

Property Tax value = (Tax Base x Multiplicative Factor)

Tax Base = [(Plot area in sq. Yard x Collector Rate per square yard) + (Built-up area x Replacement

construction cost)]

Whereas, the multiplicative factor for various types of properties shall be as follows:

Type

Multiplicative factor

Residential

0.02%

Commercial

0.1%

Industrial

0.1%

Whereas, initially it may be difficult for the Citizens to find out collector rates and pay the property tax.

As such an exercise has been made where properties have been grouped in different categories based on the

collector rates. Using the representative collector rates of different categories, per square yard/ per square foot

rates have been calculated using the multiplicative factor given in the table above.

Whereas, the state has also simplified the process of filing property tax return through initiatives like

PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA)

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online calculation of the demand, digital payments, assisted assessments through CFC centers and SewaKendras.

Service of Door to door collection of property tax is also being introduced.

Therefore, in exercise of the powers conferred by sub section(1) of section 97 of the Punjab Municipal

Corporation Act 1976 ( Punjab Act No .42 of 1976),and in continuation of notification No2/4/2014-5lg3/379043/

1, dated 31st December, 2014 (read with Notification No.2/4/2014-5lg3/469637/1, dated 24thApril ,2015 , No .2/

4/2014-5lg3/714334/1,dated 16th March 2016 and No. 2/4/2014-5lg3/845413/1,dated 21st September 2016, the

Governor of Punjab is pleased to order that:

1) the floor rates table under clause (4) in the said notification be read as under :-

USE

Rate of tax as per classification and

REMARKS

Category (in rupees)

Area

A category

B category

classi-

cities

fication

Residential

Area 1

5.00 Per Sq Yard

2.00 Per Sq Yard

These rates are for built

houses

For all except single

up area of ground floor.

storey houses built

Area 2

3.00 Per Sq Yard

1.00 Per Sq Yard

For the basement, first

on land area up to

floor, other floors and

125 square Yard

Area 3

2 Per Sq Yard

vacant area, the rate will

be fifty per cent of the rates

specified in the column

no. 4/5.

Flats

Having more than 500

Area 1

5.00 Per Sq Yard

2.00 Per Sq Yard

square feet super area

Area 2

3.00 Per Sq Yard

1.00 Per Sq Yard

Area 3

2.00 Per Sq Yard

Having 100 square feet

Area 1

4.00 Per Sq Ft

3.00 Per Sq ft

These rates are for built

Commercial

land or below

Area 2

2.00 Per Sq Ft

1.50 Per Sq Ft

up area of ground floor. For

buildings

Area 3

1.75 Per Sq ft

the basement, first floor,

including

Having 1000 square

Area 1

5.00 Per Sq ft

4.00 Per Sq ft

other floors and vacant

Restaurants

feet land or below but

Area 2

3.00 Per Sq ft

2.00 Per Sq ft

area, the rate will be fifty

(except

beyond 100 square

Area 3

2.00 Per Sq ft

per cent of the rates

multiplexes,

feet land

specified in the column

malls,

Having 1000 square feet

Area 1

6.00 Per Sq ft

5.00 Per Sq ft

no. 4/5.

marriage

land or below

Area 2

4.00 Per Sq ft

2.5 Per Sq ft

palaces)

Area 3

3.00 Per Sq ft

Multiplexes,

For All

15.00 Per Sq ft

10.00 Per Sq ft

These rates are for Whole

malls etc.

Areas

Built-up Area Having

Distinct Roof and/or

partition and for all Floors.

PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 26, 2021 (PHGN 7, 1942 SAKA)

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Marriage

For All

6.00 Per Sq Yard

4.00 Per Sq Yard

These rates are for

Palaces

Areas

Whole area of Land.

Having 15 rooms of

Area 1

6.00 per square ft

4.00 per square ft

These rates will be for

below (Without star,

Area 2

5.00 per square ft

3.00 per square ft

every built up area

Hotels

one star or two star)

Area 3

4.00 per square ft

irrespective of the floor.

Having beyond 15 rooms

Area 1

9.00 per square ft

8.00 per square ft

There will be no tax on

(Without or with)

Area 2

8.00 per square ft

6.00 per square ft

vacant land and

Area 3

7.00 per square ft

parking area.

Industrial (any

Having 4000 square feet

For all

5.00 Per Sq Yard

4.00 Per Sq Yard

These rates are for built

manufacturing

land or below

areas

up area of ground floor.

unit),

Having 4000 square feet

For all

7.50 Per Sq Yard

6.00 Per Sq Yard

For the basement, first

educational

land or below

areas

floor, other floors and

institutions, and

vacant area, the rate will

Godowns

be fifty per cent of the

rates specified in the

column no. 4/5.

Government

Area 1

10.00 Per Sq Yard

4.00 Per Sq Yard

These rates are for built

Building

Area 2

6.00Per Sq Yard

2.00Per Sq Yard

up area of ground floor. For

including

Area 3

4.00 Per Sq Yard

the basement, first floor,

Buildings of

other floors and vacant

Government

area, the rate will be fifty

Undertakings,

per cent of the rates

Boards or

specified in the column

Corporations

no. 4/5.

Institutional

These rates are for built

buildings ( other

up area of ground floor.

than educational

For the basement, first

institutions,)

floor, other floors and

including

For all

7.5 Per Sq Yard

6 Per Sq Yard

vacant area, the rate will

community,

areas

be fifty per cent of the

halls/centres,

rates specified in the

sports stadiums,

column no. 4/5.

social club, bus

stands, golf

clubs, and such

like buildings

used for public

purpose

Cities shall be categorized as under : -

(a)

Cities of Amritsar, Jalandhar, Ludhiana, Patiala and SahibzadaAjit Singh Nagar

(Mohali)

– A Category

(b)

All other cities

-- B Category

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Each municipal area of A Category cities shall be classified in three areas (“Area1”, Area 2” and

“Area 3”). “Area1” shall include the posh area, “Area 2” shall be less posh/developed area, and

balance area shall be classified as “Area 3”. Municipal area of B Category cities shall be classified

in two areas (“Area1” and “Area 2” ). “Area1” shall include the posh area, and balance area shall

be classified as “Area 2”. These classifications shall be finalized by a committee consisting of

Secretary/Principal Secretary Local Government, Director Local Government (who shall be

conveyer of the meeting), Mayor of the concerned City, Commissioner of the concerned municipal

corporation and Deputy Commissioner of the concerned District in which the city falls. This

classification shall be complete within the fortnight from the date of issue of notification and shall

be published in the Punjab newspaper and also on notice boards of various places in the municipal

area, by commissioner of the concerned municipal Corporation.

Area classification shall be strictly based on the collector rates.For A Category cities,Area1 shall

be posh areas with higher collector rates; Area 2 shall be less posh / less developed areas with

average collector rates; balance area shall be classified as Area 3. For B Category cities, Area1

shall be posh areas with higher collector rates; balance area shall be classified as Area 2.

Tax rates to increase by 5% annually and to be reviewed every 3 years to further rationalize based

on the fresh collector rates.This shall be effective form the year 2021-22.

Process of filing property tax return shall be simplified through initiatives like online calculation of

the demand, digital payments, assisted assessments through CFC centers and SewaKendras.

Service of Door to door collection of property tax shall also be introduced.

These rates shall be applicable to all Municipal Corporations in the state of Punjab.

This issues as per the approval accorded by the competent authority.

AJOY KUMAR SINHA, IAS,

Chandigarh

Principal Secretary to the Government of Punjab,

The 14th February, 2021

Department of Local Government.

2237/2-2021/Pb. Govt. Press, S.A.S. Nagar