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

1153

EXTRAORDINARY

Published by Authority

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

( 1153 )

GOVERNMENT OF PUNJAB

DEPARTMENT OF LOCAL GOVERNMENT

(LG-3 Branch)

NOTIFICATION

The 14th February, 2021

No. 3/2/21-1 lg3/351/1.-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.

Assuch an exercise has been madewhere properties have been grouped in different categories based on the

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

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

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

1154

Whereas, state has also simplified the process of filing property tax return 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 is also being introduced.

Therefore, in exercise of the powers conferred by sub clause (ii) of clause (a) of sub section(1) of

section 61 of the Punjab Municipal Act 1911 ( Punjab Act No. 3 of 1911), and in continuation of notification

No.2/4/2014-5lg3/379043/1, dated 31st December, 2014 (read with Notification No.2/4/2014-5lg3/379042/1,

dated 24th April, 2015, No. 2/4/2014-5lg3/714250/1, dated 16th March 2016,No .2/4/2014-5lg3/845389/1, 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

rates (in rupees)

Area

B category

C category

classi-

cities

fication

Residential

Area 1

2.00 Per

1.00 Per

These rates are for built

houses

For all except single

square yard

up area of ground floor.

storey houses built

Area 2

1.00 Per

0.50 Per

For the basement, first

on land area up to

square yard

floor, other floors and

125 square Yards

vacant area, the rate will

be fifty per cent of the

rates specified in the

column no. 4/5.

Flats

Having more than 100

Area 1

2.00 Per

square feet super area

square yard

Area 2

1.00 Per

0.50

square yard

Having 100 square feet

Area 1

3.00 Per square Ft

2.00 Per square ft

These rates are for built

Commercial

land or below

Area 2

1.50 Per square Ft

1.00 Per square Ft

up area of ground floor.

buildings

For the basement, first

including

Having 1000 square

Area 1

4.00 Per square ft

2.00 Per square ft

floor, other floors and

Restaurants

feet land or below but

Area 2

2.00 Per square ft

1.00 Per square ft

vacant area, the rate

(except

beyond 100 square

will be fifty per cent of

multiplexes,

feet land

the rates specified in

mails,

Having 1000 square feet

Area 1

5.00 Per square ft

3 Per square ft

the column no. 4/5.

Multiplexes,

land

Area 2

2.50 Per square ft

1.50 Per square ft

malls,

marriage

palaces)

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

1155

Multiplexes,

For All

10.00 Per

8.00 Per

These rates are for

malls etc.

Areas

square ft

Whole Built up area

having distinct roof

and/or partition and for

all Floors.

Marriage

For All

4.00 Per

2.00 Per

These rates are for

Palaces

Areas

square yard

whole area for Land.

Having 15 rooms of

Area 1

4.00 per square ft

2.00 per square ft

These rates will be for

below (Without star,

Area 2

3.00 per square ft

1.5 per square ft

every built up area

Hotels

one star or two star)

irrespective of the floor.

Having beyond 15 rooms

Area 1

8.00 per square ft

7.00 per square ft

There will be no tax on

(Without or with)

Area 2

6.00 per square ft

5.00 per square ft

vacant land and

parking area.

Industrial (any

Having 4000 square feet

For all

4.00 Per

3.00 Per

These rates are for built

manufacturing

land or below

Areas

square yard

up area of ground floor.

unit),

Having 4000 square feet

For all

6.00 Per

4.50 Per

For the basement, first

educational

land or below

areas

square yard

floor, other floors and

institutions, and

vacant area, the rate will

Ggodowns

be fifty per cent of the

Undertakings,

rates specified in the

boards or

column no. 4/5.

corporations

Government

These rates are for built

Building

up area of ground floor. For

including

the basement, first floor,

Buildings of

Area 1

4.00 Per Sq Yard

2.00 Per Sq Yard

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.

Area 2

2.00 Per Sq Yard

1.00 Per Sq Yard

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

6.00 Per Sq Yards

4.50 Per Sq Yards

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

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

1156

Cities shall be categorized as under : -

(a)

All Class I Municipal Councils

- B Category

(b)

All Class II Municipal Councils,

Class III Municipal Councils and all Nagar Panchayats-C Category

Each municipal area shall be classified in three areas (“Area1”, 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 Director Local Government, President or Administrator of

concerned Municipality, Executive officer of the concerned Municipality and concerned Regional

Deputy Director Local Government, who shall be conveyer of the committee. 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 the

Executive officer of the concerned municipality.

Area classification shall be strictly based on the collector rates. Area1 shall be posh areas with

higher collector rates; the 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 Councils and Nagar Panchayats 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