PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA)

1890

EXTRAORDINARY

Published by Authority

CHANDIGARH, MONDAY, APRIL 26, 2021 (VAISAKHA 6, 1943SAKA)

( 1890 )

To be substituted by Notification bearing same date and No.

GOVERNMENT OF PUNJAB

DEPARTMENT OF LOCAL GOVERNMENT

(LG-3 Branch)

NOTIFICATION

The 14th February, 2021

No. 3/1/21-1lg3/350/1.-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, is based 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

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

PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA)

1891

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 No. 2/4/2014-

5lg3/379043/1, dated 31st December, 2014 (read with Notification No. 2/4/2014-5lg3/469637/1, dated 24th

April, 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:

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

USE

Rate of tax as per classification and Category (in rupees)

REMARKS

Area

A category

B category

classification

cities

Residential

For all except

Area 1

5.00 Per Sq Yard

2.00 Per Sq Yard

These rates are for built

houses

single storey

up area of ground floor. For

houses built on

Area 2

3.00 Per Sq Yard

1.00 Per Sq Yard

the basement, first floor,

land area up to

other floors and vacant

125 square Yard

Area 3

2 Per Sq Yard

area, the rate will be fifty

per cent of the rates

specified in the column

no. 4/5.

Flats

Having more

Area 1

5.00 Per Sq Yard

2.00 Per Sq Yard

than 500 square

Area 2

3.00 Per Sq Yard

1.00 Per Sq Yard

feet super area

Area 3

2.00 Per Sq Yard

Commercial

Having 100

Area

4.00 Per Sq Ft

3.00 Per Sq ft

These rates are for built

buildings

square feet land

Area 2

2.00 Per Sq Ft

1.50 Per Sq Ft

up area of ground

including

or below

Area 3

1.75 Per Sq ft

floor. For the basement,

Restaurants

first floor, other floors and

(except

Having 1000

Area 1

5.00 Per Sq ft

4.00 Per Sq ft

vacant area, the rate will

multiplexes,

square feet

Area 2

3.00 Per Sq ft

2.00 Per Sq ft

be fifty per cent of the rates

malls, marriage

land or below

Area 3

2.00 Per Sq ft

specified in the column

palaces)

but beyond 100

no. 4/5.

square feet land

Having beyond

Area 1

6.00 Per Sq ft

5.00 Per Sq ft

1000 square

Area 2

4.00 Per Sq ft

2.5 Per Sq ft

feet land

Area 3

3.00 Per Sq ft

Multiplexes,

For All Areas

15.00 Per Sq ft

10.00 Per Sq ft

These rates are for Whole

Malls etc.

Built-up Area having

Distinct Roof and/or

partition and for all Floors

Marriage Palaces

For All Areas

6.00 Per Sq Yard

4.00 Per Sq Yard

These rates are for Whole

area of Land

Industrial (any

Having 4000

For all areas

5.00 Per Sq Yard

4.00 Per Sq Yard

These rates are for built

manufacturing

square yards

up area of ground floor. For

unit), educational land or below

the basement, first floor,

PUNJAB GOVT. GAZ. (EXTRA), APRIL 26, 2021 (VYSK 6, 1943 SAKA)

1892

institutions, and

Having beyond

For all areas

7.50 Per Sq Yard

6.00 Per Sq Yard

other floors and vacant

Godowns

4000 square

area, the rate will be fifty

yards land

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 including

Area 2

6.00Per Sq Yard

2.00Per Sq Yard

up area of ground floor. For

Buildings of

Area 3

4.00 Per Sq Yard

the basement, first floor,

Government

other floors and vacant

Undertakings,

area, the rate will be fifty

Boards or

per cent of the rates

Corporations

specified in the column

no. 4/5.

Institutional

For all areas

7.5 Per Sq Yard

6 Per Sq Yard

These rates are for built

buildings ( other

up area of ground floor. For

than educational

the basement, first floor,

institutions, )

other floors and vacant

including

area, the rate will be fifty

community, halls/

per cent of the rates

centres, sports

specified in the column

stadiums, social

no. 4/5.

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 Sahibzada Ajit Singh Nagar

(Mohali)

– A Category

(b)

All other cities

--B Category

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, “Area2” 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 Area3. For B Category cities, Area1 shall be posh

areas with higher collector rates; balance area shall be classified as Area2.