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

1894

EXTRAORDINARY

Published by Authority

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

( 1894 )

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. 3/2/21-1lg3/351/1.-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, is based on the formula given below-

Property Tax value = (Tax Base x Multiplicative Factor)

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

construction cost)]

Wheras, 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 yards/ square foot

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

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 Sewa Kendras.

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

1895

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:

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

USE

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

REMARKS

Area

B category

C category

classification

cities

Residential

For all except

Area 1

2.00 Per Square

1.00 Per Square

These rates are for built

houses

single storey

Yard

up area of ground floor. For

houses built on

Area 2

1.00 Per Square

0.50 Per Square

the basement, first floor,

land area up to

Yard

other floors and vacant

125 square Yard

area, the rate will be fifty

per cent of the rates

specified in the column

no. 4/5.

Residential

Having more

Area 1

2.00 Per Square

1.00 Per Square

Flats

than 500 square

Yard

feet super area

Area 2

1.00 Per Square

0.50 Per Square

Yard

Commercial

Having 100

Area 1

3.00 Per Square Ft

2.00 Per Square Ft

These rates are for built

buildings

square feet land

Area 2

1.50 Per Square Ft

1.00 Per Square Ft

up area of ground

including

or below

floor. For the basement,

Restaurants

first floor, other floors and

(except

Having 1000

Area 1

4.00 Per Square Ft

2.00 Per Square Ft

vacant area, the rate will

Multiplexes,

square feet

Area 2

2.00 Per Square Ft

1.00 Per Square Ft

be fifty per cent of the rates

malls, marriage

land or below

specified in the column

palaces)

but beyond 100

no. 4/5.

square feet land

Having beyond

Area 1

5.00 Per Square Ft

3 Per Square Ft

1000 square

Area 2

2.50 Per Square Ft

1.50 Per Square Ft

feet land

Multiplexes,

For All Areas

10.00 Per Square Ft

8.00 Per Square 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

4.00 Per Square

2.00 Per Square

These rates are for Whole

Yard

area of Land.

Industrial (any

Having 4000

For all areas

4.00 Per Square

3.00 Per Square

These rates are for built

manufacturing

square yards

Yard

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)

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institutions, and

Having beyond

For all areas

6.00 Per Square

4.50 Per Square

other floors and vacant

Godowns

4000 square

Yard

area, the rate will be fifty

yards land

per cent of the rates

specified in the column

no. 4/5.

Government

Area 1

4.00 Per Sq Yard

2.00 Per Sq Yard

These rates are for built

Building including

Area 2

2.00 Per Sq Yard

1.00 Per Sq Yard

up area of ground floor. For

Buildings of

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

6.00 Per Sq Yard

4.50 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)

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