AMC to Seek 'No Dues' Certificates Before Granting BU Permission

04 Jul 2023 CW Team

The Ahmedabad Municipal Corporation has determined that 'no due' certificates from the property tax department would now be necessary before building use [BU] authorization is granted in order to improve its property tax revenue and reclaim tax dues for open land.

According to AMC revenue committee chairman Jainik Vakil, land owners are required to pay property tax on open plots between the issuance of construction permit and the completion of construction, however this is often not done. As a result, they have determined that, in addition to providing building use approval, the estate department will also request a 'no dues' certificate from the tax department.

According to Vakil, if a tax assessment is delayed, the AMC will recover taxes on an open plot. He stated that, under current practice, the estate department just needs a NOC from the tax department when providing approval for development.

There is no such coordination when it comes to awarding BU permission once the structure is completed. He also stated that the issue of tax entry duplication, with open property appearing in corporation records while tax bills are given to individual owners, will be addressed.

As stated by Vakil, these decisions were made at a joint meeting of the estate and tax departments, and efforts will be coordinated at the zonal office level. When buildings are demolished by the owner, the AMC will seek 'no dues' certificates to ensure that taxes are paid in full.

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