Nagpur: Property tax receipts remain undelivered
Real Estate

Nagpur: Property tax receipts remain undelivered

The Nagpur Municipal Corporation (NMC) faced a setback in its property tax collection efforts for the 2024-25 fiscal year, as more than one-third of tax demand bills delivered to India Post were returned undelivered. Of the 564,188 tax invoices issued across ten zones, 189,190 (or 33.53%) were returned by the postal department due to reasons such as incorrect addresses and locked homes.

In an effort to improve tax collection, NMC had entered into an agreement with India Post to deliver tax invoices to property owners' addresses, paying Rs 32 per article for this service through India Post’s speed post facility. However, the delays and inefficiencies in the delivery of these invoices had a direct financial impact on both property owners and the NMC. Approximately 189,000 property owners who did not receive their invoices on time missed out on a 10% (offline) to 15% (online) rebate on property tax payments, which was effective until 30 June. This rebate was intended to ease the financial burden on residents and encourage timely tax payments.

A senior official, who was privy to the situation, stated that to address the issue of undelivered bills, NMC teams from all ten zones would now distribute the remaining invoices directly to property owners. The outstanding property tax arrears currently stand at nearly Rs 8.5 billion, with the demand for the current financial year amounting to Rs 2.8 billion. Further delays or failures in distributing tax invoices could severely impact NMC’s revenue generation. A senior official from NMC’s accounts and finance department acknowledged that property tax is a major revenue source for the civic body and that these funds are essential for strengthening Nagpur’s civic infrastructure, including road repairs and sanitation projects.

Delivery failures varied across different zones, with the Nehru Nagar zone experiencing the highest number of returns. Of the 84,206 bills sent to India Post for this zone, 41,419 were returned, which accounted for 49.18% of the total. The Hanuman Nagar zone also reported a significant number of returns, with 22,213 out of 73,721 bills being returned, reflecting a 30.12% undelivered rate. These figures indicated that a large proportion of property owners in these areas were unreachable. On the other hand, Dhantoli had the lowest rate of returns, with only 1,089 out of 20,893 bills returned, resulting in a 5.21% undelivered rate.

Given that nearly one in three bills was returned undelivered and many property owners missed out on rebate opportunities, it is evident that NMC needs to take urgent measures. Improving address verification and updating property records will be crucial to ensuring that more residents receive their bills on time, allowing them to meet their tax obligations and helping NMC avoid further setbacks in revenue collection.

The Nagpur Municipal Corporation (NMC) faced a setback in its property tax collection efforts for the 2024-25 fiscal year, as more than one-third of tax demand bills delivered to India Post were returned undelivered. Of the 564,188 tax invoices issued across ten zones, 189,190 (or 33.53%) were returned by the postal department due to reasons such as incorrect addresses and locked homes. In an effort to improve tax collection, NMC had entered into an agreement with India Post to deliver tax invoices to property owners' addresses, paying Rs 32 per article for this service through India Post’s speed post facility. However, the delays and inefficiencies in the delivery of these invoices had a direct financial impact on both property owners and the NMC. Approximately 189,000 property owners who did not receive their invoices on time missed out on a 10% (offline) to 15% (online) rebate on property tax payments, which was effective until 30 June. This rebate was intended to ease the financial burden on residents and encourage timely tax payments. A senior official, who was privy to the situation, stated that to address the issue of undelivered bills, NMC teams from all ten zones would now distribute the remaining invoices directly to property owners. The outstanding property tax arrears currently stand at nearly Rs 8.5 billion, with the demand for the current financial year amounting to Rs 2.8 billion. Further delays or failures in distributing tax invoices could severely impact NMC’s revenue generation. A senior official from NMC’s accounts and finance department acknowledged that property tax is a major revenue source for the civic body and that these funds are essential for strengthening Nagpur’s civic infrastructure, including road repairs and sanitation projects. Delivery failures varied across different zones, with the Nehru Nagar zone experiencing the highest number of returns. Of the 84,206 bills sent to India Post for this zone, 41,419 were returned, which accounted for 49.18% of the total. The Hanuman Nagar zone also reported a significant number of returns, with 22,213 out of 73,721 bills being returned, reflecting a 30.12% undelivered rate. These figures indicated that a large proportion of property owners in these areas were unreachable. On the other hand, Dhantoli had the lowest rate of returns, with only 1,089 out of 20,893 bills returned, resulting in a 5.21% undelivered rate. Given that nearly one in three bills was returned undelivered and many property owners missed out on rebate opportunities, it is evident that NMC needs to take urgent measures. Improving address verification and updating property records will be crucial to ensuring that more residents receive their bills on time, allowing them to meet their tax obligations and helping NMC avoid further setbacks in revenue collection.

Next Story
Infrastructure Transport

Versova–Dahisar Coastal Road Project to Impact 1,200 Trees

The Versova-Dahisar Coastal Road Project in Mumbai will affect over 1,200 trees, according to the Brihanmumbai Municipal Corporation (BMC). Of these, 990 trees will be replanted, while the remaining will be cut down due to construction requirements. The project, which forms a key extension of the on-going Mumbai Coastal Road corridor, aims to ease traffic congestion in the western suburbs and enhance north-south connectivity along the city’s coastline. The BMC has assured that replantation efforts will be carried out in designated areas to maintain ecological balance and offset the environm..

Next Story
Infrastructure Transport

New Entry-Exit Planned on Vadodara–Mumbai Expressway near Ankleshwar

The Vadodara–Mumbai Expressway is set to get a new entry and exit point near Ankleshwar, aimed at improving regional connectivity and reducing travel time for commuters in south Gujarat. The new interchange, proposed by the National Highways Authority of India (NHAI), will offer smoother access to nearby industrial and residential areas. The project forms part of the Bharatmala Pariyojana initiative, designed to strengthen India’s expressway network and boost economic corridors. Once operational, the new interchange is expected to enhance logistics efficiency by offering improved freight..

Next Story
Infrastructure Transport

DMRC and UITP Host Global Conference on Sustainable Urban Mobility

The Delhi Metro Rail Corporation (DMRC) and the International Association of Public Transport (UITP) jointly organized a global conference in New Delhi focusing on sustainable and inclusive urban mobility. The event brought together international experts, policymakers, and industry leaders to discuss strategies for enhancing public transport systems through innovation and green technologies. The conference addressed topics such as reducing carbon emissions, integrating multi-modal transport, improving accessibility, and adopting smart mobility solutions in rapidly growing cities. It also unde..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?