MCG has established 16 teams to investigate cases of tax evasion involving conversions of properties from commercial to residential, industrial, or institutional usage, and they have to report their findings by April 30.
There are 1,244 commercial properties have been reclassified as residential homes, 514 as industrial assets, 95 as institutional facilities, and 403 as vacant plots in the city. A private company that the MCG engaged to conduct a property tax survey completed its report last year, according to MCG officials, and this shift in property categories was discovered as a result.
The MCG teams will now investigate any potential changes to the property categories. Teams will also inspect any public parking lots, including those in malls that charge locals for parking. If they offer free parking to the general public, commercial assets in the city, such as shopping malls, are eligible for tax breaks.
After a private organisation conducted a survey of houses in the city last year, we discovered abnormalities. To investigate tax evasion, 16 teams have been organised. All commercial assets that have filed a change in category will be examined by the teams.
In order to verify the cases, four joint commissioners, three additional commissioners, and four commissioners selected at random will each check 5% of these properties. The teams have been required to turn in a report by April 30. The purpose of this effort is to stop the civic body from losing money, according to MCG commissioner PC Meena.
The tax on the ground floor of a residential property is Rs 1 per square yard with a plot size of up to 300 square yards, but the tax for a commercial building is Rs 24 per square yard with a plot size of up to 50 square yards.
According to MCG officials, shifting from the commercial category to any other category, such as residential or institutional, signifies that the property owner must pay less in taxes. One of the main sources of income for the civic body is property tax.