‘Clear tax dues before transfer of property’

Source: The Hitavada      Date: 14 Nov 2017 11:57:50

Staff Reporter,

NMC proposes to recover entire dues before registration of sale deed

The defaulters of the property tax will find it difficult to create any third party interest and even sale their properties in the Orange City as Nagpur Municipal Corporation (NMC) will urge Maharashtra Government to make it mandatory to clear property tax dues before transaction of the property. The sellers will have to obtain the No Objection Certificate (NOC) from the Property Tax Department for registration of the sale deed.

The civic body is trying to plug the loopholes in transactions of the properties as sellers do not clear the old dues before transferring the properties. Presently, during transactions of properties, the tax receipt is sufficient as Stamps and Registration Department do not insist for new tax receipt. The No Objection Certificate norm will compel the seller to pay the old dues before sale of the property. The proposal will be discussed in the meeting of Standing Committee slated on November 16.

Avinash Thakre, Chairman of Property Tax Department suggested that it should be mandatory to pay full tax dues before selling any property in city. The Tax Department will issue an NOC to the seller and this will definitely increase the revenue of the department. Every year, thousands of properties change hands in the office of Registrar of Stamps at Nagpur. The NoC will also pave way for the changes in name of owner of property. Presently, the buyer has to run from pillar to post for ensuring change in name (ownership) in the tax receipt. The issue will also be raised before the Chief Minister in the meeting slated on November 14 at ‘Ramgiri’.

Cash strapped NMC has failed to increase the revenue from the property tax due to various reasons. Even the amnesty scheme has failed to recover the dues due to lukewarm response of the defaulters. Also, staff of Property Tax Department is reluctant over collecting tax dues from defaulters. The issue of dishonouring of cheques and delay in implementation of new tax regime is also causing hindrance in revenue generation.