Prayagraj: In a major relief for property owners, the Prayagraj municipal corporation (PMC) is set to extend tax benefits to newly constructed residential buildings in the city. It has been decided to provide a 25% tax rebate in the annual rental value assessment of new buildings, which will automatically translate into a similar reduction in house tax for eligible property owners.The decision was taken during a meeting held by chief tax assessment officer Sanjay Mamgai with tax superintendents and department staff. During the meeting, officials were directed to apply the 25% concession while assessing even newly constructed houses.“However, the benefit will be limited to purely residential properties where there is no commercial activity as buildings with any form of commercial use will not be eligible for the rebate,” said Mamgai. Moreover, the owner of the building should be occupying the house, himself, he added.The move is expected to provide financial relief to homeowners and encourage compliance in tax payments. It also aligns with demands raised earlier by corporators during discussions on the revised municipal budget. In those deliberations, members of the mini house had sought tax concessions for older buildings as well, particularly those over 20 years old.Acting on these demands, the corporation had then passed a resolution to extend tax rebates to older properties in accordance with provisions of the UP Municipal Corporation Act, 1959. PMC had earlier announced that a 32.5% rebate will be provided to the houses which are over 10 years old and up to 40% for buildings older than 20 years. In addition, PMC offers an additional 10% rebate, on the total taxable value, for the initial few months after the bill is generated to promote early payment by the consumer.The official said the provisions of the Act will now be fully implemented, ensuring a more structured and transparent tax system while offering relief across categories of property owners.
