Owners of Real Estate in Gurgaon Petition MCG to Not Collect Income Tax

Real estate property in Gurgaon

Some of those who own real estate in Gurgaon that has been built by the biggest names in real estate in this suburb of Delhi sent a message to the MCG stating that they had been charged an incorrect property tax as per section 87(a) Haryana Municipal Corporation Act.

The Nitty Gritty of the Legal Code

One of the petitioners who also happens to be an advocate himself has stated that under Section 87(a) owners of property do not have to pay any property tax until the region upon which the concerned property rests goes on to be vested under the MCG. According to the petitioners only once the property is under the control and management of the MCG are residents required to pay tax to the MCG. The petitioner has stated that since the localities of DLF Phase 1-5 are not yet legally transferred to the MCG the residents of these localities should not have to pay tax.

Residents are Already Paying Different Entities

The petitioner has stated that residents of the localities mentioned are already paying HUDA for external development work and are also paying their developer for internal development work. It has also been stated by the petitioner that residents of the localities mentioned already pay maintenance charges to the developer regularly every month. Despite the fact that thirty years have passed, according to the petitioner, the localities continue to be under the management of the builders who have not yet finished the development work in the localities.

According to the President of the Gurgaon Citizen’s Council since the region where the petitioners live still vests with the builders, the MCG is not vested with the authority to levy and collect property tax from the residents who live in the mentioned localities. Hence according to the petitioners the land upon which the housing structures stand still vests with the builders and has not been transferred to the care of the MCG making the MCG’s collection of income tax from those who live in houses in these regions illegitimate.

The MCG’s Rubuttal

The MCG however has countered the statement made by the Gurgaon Citizen’s Council emphasizing that the taxes the MCG collects from residents of the localities mentioned have absolutely nothing to do with the maintenance charges residents of these localities pay to HUDA or the maintenance charges they pay to the builders in Gurgaon.

Commissioner of the MCG, Mr. Uma Shankar, has stated that taxes are imposed by the government irrespective of any services rendered as they are a source of revenue for the government. On the other hand according to Mr. Shankar maintenance charges are collected in lieu of services provided. According to Mr. Shankar those who own Gurgaonreal estate have to pay property tax irrespective of the status of the area where the property stands.

For more information click here- Real estate blog in gurgaon

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