200,000 Pune Properties Miss Tax Discounts

In Pune, a staggering 200,000 property owners have neglected to submit the mandatory PT3 forms—self-occupancy affidavits essential for securing a 40% discount on property tax—despite numerous extensions of the deadline. The Pune Municipal Corporation (PMC) has identified that this widespread non-compliance stems from a considerable number of properties being either locked or rented out, prompting owners to hesitate in declaring their property’s true status.

Initially, the PMC estimated that approximately 450,000 properties would need to file PT3 forms to claim the tax concession. However, recent surveys have revealed a significant shortfall, raising alarms about the actual occupancy and usage of these properties. A PMC official highlighted that many unreported properties are likely rented out, leading to owners avoiding the submission of self-occupancy affidavits necessary for the tax relief. To address this compliance issue, the PMC launched a comprehensive city-wide survey to identify properties that have not submitted the required forms. This initiative began with a pilot project in June at the Sinhagad Road ward office, which uncovered several inconsistencies. For instance, some properties that were genuinely self-occupied were incorrectly taxed due to the absence of submitted affidavits. Consequently, the PMC decided to extend this survey across all wards to ensure adherence to tax discount regulations.

Efforts have also included engagement with housing societies to collect accurate information on property occupancy; however, this approach has not garnered the expected level of cooperation. The head of the PMC Property Tax Department emphasised the need for residents to complete the PT3 formality to benefit from the tax discount. The 40% discount for self-occupied properties was first introduced in 1970 but faced legal challenges, leading to its temporary withdrawal in the 2018-19 fiscal year. Following public outcry, the policy was reinstated for the 2022-23 fiscal year. To encourage compliance, the PMC has embarked on extensive door-to-door campaigns. Initial surveys took place on May 6 in areas like Vadgaon Dhayari, Vadgaon Budruk, and Hingane, with larger inspections running from June 19 to August 15. During this period, 150 officials were mobilised from various PMC departments to facilitate PT3 form submissions. Additionally, divisional and Peth inspectors distributed forms directly to property owners, maximising participation.

The PMC’s proactive measures highlight the critical role of accurate property tax declarations in sustaining municipal revenue and ensuring equitable taxation. As Pune continues its urban expansion, strict adherence to these policies will be vital in maintaining the city’s fiscal health while safeguarding residents’ rights to fair taxation. Looking ahead, the PMC is expected to intensify its efforts to enhance compliance, ensuring all eligible property owners can take advantage of the available tax incentives.