A total of 1,244 commercial properties in the Gurgaon city have changed their category to residential properties, 514 to industrial use, 95 to institutional use and 403 to vacant plots.GURUGRAM: MCG has constituted 16 teams to check tax evasion by changing the use of properties from commercial to residential, and industrial or institutional and submit a report by April 30.
A total of 1,244 commercial properties in the city have changed their category to residential properties, 514 to industrial use, 95 to institutional use and 403 to vacant plots.
The MCG officials said this change in property categories was found after a private agency, hired by the MCG to carry out a property tax survey, submitted its report last year.
The MCG teams will now verify if the property categories were changed. Teams will also check the public parking sites, including those in shopping malls, which are charging parking fees from residents.
Commercial properties in the city, such as shopping malls, can get a tax rebate if they provide free parking to the public.
“We have found anomalies after a private agency carried out a survey of properties in the city last year. 16 teams have been formed to check tax evasion. The teams will check all the commercial properties, which have registered a change in their category. Besides the teams, four joint commissioners and three additional commissioners will randomly check 5% of these properties each so that the cases are verified. I have asked the teams to submit a report by April 30. The aim of this exercise is to stop loss of revenue to the civic body,” MCG commissioner PC Meena said.
For a residential property, the tax for the ground floor is Rs 1 per sq yard with a plot size of up to 300 sq yards whereas, for a commercial space, the tax for the ground floor is Rs 24 per sq yard with a plot size up to Rs 50 sq yards.
The MCG officials said that the change from commercial to any other category including residential and institutional implies that the property owner has to pay less amount of tax. Property tax is one of the major sources of income for the civic body.