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Ahmedabad Residential Real Estate: The Ahmedabad Municipal Corporation(AMC) has announced a flat 25% tax discount on homes ranging from 40-70 sq mts in area. On Thursday, the civic body standing committee held a meeting in which the decision was formulated.
So, the tax discount benefits the property owners who plan to sell 2 BHK properties as well, the average carpet area of 2 BHK flats is around 750sq ft.
Further, the civic body also provided its approval for continuing the discount offer on the properties situated in areas that were newly merged with the city municipal corporation. On these kinds of properties, the civic committee will offer a 75% tax discount in the first year, 50% in 2nd year, and 25% in the third year.
In the last year, 2021-22, the property tax was waived for the residential properties with 40 sqft carpet area or lesser than that. This year, the civic body stretched it until 70 sq mts.
The flat discount in Ahmedabad city sure would be helpful to the real estate professionals. Every year civic body collects about 30 Crores in property tax from GIDC estates in Vatva, Naroda, Odhav and Kathwada and 3/4th of this money is given back to the estates.
Also, the municipal commissioner, in his latest draft budget of 8111 crore rupees, had proposed a hike of 636 crore rupees for the year 2022 - 2023.
On Feb 2nd, 2022, AMC amended the draft annual budget of the civic body, from 8,111 crores to 8,807 crore rupees. So, an addition of 696 crore rupees to the last year’s budget is decided.
The municipal corporation has maintained a ‘No hike’ in taxes this year too, and the standing committee chairman also announced no change in property tax and other taxes.
Standing Committee chairman Hitesh Barot, while presenting the budget on Tuesday, said, “The newly merged areas of Bopal-Ghuma, Chiloda Naroda, Kathwada, Sanathal, Vishalpur, Aslali, Ranasan, Khodiyar and Nana Chiloda will be provided rebate in property tax.”
