Chandigarh Revises Property Tax Rates; Offers Rebates for Early Payment
The Voice of Canada-The Voice of Chandigarh News
In a major policy update, the Chandigarh Administration has revised the property tax structure for residential, commercial, and industrial properties in the Union Territory. The move aims to boost municipal revenue and enhance service delivery by the Municipal Corporation.
According to Notification No. 5062-68 dated 31.03.2025, the property tax on commercial and industrial properties was initially increased from 3% to 6% of the Annual Rateable Value (ARV). Simultaneously, tax on residential lands and buildings was raised to three times the rates specified in the previous notification issued on 16.03.2020.
However, the Chandigarh Administration later issued a partial modification via Notification No. C-499835-FII(8)-2025/6401 dated 23.04.2025, reducing the revised commercial and industrial tax rate from 6% to 5% of the ARV. The hike in residential property tax has also been moderated, now revised to two times the 2020 rates instead of three.
Amit Kumar, IAS, Commissioner of the Municipal Corporation, Chandigarh, stated that approximately 31,000 properties are assessed under commercial tax and around 1.08 lakh properties fall under residential tax in the city.
He also announced a rebate scheme to encourage timely payments. Residential property owners are eligible for a 20% rebate, while commercial property owners can avail a 10% rebate if taxes are paid between April 1 and May 31, 2025. However, payments made via cheque or demand draft will be accepted only up to May 25, 2025 for rebate eligibility.
The Commissioner emphasized that this is the first major revision in property tax since 2020 and is crucial for ensuring greater financial autonomy for the Municipal Corporation. Demand notices reflecting the current year’s tax and any applicable arrears are being dispatched to all property owners.
Citizens are encouraged to verify their dues on the official E-Sampark portal and make payments within the rebate period to avoid penalties and avail the offered discounts.
