Pune’s Property Owners Skip Tax Affidavits

In Pune, nearly two lakh property owners have failed to submit the required PT3 forms—self-occupancy affidavits that are necessary to avail a 40 per cent discount on property tax—despite multiple deadline extensions. The Pune Municipal Corporation (PMC) has reported that this lack of compliance is largely due to a significant number of properties either being locked or rented out, leading to a reluctance among owners to declare their property’s actual status.

The PMC’s initial estimate suggested that around 4.5 lakh properties would need to submit these PT3 forms to claim the tax discount. However, a recent survey revealed a substantial shortfall, raising concerns about the actual usage of these properties. An official from the PMC indicated that many of the unreported properties are likely rented out, causing owners to avoid submitting the self-occupancy affidavits required for the tax concession. In an effort to enforce compliance, the PMC undertook a city-wide survey to identify properties that had not submitted the required forms. This effort included a pilot project launched in June at the Sinhagad Road ward office, which revealed several inconsistencies. Notably, some properties, despite being self-occupied, were erroneously charged additional taxes due to the lack of submitted affidavits. This prompted the PMC to extend the survey across all wards, aiming to ensure that all eligible properties comply with the tax discount regulations.

The PMC has also engaged with housing societies to gather accurate information on property occupancy, although this strategy did not yield the expected level of cooperation. “The civic administration is offering a discount for self-occupied properties. However, many citizens have not completed the formality,” stated the head of the PMC Property Tax Department, urging residents to submit the PT3 forms and associated documents to claim their discounts. The policy allowing a 40 per cent tax discount for self-occupied properties was initially introduced in 1970. However, due to the lack of formal legislative backing, the central government auditors deemed the discount illegal, leading to its temporary removal in the 2018-19 fiscal year. The policy was later reinstated in the 2022-23 fiscal year following widespread public outcry and numerous complaints.

To promote compliance, the PMC has conducted extensive door-to-door campaigns. An initial pilot survey took place on May 6 in areas such as Vadgaon Dhayari, Vadgaon Budruk, and Hingane, with a larger inspection carried out between June 19 and August 15. During this period, 150 officials from various PMC departments were deployed to facilitate the submission of PT3 forms. Additionally, divisional and Peth inspectors distributed forms directly to property owners to maximise participation. The PMC’s proactive measures underscore the significance of accurate property tax declarations in maintaining municipal revenue streams and ensuring equitable tax distribution. As Pune continues to grow, adherence to such policies is critical in balancing the city’s fiscal health with the residents’ right to fair taxation. Moving forward, the PMC is likely to intensify its efforts to improve compliance and ensure that all eligible property owners benefit from the available tax incentives.