<p>Bengaluru: Gram panchayats in Karnataka have collected Rs 863 crore in property taxes this year, the highest ever in the state’s history, giving these rural local bodies financial autonomy to spend on developmental activities without much dependence on the government.</p>. <p>Karnataka has 1.38 crore rural properties and levying taxes on them is the primary revenue source for 5,949 gram panchayats. </p>.BBMP earns Rs 4,284 crore from property tax.<p>In the current fiscal, authorities expect to collect an additional Rs 800 crore in tax revenue.</p><p>The government, in a note, attributed the rise in tax collection efficiency to numerous steps, mainly the Panchatantra 2.0 software that was implemented in 2022-23. </p><p>“...a Capital Value System (CVS) of tax calculation has been introduced to generate property tax demands,” the government said. “Each property is profiled on Panchatantra 2.0 based on multiple attributes such as residential or commercial use, floor details, and around 50-100 other attributes, along with the guidance value, which determines the market value and forms the basis for tax calculation. This system has significantly reduced the scope for arbitrary calculations and human errors in tax assessments,” the note explained.</p>.Tax on gram panchayat properties to go up.<p>Digital payment options have helped citizens pay taxes conveniently, the government said. “Android point-of-sale (PoS) machines have been distributed to 5,949 Gram Panchayats. Since April 1, 2023, a total of Rs 1,165.12 crore has been collected through PoS machines,” it said. </p><p>The government notified new tax rules in 2022-23. “Following the automation of the property tax system in Panchatantra 2.0, starting from 2023-24, the department has undertaken a manual survey of properties in the gram panchayats to collect detailed attributes for accurate tax calculation and to include more properties in the tax base,” it said. </p><p>In 2023-24, the tax demand rose to Rs 1,290 crore, up 64% from the previous fiscal. “The current demand stands at Rs 1,633.25 crore. After updating all properties and adding missing ones to the tax base, the expected demand is projected to reach around Rs 1,700 crore,” the government said. </p><p>“For gram panchayats to function effectively as local self-government institutions, they need their own resources,” Additional Chief Secretary (Panchayat Raj) Uma Mahadevan told DH.</p><p>“Karnataka's gram panchayats have the power to collect property taxes. The RDPR department has supported gram panchayats to do a more comprehensive survey of properties, revise property taxes in a scientific manner, and collect taxes efficiently using online modes, PoS machines etc,” Uma added. </p>
<p>Bengaluru: Gram panchayats in Karnataka have collected Rs 863 crore in property taxes this year, the highest ever in the state’s history, giving these rural local bodies financial autonomy to spend on developmental activities without much dependence on the government.</p>. <p>Karnataka has 1.38 crore rural properties and levying taxes on them is the primary revenue source for 5,949 gram panchayats. </p>.BBMP earns Rs 4,284 crore from property tax.<p>In the current fiscal, authorities expect to collect an additional Rs 800 crore in tax revenue.</p><p>The government, in a note, attributed the rise in tax collection efficiency to numerous steps, mainly the Panchatantra 2.0 software that was implemented in 2022-23. </p><p>“...a Capital Value System (CVS) of tax calculation has been introduced to generate property tax demands,” the government said. “Each property is profiled on Panchatantra 2.0 based on multiple attributes such as residential or commercial use, floor details, and around 50-100 other attributes, along with the guidance value, which determines the market value and forms the basis for tax calculation. This system has significantly reduced the scope for arbitrary calculations and human errors in tax assessments,” the note explained.</p>.Tax on gram panchayat properties to go up.<p>Digital payment options have helped citizens pay taxes conveniently, the government said. “Android point-of-sale (PoS) machines have been distributed to 5,949 Gram Panchayats. Since April 1, 2023, a total of Rs 1,165.12 crore has been collected through PoS machines,” it said. </p><p>The government notified new tax rules in 2022-23. “Following the automation of the property tax system in Panchatantra 2.0, starting from 2023-24, the department has undertaken a manual survey of properties in the gram panchayats to collect detailed attributes for accurate tax calculation and to include more properties in the tax base,” it said. </p><p>In 2023-24, the tax demand rose to Rs 1,290 crore, up 64% from the previous fiscal. “The current demand stands at Rs 1,633.25 crore. After updating all properties and adding missing ones to the tax base, the expected demand is projected to reach around Rs 1,700 crore,” the government said. </p><p>“For gram panchayats to function effectively as local self-government institutions, they need their own resources,” Additional Chief Secretary (Panchayat Raj) Uma Mahadevan told DH.</p><p>“Karnataka's gram panchayats have the power to collect property taxes. The RDPR department has supported gram panchayats to do a more comprehensive survey of properties, revise property taxes in a scientific manner, and collect taxes efficiently using online modes, PoS machines etc,” Uma added. </p>
