MCD notified under subhead “Helping Hand†(vide Times of India,Delhi of May 23, 2004) that: Any increase in incidence of tax in the case of residential premises would be capped at 2.5 times the tax assessed and paid in the previous year (2003-04), to avoid any hardship to Sr. citizens and other economically weaker sections.
In the case of Munirka DDA Flats of 1974(self occupied, first floor with area of 87 sq m): Annual Tax assessed and paid upto 2003-04 = Rs. 400
Under Unit Area Method Tax Payable = 40x87x0.7x0.9
=Rs. 2192.4
Rebate (Sr. citizen) 30% of Rs.2192.4 =657.7
Net Tax payable … Rs. 1534.7
Capped at Rs.400x(1 + 2.5) = Rs. 1400
Tax due for 2009-10: Rs.1400 - 210 (15% rebate for early payment) = Rs.1190 and not Rs.1534.7 x 0.85 = Rs.1304 as being shown on computer generated challan for payment. Software used does not seem to take cognizance of MCD's helping hand. MCD’s web site managers should take immediate action to generate challans with correct tax amount.
MCD’s Helping Hand
MCD notified under subhead “Helping Hand†(vide Times of India,Delhi of May 23, 2004) that: Any increase in incidence of tax in the case of residential premises would be capped at 2.5 times the tax assessed and paid in the previous year (2003-04), to avoid any hardship to Sr. citizens and other economically weaker sections. In the case of Munirka DDA Flats of 1974(self occupied, first floor with area of 87 sq m): Annual Tax assessed and paid upto 2003-04 = Rs. 400 Under Unit Area Method Tax Payable = 40x87x0.7x0.9
=Rs. 2192.4 Rebate (Sr. citizen) 30% of Rs.2192.4 =657.7
Net Tax payable … Rs. 1534.7
Capped at Rs.400x(1 + 2.5) = Rs. 1400 Tax due for 2009-10: Rs.1400 - 210 (15% rebate for early payment) = Rs.1190 and not Rs.1534.7 x 0.85 = Rs.1304 as being shown on computer generated challan for payment. Software used does not seem to take cognizance of MCD's helping hand. MCD’s web site managers should take immediate action to generate challans with correct tax amount.
drprrao ------------------------------------------------------------------------------------------------------------
Dr.P.Ramakrishna Rao
A-2-C, Munirka DDA Flats
New Delhi - 110067
Email: drprrao@yahoo.com
Tel: 2616 5338