Property tax: Exemption likely for wives of defence personnel

The Municipal Corporation (MC) is considering a proposal to exempt the wives of defence personnel from paying property tax. The agenda in this regard will be placed before the next meeting of the House Tax Committee of the MC.

As per the provisions of the property tax bylaws notified by the UT Administration, no tax is levied on residential lands or buildings owned or self-occupied (no portion is let out) by the persons who have served or are serving in the naval, military or air forces of the country, for 300 square yards. For property over 300 square yards, only 50 per cent tax shall be charged.

The MC has received various representations, requesting that the exemption may also be extended to the spouses of the serving defence personnel or ex-servicemen.

Major RS Gujral, president, Chandigarh Defence Colony Welfare Association, Sector 35, said the move was in the right direction and would provide a lot of relief to the families of the defence personnel, if approved.

He said in cases where the ownership of a complete house or part of it is transferred in the name of wife due to settlement within families, she is presently required to pay the property tax, which is not justified.

Besides the defence personnel, widows or disabled persons, who are entitled to the benefits of deductions under Sections 80 U of the Income Tax Act 1861, are also exempted from the levy.