The Hindu : Karnataka News : Property tax under CVS

Online edition of India's National Newspaper
Monday, Mar 24, 2008
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Karnataka

Karnataka

Property tax under CVS

Sir, — This refers to a report in The Hindu on 17th March. The Capital Value System (CVS) of property tax assessment replacing the Self Assessment Scheme (SAS) of Bruhat Bangalore Mahanagara Palike is in violation of the norms. Under the CVS, wherein the tax amount will be six times the amount under SAS, the tax is levied not only on the value of the structure but also the value of the site. This system, therefore, assumes the form of wealth tax which is the domain of Income Tax Department. With the introduction of CVS, the municipal authorities are trying to invade the Union Government’s arena, the validity of which is questionable. The High Court of Rajasthan, in an appeal filed by East India Hotel Ltd., has decreed that the municipal or State authorities do not have the authority to levy tax on the aggregation of values of building and land. This decision should be brought to the attention of the Governor besides filing writ petitions in the High Court of Karnataka.

N. Venkataraman

Bangalore

Tax calculation

Sir, — The sample calculation of property tax under the new Capital Value System (CVS), as computed in The Hindu on March 17, has shocked me. The property tax for my 20-year-old self-occupied house was Rs. 1,200 according to the Self-Assessment Scheme. But, according to the proposed CVS, the tax would now cross Rs. 6,000.

S. Kuppuswamy

Bangalore

Milk parlour needed

Sir, — I request the authorities concerned to open a milk parlour at Vidyamanyanagar in Bangalore. Accommodation for the parlour is readily available, if need be.

K.R.R. Rao

Bangalore

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