Ahmedabad: For several years, Ahmedabad Municipal Corporation (AMC) has followed a practice of not refunding excess advance property tax paid. But it seems that this rule can be ignored, if a citizen uses political heft, like it has happened in the case of a resident of western Ahmedabad.
Officials said that the citizen was refunded an excess Rs 50,000 advance property tax paid for the 2024-25 financial year. AMC deviated from its policy for the first time in a decade, allegedly due to political pressure from a councillor.
It often happens that the AMC body may erroneously collect a higher advance tax on residential, commercial, or industrial property. Interestingly, while the GPMC Act does not say anything about not refunding any excess found during computation, the civic body follows a practice of crediting it against the next year’s tax, giving the excuse that refunds require the municipal commissioner’s signature. This way, it keeps crores of rupees deposited with itself. Each year, the corporation collects Rs 40 to 50 crore in property tax, with the revenue now reaching Rs 2,000 crore.
A retired AMC official, speaking anonymously, stated that according to Section 485(1) of the GPMC Act, citizens have the right to object to property tax or quadrennial assessment, and if the tax is corrected, the benefit should be provided retroactively. Section 485(2) of the Act provides for refunds, but the AMC does not issue them, crediting the amount for future bills.
Before filing objections, citizens are required to pay the full amount stated in the bill. A hearing on the objection determines if the excess amount should be refunded. The law stipulates that refunds should be given retroactively from the time of incorrect assessment, but the corporation only provides benefits from the time an objection is filed.
Objections are filed against 10% to 15% of the property tax bills, of which about 5% are approved, requiring refunds, which are never issued, the retired official said. On the contrary, AMC charges an 18% interest on defaulters.