The long-pending proposal to change the current rateable value system to capital-based system while paying property taxes will be tabled at the civic standing committee. The proposal’s fate will be decided on Wednesday if political representatives finally pass it. The current system uses a property’s ratable value as the basis for computing the tax on the rent that it earns or the notional rent it can earn. But if the proposal is passed, you will pay according to your property’s value. The capital value-based system would apply a property’s market value, as stated by the regularly updated ready reckoner, as the basis for calculating tax liability. Shift to the capital value system was suggested by a University of Mumbai and Tata Institute of Social Sciences’ study. Bureau report – NMTV News.
January 20, 2017