DISSERTATION ON

“A study on role of taluk panchayats in collection of property tax in gubbi

taluk panchayat”

A dissertation submitted to the Tumkur University in partial fulfilment of

requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By:

PRATHAP M L

(Reg. no.19PA1257)

UNDER THE GUIDANCE OF

Mrs. PALLAVI G P

Assistant Professor

SRI SIDDHARTHA INSTITUTE OF MANAGEMENT STUDIES,

(Affiliated to TUMKUR UNIVERSITY approved by AICTE, Delhi)

Maralur,Tumkur-572105, Karnataka
DECLARATION

PRATHAP M L hereby declares that contents of this dissertation” A study on

role of taluk panchayats in collection of property tax in gubbi taluk

panchayat" are the outcome of my original research work. Further, this report

has not been submitted to any Institution or University for award of any degree.

Date: PRATHAP M L

Place: Reg No: 19PA1257

CERTIFICATE BY PRINCIPAL

This is to certify that the dissertation entitled “A study on role of taluk

panchayats in collection of property tax in gubbi Taluk panchayat ” has been
successfully carried out by PRATHAP M L. 4thsemester MBA student of Sri
Siddhartha Institute of Management Studies in partial fulfillment of the
requirements for the degree of Master of Business Administration of Tumkur
University, Tumkur.

This research work is original in nature which has been undertaken by the above
student and the findings in the form of report have not been submitted to other
university for award of other university for the award of any degree.

DATE: - Dr. B AZMATHULLA

M.B.A. PGDPM & IR., L.L.B., FCHRD, M.PHIL., PhD,

PLACE: - Principal, SSIMS

CERTIFICATE BY THE GUIDE

This is to certify that the dissertation entitled “A study on role of taluk

panchayats in collection of property tax in gubbi taluk panchayat” is on original
research work undertaken by PRATHAP M L in partial fulfillment of MBA
course requirements of Tumkur University. Throughout the process of research
study, the candidate has worked under my direct supervision and guidance.

Project Guide Project Co-ordinator

Mrs. PALLAVI G P Dr. RAJESHWARI P

Assistant Professor Assistant Professor

SSIMS TUMKUR SSIMS TUMKUR

ACKNOWLEDGEMENT

I take this opportunity to express my since and grateful thanks to

Dr. B. AZMATHULLAH Principal of Sri Siddhartha institute of
management studies for providing all the facilities and for the timely help
rendered during the course.

I take great pleasure in expressing my heartfelt thanks to the pillar

behind the whole project, my guide Mrs.PALLAVI G P, Assistant Professor of
SSIMS, Tumkur without whose valuable suggestion and co-operating, it would
have been impossible for me to have completed and complied the report.

I also extend my sincere thanks for all the faculty members for sharing
their ideas and co-operation and lastly I wish to thank all my friends and the
persons who are directly and indirectly helped me in completion of my
dissertation

PRATHAP M L

Reg. No:19PA1957
CONTENTS

PAGE
CHAPTERS CONTENTS
NO’S

1 INTRODUCTION 1-6

2 REVIEW OF LITERATURE 7-12

INTRODUCTION ON TALUK
3 13-29
PANCHAYATS

4 THEORETICAL BACKGROUND 30-55

5 55-89
DATA ANALYSIS AND INTERPRETATION
6 FINDINGS SUGGESTIONS AND 90-93
CONCLUSIONS
94-94

BIBLIOGRAPHY

QUESTIONNAIRE
LIST OF TABLES

SL PAGE
TITLE OF TABLES
.NO NO
1 TABLE AGE OF THE RESPONDENTS 55
2 Table Gender of the respondents 57
Table identification of properties which are to be taxable
3 by gubbi taluk panchayath.
59
Table respondents of opinion regarding the method they prefer
4 to record the property tax information.
61
Table showing gubbi taluk panchayath mode of collection of
5 property tax.
63

Table respondents opinion regarding period of preference

6 which is better to collect property tax during financial year.
65

Table respondents opinion whether gubbi taluk panchayath

7 conduct regular survey to detect illegal and unauthorized 67

properties.
Table respondents opinion regarding whether present staff at the

8 gubbi taluk panchayats are efficient in their work in the 69

collection of property tax.
Table respondents opinion regarding whether gubbi taluk
9 panchayat under take tax awareness
71
Table respondents opinion whether property tax procedures at
10 the gubbi taluk panchayat are very efficient and effective
73
Table respondents opinion regarding reasons why the people or
11 property owner not pay property tax.
75
Table respondents opinion regarding the changes required for
12 collection of property tax
77
Table respondents opinion regarding problems in property tax
13 collection.
79
Table respondents opinion regarding the expected property tax
14 collected in the previous year .
81
Table showing the respondents opinion regarding their

15 satisfaction level with the amount of property tax collected at 83

present.
Table Showing the respondents opinion regarding how will they
16 rate property tax collection in gubbi taluk panchayats.
85
Table showing the respondents opinion regarding whether gubbi

17 taluk panchayat has proper system of control in the 87

administration of property tax collection.
LIST OF GRAPHS

SL.NO TITLE OF GRAPHS PAGE.NO

1 GRAPH AGE OF RESPONDENTS 56

2 Graph gender of the respondents 58
Graph identification of properties which are to be taxable by
3 gubbi taluk panchayath.
60
Graph respondents of opinion regarding the method they
4 prefer to record the property tax information.
62
Graph showing gubbi taluk panchayats mode of collection of
5 property tax.
64
Graph respondents opinion regarding period of preference
6 which is better to collect property tax during financial year.
66
Graph respondents opinion whether gubbi taluk panchayath

7 conduct regular survey to detect illegal and unauthorized 68

properties.
Graph respondents opinion regarding whether present staff at

8 the gubbi taluk panchayats are efficient in their work in the 70

collection of property tax.
Graph respondents opinion regarding whether gubbi taluk
9 panchayat under take tax awareness.
72
Graph respondents opinion whether property tax procedures
10 at the gubbi taluk panchayat are very efficient and effective.
74
Graph respondents opinion regarding reasons why the people
11 or property owner not pay property tax.
76
Graph respondents opinion regarding the changes required
12 for collection of property tax.
78
Graph respondents opinion regarding problems in property
13 tax collection.
80
14 Graph responden ected in the previous year. 82
Graph showing the respondents opinion regarding their

15 satisfaction level with the amount of property tax collected at 84

present.
Graph respondents opinion regarding how will they rate
16 property tax collection in gubbi taluk panchayats.
86
Graph showing the respondents opinion regarding whether

17 gubbi taluk panchayat has proper system of control in the 88

administration of property tax collection.
EXECUTIVE SUMMARY

As a study on role of talk panchayats in collection of property tax in gubbi

taluk panchayat, the basic unit of the panchayats in India is known as the taluk
panchayat or the village council that is elected by the popular voting system.

Funding of village panchayats is an important part of the panchayat property tax

is the major source of income to the taluk panchayat, they collect major portion
of tax from the properties.

Local governments or taluk panchayats use property tax revenue to find

important services and development projects at local level.

Despite of these advantages levying property tax includes many difficulties,

there are many problems associated with determining the value of immovable
properties.

Because of the following reasons : such as lack of proper administration

system, fake records used for registration, hence this study is made to get an
idea about the property tax assessment by taluk panchayats in collection of
property.
“A study on role of Taluk Panchayats in collection of Property tax – Gubbi Taluk Panchayat”

CHAPTER 1
INTRODUCTION
INTRODUCTION OF TAX

Taxes in India are levied by the central Government and the State Governments. Some
minor taxes are also levied by the local authorities such as the Municipality.
The authority to levy a tax is derived from the Constitution of India which allocates the
power to leavy various takes between the central Government and the State. An important
restriction on this power is Article 265 of the Constitution which states that "No tax shall be
levied or collected except by the authority of law". Therefore each tax levied or collected
has to be backed by an accompanying law, passed either by the Parliament or the State
legislature. In 2015 - 16, the gross tax collection of the Centre amounted to Rs. 15.60 trillion
(US $ 220 billion).
HISTORY OF INDIAN TAXATION
In India, the tax was introduced for the first time in1860, by Sir.James Wilson in order to
meet the losses sustained by the Government on account of the Military Mutiny of 1857.
Thereafter, several amendments were made in it from time to time.
In 1886, a separate Income tax act was passed this act remained in force up to with various
amendment from time to time. In 1918, a new Income tax was passed and again it was
replaced by another new act which was passed in 1922. This act remained in force up to the
assessment year 1961 - 62 with numerous amendments.
The Income tax act of 1922 had become very complicated on account of innumerable
amendments. The Government of India therefore referred it to the law commission in 1956
with a view to simplify and prevent the evasion of tax.
The law commission submitted its report in September 1958, but in the meantime the
government of India had appointed the Direct taxes Administration Enquiry Committee
submitted its report in 1956. In consultation with the Ministry of law family the Income tax
Act, 1961 was passed.
The income tax act 1961 has been brought into force with.
In April 1962, it applies to the whole of India and Sikkim (including Jammu and Kashmir).
Since 1962, several amendment of far reaching

Dept. of MBA, SSIMS, Tumkur Page 1

“A study on role of Taluk Panchayats in collection of Property tax – Gubbi Taluk Panchayat”

Dept. of MBA, SSIMS, Tumkur Page 2

nature have been made in the Income tax Act by the union Budget every year.Which also
contains finance bill.
After it is passed by the both the houses of Parliament and receives the assent of the
president of India, it becomes the finance act. Besides thisamendments have also been made
by various Amendments acts for instance, transaction laws Amendment Act, 1985. Direct
taxes Amendment Act, 1987. Direct Taxes Law (Ammendment) Acts of 1998 and 1989,
Direct tax law (second amendment) act, 1992 and 1993, are mostly based on the
recommendation of chelliah commiyye report.
As a matter of fact, the Income tax act 1961, which came into force on 1st April 1962, has
been amended and re - amended drastically. It has therefore become very complicated both
for the administering authorities and tax payers.

MEANING OF TAX
Tax is compulsory levy under certain conditions and it is meant for the general purposes of
the State. It is one of the main sources of income to the government. Every citizen of a
country pays tax compulsory in one way or other.
A "tax is a levy, duty, payment, cess, charge, fine and penalties.
A compulsory contribution to state revenue, levied by the government on workers income
and business profits or added to the cost of some goods, services and transactions.
A tax (from the Latin taxo) is a financial charge or other levy imposed upon a taxpayer (an
individual or legal entity) by a state or the functional equivalent of a state to fund various
public expenditures. A failure to pay, or evasion of or resistance to taxation, is usually
punishable by Law.

DEFINITION OF TAX
Section 2(43) of income tax act 1961, defines as "Tax means Income Tax chargeable under
the provision of this tax and Fringe benefits".
According to Michael Olulenu, "Taxes" are the enforced proportional contribution from
persons and property, levied by the state by virtue of its sovereignty for the support of
government, government and for all public need".
Tax can be defined as a levy or other type of a financial charge or fee imposed by state or
central governments on legal entities or individuals.

TITLE OF THE STUDY

Title of the study means the name of the research topic.
The title of this research report is
"A STUDY ON ROLE OF TALUK PANCHAYAT IN COLLECTION PROPERTY TAX -
GUBBI TALUK PANCHAYAT"

STATEMENT OF THE PROBLEM

The basic unit of the Panchayats in India is known as the 'Taluk Panchayat' or the village
Council that is elected by the popular voting system. Funding of the village Panchayats is an
important part of the Panchayat administration and the property tax is the major source of
income to the Taluk Panchayat, they collect major portion of tax from the properties. Local
governments or Taluk Panchayats use property tax revenue to find important services and
developmental projects at local level.
Despite of these advantages levying property tax includes many difficulties, there are many
problems associated with determing the value of immovable properties. Because of the
following reasons; such as, lack of proper administration system, fake records used for
registration, the property tax based on variety of factors rate disparity from state to state and
community to community. Hence this study is made to get an idea about the property tax
assessment by Taluk Panchayats and to make awareness of individuals about the role of
Taluk Panchayats in collection of property.

OBJECTIVES OF THE STUDY

a) To know the role of Taluk Panchayats in collection of property tax.
b) To know about the procedures followed by Taluk Panchayats for collection of
property tax.
c) To overview the property tax revenue sources of Grama Panchayats.
d) To evaluate the efficiency of Taluk Panchayats in collection of property tax.
e) To identify the changes that needed by the Taluk Panchayats to assess property tax.
f) To identify the difficulties in collection of Property tax by Taluk Panchayats.

HYPOTHESIS OF THE STUDY

H0 = There is no significant role playing by Taluk Panchayats in collection of property tax
at rural or local level.
H1 = There is significant role playing by Taluk Panchayats in collection of property tax at
rural or local level.
Taluk Panchayats play a major role in funding of developmental activities by collecting
property tax.
Taluk Panchayats limited authority and powers to improve and collect tax properties.

SCOPE OF THE STUDY

The study covers the assessment of property taxes by Taluk Panchayats and their role in
collection and consumption of property tax. It take into consideration only the area Tumkur
city and the data collection and analysis are made by considering the information collected
in Gubbi Taluk Panchayat.

SIGNIFICANCE OF THE STUDY

"A Study on role of Taluk Panchayats in collection of property tax - Gubbi Taluk
Panchayat" is important because from this study it is able to identify the role and
administration system of Taluk Panchayats in collection of property tax and also it emphasis
property taxation system of India at local level.

RESEARCH METHODOLOGY
At this research study, descriptive methodology and direct interview method is used to
collect data for the analysis.
PERIOD OF STUDY
The period of study covers 3 months to collect first hand information and secondary data
about role of Taluk Panchayats in collection of property tax.

SOURCES OF DATA
Primary data
Primary data is collected by means of questionires and interviews.
Secondary data
Secondary data is collected by means of articles, journals, magazines, books.

SAMPLING DESIGN
Sampling techniques:
There are many techniques to be adopted in the research (survey, questionnaire etc...). Here
the study would be conducted by adopting convenience sampling techniquss.
Sampling size:
The respondents to this survey would be from Gubbi Taluk Panchayat workers. The sample
of 30 respondents would be selected to this survey.

ANALYSIS OF DATA
The responses obtained from the questionnaire are tabulated and simple percentile method is
used for analysing the data to facilitate interpretation and easy understanding of information.

OPERATIONAL DEFINITIONS OF THE STUDY

Property :
Property has a very wider meaning in its real sense. It not includes money and other tangible
things of value, but also includes any intangible right considered as a source or element of
income or wealth. The right and interest which a man has in lands and chattels to the
exclusion of others. It is the right to enjoy and to dispose of certain things in the most
absolute manner as he pleases, provided he makes no use of them prohibited by law.
Property tax :
Property tax is the annual amount paid by a land owner to the local government or the
municipal corporation of his area. It is most commonly founded on the concept market
value. The tax base may be the land only, the land and buildings or various permutations of
these factors.
Taluk Panchayat:
Taluk Panchayats in India are basically the institutions that are also referred to as the local
government in the country and are self - sufficient. As per Article 40 of the Constitution of
India, the government of the country gasd to set up Panchayats in the villages so that they
can act as local self - government.

LIMITATIONS OF STUDY
1. The present study concentrated only on Gubbi Taluk Panchayat.
2. The study focus mainly on primary data.
3. The study is limited to the property tax collection and the role of Taluk Panchayats
in collection of property tax.
4. The sample size the study is 25 respondents.
5. It mainly emphasis on property taxation at village and small town level.
CHAPTER – II
LITERATURE REVIEW
Good number of literature have been reviewed and some listed below.
Title: "LAND USE PLANNING AND THE PROPERTY TAX"
Author: Jackson E, Sullivian. Jr.
Year: July, 1976.
The study examines the role that the property tax plays in land use planning decisions. The
authors emphasis on determining that the effectiveness of property tax in influencing a land
use decision rather than an examination of quality of land use activity after development has
occurred. The objectives of study also provide planning and local government officials with
an understanding of the part of the property tax plays in land use planning to provide an
appreciation of the complexities involved in utilising the property tax to achieve land use
planning. The authors feels that definite steps and procedures the planner should utilise in
formulating tax proposals designed to influence land use decisions.
Title: "INTRODUCTION ON LEGAL ISSUES IN PROPERTY VALUATION AND
TAXATION"
Author: Joan Yongman.
Year: March/April, 1995.
Property tax studies offer several perspective on current political and economic
development in the countries. At the most basic level they provide information on a stable,
longstanding and endlessly controversial revenue source that serves as a mainstay of
autonomous local government finance in the countries. More generally this study examined
the assessment problems which yield rich material for the many areas of taxation. Finally
this tax bring into sharp focus many political issues concerning payment for government
securities.
Title: "RENT CONTROL AND MUNICIPAL PROPERTY TAX BASE REFORM
ATTEMPT IN INDIA"
Author: Dutta. Abhijeet.
Year: 1998
The present situation of property tax and different alternative taxes. He also discuss the
reforms in the property taxation. The Indian experience of reforming the property tax base,
and shows a consistent trend in court decision to accord privacy to rent control laws in
determining rental value. The recent policy changes under India's new economic policy
since 1991 hold the prospect of a phased withdrawal of urban rent control that would restore
the effective operation of the rental base of the urban property tax.

Title: "EVALUATION THE STRUCTURAL EFFECTS OF PROPERTY TAX

ABATEMENTS ON ECONOMIC DEVELOPMENT ACROSS INDUSTRIES"
Author: Yu - Che Chang
Year: 2002.
This analysis is concerned with the inter - judiciary economic effect of property tax
abatements. Examined thehow PTAs influence different types of busines. How the
efficiency of property tax abatement program varies in attracting economic activities for
different sectors. The study recommended that local government been more selective in the
provision of property tax Abatements, this analysis provide more information with regard to
the economic effect of PTAs on different sectors, with this knowledge, government
officials have better chance making more informed decision, further more property tax
Abatements, programme can be use together with other entrepreneurial demands - side
policies.
Title: "LAND AND PROPERTY TAXATION"
Authors: Richard May, Bird and Enid Slack.
Year: March 2002.
In their study the authors tried to explore rationale for taxing land and property both as a
source of a local government revenue and in terms of its effects on efficient land use. Taxes
on land and property have both fiscal and non - fiscal effects. The study revealed that the
revenue such taxes produce is often an important source of finance for local governments,
the extent to which land taxes can continue to local government revenue and to more
efficient land use nothing that different forms and levels of land and property taxation are
likely to provide suitable in different environments. The study showed that to the extent that
property tax differentials are matches by differentials in expenditure on public service, they
should not result in a distortionary impact on location or land use.

Title: "PROPERTY TAXATION AND DEMOCRATIC DECENTRALISATION IN

DEVELOPING COUNTRIES"
Authors: Dele Olowu
Year: 2002
For a variety of reasons, many developing countries especially since the 1990's have
embarked on programmes of democratic decentralisation that are aimed at creating local self
- governing systems that are democratic relating autonomous and effective in delivering
services. The study examined the problem is that many central governments are engulfed in
a systematic strategies for reducing their expenditure commitments. This paper suggests a
different and more positive view. The study concedes that property taxation remains largely
untapped and might indeed be progressive in developing countries. This literature
highlights mainly the technical to progress - assessment, Valuation and collection. In
contrast, this paper contents that the problem of the tax is due to a combination of political
and technical factors, the paper suggests that willingness opportunity and capacity remain
critical factors and demonstrates new opportunities the tax can be overcome by partnership
between central and state governments, public and private and domestic and external
factors.
Title: "REFORMING PROPERTY TAX IN MUNICIPAL CORPORATION"
Author: Mathur, MP.
Year: 2004
The importance and position of property tax in India. The property tax is the most important
source of revenue of municipal corporations. After abolition of Octorai, the main source of
revenue of the municipalities is the property tax. The tax collection in property levy states is
greater than the non octroi state. The paper analyse that there is a big variation in the
collection and on an average only 30 to 40% potential tax is realized, and taxes on property
continued to be plagued by problems of narrow base, persistence under valuation, high rates,
poor collection efficiency etc... The suggested that there is a need to reform the property tax
to raise its potential. The municipal corporation of property tax should have been simple
and transparent.

Title: "ASSESSMENT THE IMPACT OF LOCAL TAXATION OF PROPERTY

PRICES; A SPECIAL MATCHING CONTRIBUTION"
Author: Sylvie Charlot, Sonia Paty, Pichel Visalli.
Year: 2004
In their study the authors tried to provide empirical evidence on the impact of local taxation
on property prices controlling for the amount of local public spending in an urban French
context; using data on property taxation and real estate transaction. They suggests that the
local property tax rate has no impact on property prices, while the amount of taxes paid
appears to have a negative effect on property prices. In this study they found that the local
public spending has almost no effect or a very small effect on property prices, they also
found that local property taxation does not have the expected negative impact on taxation
prices. However, buyers are more sensitive to the amount of taxes they will have to pay
than to the tax rate.
Title: "THE PROPERTY TAX IN PRACTICE"
Author: Roy W. Ball, John Youngman, Jonge Martines - Vazquez.
Year: 2008.
This study argued by drawing an recent experiences with property tax policy and
administration. They further find that the principal administrative impediment to the
behaviour use of the property tax in developing and transitional countries is the challenge of
determining market values for land and structures absence accurate sales data on property
taxation, the more likely problem in developing countries is that repord sales values for
traded property are not accurate. Based on these arguments they suggest and find that with
careful design and administration, the property tax can be a key to strengthening local
government finances promoting rural development. Market assisted information for
valuation can be acceptable by substituting for actual sales transaction data.

Title: "A GIS - BASED REAL ESTATE TAX INFORMATION SYSTEM"

Author: Titus, S. Zones.
Year: August 2013.
Determination of taxes on real estates requires accurate information on individual property
structure location ownership condition, size and it's use classification. At the division, the
existing method of property mapping is not parcel based and thus is increasingly incapable
of supporting unique parcel identification. To overcome these shortcomings and to enhance
the efficiency and effectiveness of the taxation procedures the author suggests that
Geographical Information System (GIS), that is one such endeavor that makes the
assessment simpler by providing locational and the matic information on individual
properties including 2D footprints of structure on each improved parcel in rating areas GIS -
based tax information system provides opportunities to perform various analysis on spatial
spatial and attribute data, thus providing a base for decision - making, future planning and
streamlining the work flow flow of the property tax assessment.
Title: TAXING IMMOVABLE PROPERTY; REVENUE POTENTIAL AND
IMPLEMENT CHALLENGES"
Author: John Norregaard.
Year: May, 2013.
The tax on immovable property has been characterized as probably the most unpopular
among tax instruments, in part because it is salient and hard to avoid. But economist
continues to emphasize the virtues of property tax owing to its relatively low efficiency
costs, benign impact on growth and high score on fairness. This paper takes stock of the
arguments for using real property taxation and prevents an updated data - set for high and
middle income countries. It also reflects the renewed and wide spread interest in property
tax reform globally and discuss the many policy and administrative issues that must be
carefully considered as requisite for successful property tax reforms.

Title: "NO PROPERTY LEFT BEHIND: AN EXPLORATION OF ABANDONED

PROPERTY POLICIES"
Author: Margaret Louise Smith.
Year: 1/1/2015.
Historic preservation work on both the micro and macro levels, at the micro level, they
handle handle the site I specific, bricks and mortar issues, and at the macro level, they
manage commonly oriented plans, such as historic districts. The 2 levels are important to
grasp for a sense of place. Historic preservation and peacemaking are thus interrelated. The
study recommended that, presevationists advocates, in order to grow and serve the
communities, preservations must appreciate and exercise more than just those tools
commonly found in the standard historic preservation lexicon, they should embrace using
all policy tools avaliable to them.
CHAPTER - 3

INTRODUCTION ON TALUK PANCHAYATS

Taluk Panchayats is the oldest system of local government in the Indian subcontinent. The
word 'Panchayat' literally mean 'assembly' (ayat) "of five (panch)" wise and respected
elders chosen and accepted by the local community. Traditionally, these assemblies settled
disputes between individuals and villages. British established local self government in 1869
when they made a District Local Fund in Bombay. This was a nominated body, in1882,
Lord Ripon established local self - government in India with the seating up of district local
boards. District boards and councils were established in Maratheada and vidarbh.
The next important piece of legislation was the Bombay village Panchayat Act 1920. Under
this Act, the Panchayats was constituted into an elected body. Members were elected by
adult male villagers and the Panchayat was entrusted with local functions mainly with civic
nature. Panchayats were empowered to collect compulsory taxes. This Act also empowered
village Panchayats to take up various activities, including some social - economic functions,
and gave the power to levy taxes and duties in order to increase their income.
After the reorganisation of states in 1956, laws to introduce the Panchayat system in
different states were gradually enacted. The Bombay Village Panchayats Act was enacted in
producer for seeking legal redress through judicial courts are both long and enormously
complicated, and also involve considerable expenses. It is because of this that several
different newer ways of setting disputes both quickly and inexpensively have come up.
One such method is the Lokadalat 1958. Under the Act, a district village for the supervision
and control of villages Panchayats. These Mandals were, however, abolished in 1962. Apart
from this enactment in various states, a direction is contained in the Constitution of India in
Article 40 which says "The state shall take steps to organise Village Panchayats and endow
them with such powers and authority as may be necessary to enable them to function as
units of self = government.
These failed attempts to deal with local matters the national level brought back, in 1992.
The reintroduction of Panchayats for their previously used purpose as an organisation for
local self - governance, and for decentralisation of authority and responsibility of the
Government. The constitutional (73rd amendment) Act passed in 1992 by the Narasimha
Rao government, came into force on April 24, 1993. It was meant to provide constitutional
section to establish "democracy at the grassroots level as it at the state level or national
level".
At present there are about 3 million elected representatives at all levels of Panchayat 1/2th
of which are women. These members represents more than 2.4 lakh (24000) Taluk
Panchayats.

FUNCTIONS OF TALUK PANCHAYATS

Functions of Taluk Panchayats subject to such conditions As may be specified by the State
Government, from time to time, a Taluk Panchayat shall perform the following functions,
namely :-
1. General functions:
a) Preparation of annual plans for the development of Panchayat area.
b) Preparation of annual budget.
c) Mobilizing reliefs in natural calamities including relief to poor.
d) Removal of encroachment on public properties.
e) Organising voluntary labour and contribution for community works.
f) Maintainance of essential statistics of village.
g) Rendering assistance and implementation of development schemes pertaining to
the village through its Grama Sabha.
h) Promotion of unity and harmony among all the sections of society in the village.
2. Construction, repair and maintenance of community assets:
a) Any public place including its sanitation and drains.
b) Wells, and tanks for the supply of water for drinking, washing and bathing.
c) Burial and cremation grounds.
d) The lightening of public places.
e) Building for the accommodation of travellers.
f) Ponds for animals, cattle and sheds for cart, bicycle, rickshaw, and auto stand,
bus stand.
g) Public gardens, playgrounds, establishment and maintenance of recreation parks,
organisation of games and sports, supply of sport materials and holding of
tournaments.
h) Libraries and reading rooms.
i) The construction, repair and maintenance of public places and buildings of
public utility under its own control or transferred to it by the state government or
any other authority.
j) Allotment of places for preparation and conservation of manure and shifting
them to far away places.
k) Construction and maintenance of culverts and bridges and slaughter - houses.
l) The laying out of new roads and pathways and maintenance of existing ones.
m) Supply of water for domestic use and for cattle.
n) Community listening.
o) Preservation and control of pollution.
p) Maintainance of boats, ferries and all water ways.
q) Cleaning of public roads, drains, tanks, wells and other public places.
r) Construction and maintenance of public latrines.
s) Disposal of unclaimed corpses and carcasses.
t) Management and control of washing and bathing Ghats.
3. Agriculture including agricultural extension:
a) Pomotion and development of agriculture and horticulture.
b) Development of waste lands.
c) Development and maintenance of grazing lands and preventing their unauthorised
alienation and use.
d) Destruction of weeds and pests.
e) Training and carrying out schemes for the improved methods of cultivation and
management of lands to increase production.
f) The organisation of young Farmers Clubs.
g) Promotion of agricultural credit and of measures including establishment of
provision and implement stores and credit centres to relieve rural indebtedness and
poverty.
5. Animal husbandry, dairying and poultry:
a) Improvement of breed of cattle, poultry and other livestock.
b) Promotion of dairy farming, poultry and piggery.
c) Grass - land development preparation and distribution of improved variety of
seeds of fodder and grass.
d) The voluntary registration of sales of cattle, camels and destruction of stray
animals.
e) First - aid centres, destruction and hospitals for animals including their health
care.
5. Fisheries:
Promotion and development of fisheries in the village.
6. Social and Farm forestry, Minor Forest Produce Fuel and Folder:
a) Planting and preservation of trees on the sides of roads and other public lands
under its control.
b) Fuel plantations and fodder development.
c) Promotion of farm husbandry.
d) Development of social forestry.
7. Khadi, village and cottage industries:
a) Promotion of Agro based rural and cottage industries.
b) Organisation of awareness camps, seminars and training programmes
agricultural and industrial exhibitions for the benefit of the rural areas.
8. Rural housing:
a) Distribution of house sites within its jurisdictions.
b) Maintainance of records relating to the house sites and other private public
properties.
9. Rural electrification including Distribution of Electricity:
Providing for and maintenance of lighting of public streets and other places.
10. Non - conventional energy source:
a) Promotion and development of non - conventional energy source.
b) Maintainance of community non - conventional energy devices, including bio-
gas plants.
c) Propagation of improved challahs and other efficient energy devices.
11. Poverty alleviation programmes :
a) Promotion of public awareness and participation in poverty alleviation
programmes for fuller employment and creation productive assets etc..
b) Selection of beneficiaries under various programmes through Gram Sabha.
c) Participation in effective implementation and monitoring.
12. Education including primary and secondary school :
13. Cultural activities :
a) Promotion of social and cultural activities.
b) The organisation of Mahila Mandals, organisation of Youth Clubs for promoting
games and sports and execution of development, social and cultural activities in
the Sabha areas.
15. Fairs and Festivals:
a) Organisation and celebration of public festivals and fairs other than religious
festivals.
b) To organise, regulate and control markets for sale and purchase of any product.
15. Public health and family welfare:
a) Implementation of family welfare and population control programmes.
b) Prevention and remedial measures against epidemics.
c) Regulation of sale of meat, fish and other perishable food articles.
d) Participation in programmes of human and animal vaccination.
e) Licencing of eating and entertainment establishment.
f) Destruction of stray dogs.
g) Regulation of curing, tanning and dyeing of skins hides.
16. Women and child development
a) Participation in the implementation of women and child welfare programmes.
b) Promotion of school health and nutrition programmes.
c) Establishments, maintenance and management of maternity an child welfare
centres and the construction and repair of all the buildings connected therewith.
17. Social welfare including welfare of the handicapped and mentally retarded:
a) Participation in the social welfare programmes, including welfare of the
handicapped, mentally retarded and destitute.
b) Monitoring of the old age and widows pension schemes.
18. Welfare of weaker sections and in particular the scheduled casye:
a) Promotion of public awareness with regard to welfare of scheduled castes and
other weaker sections.
b) Participation in the implementation of the specific programmes for the welfare of
the weaker sections.

19. Public distribution system :

a) Promotion of public awareness with regard to the distribution of essential
commodities.
b) Monitoring the public distribution system.
20. Assignment of functions of Taluk Panchayats :
a) The state Government may, by notification and subject to such conditions as may
be specified thereafter, assign to the Taluk Panchayat such other functions which
may be deemed fit and proper for proper control, management and
administration of the Taluk Panchayats.
b) The state Government shall from time to time allot to the Grama Panchayats
such as it may deem proper and sufficient for proper discharge of functions to be
entrusted under sub 0 - section (1).
POWERS OF TALUK PANCHAYATS
1. Power to make contribution for organisations, etc... Outside jurisdiction:
Taluk Panchayats may contribute such amounts for such organisations, institutions and
functions outside the jurisdiction of the Taluk Panchayats as the state government may be
general or special order permit.
2. Power of Taluk Panchayats as to public streets, waterways and other Matters:
a) A Taluk Panchayats shall have control of the public streets, water-resistant, other
than canals as defined in sub section (1) of section 3 of the Northern India Canal and
Drainage Act, 1873, situate within its jurisdiction not being a private Street or water
- ways and not being under the control of the state government or the [Zila
Panchayat] or any other authority specified by the State Government and may do all
things necessary for the maintenance and repair thereof, and may:-
b) Construct new bridges and culverts.
c) Divert, discontinue or close any public Street, culvert or bridge.
d) Widen, open, enlarge for otherwise improve any public Street, culvert or bridge
with minimum damage to the neighbouring fields.
e) Deepen or otherwise improve water - ways.
f) With the sanction of the prescribed authority and where a canal exists under the
Northern India Canal and Drainage Act 1873, with the sanction also of such officer
of the Irrigation Department as the State Government may prescribe small irrigation
projects in addition to those specified by order under clause (u), section 15.
g) Cut any hedge or branch of any tree projection on a public Street.
h) Notify the setting apart of any public water - course for drinking or culinary
purposes, and prohibit bathing, washing of clothes and animals or doing other acts
likely to pollute the course so set apart. Provided that nothing shall be done under
clause (g) which may affect a canal governed by the Northern India Canal and
Drainage Act, 1873,without the prior permission of the authority prescribed by the
State Government in this behalf.
3. Improvement of sanitation:
a) For the improvement of sanitation, a [Taluk Panchayat] may, by notice, direct the
owner or occupier of any land or building, taking into consideration his financial
position and giving him reasonable time for compliance therof-
b) To close, remove, alter, repair, cleanse, disinfect or put in good order any latrine,
urinal, water-cooled, drain, cesspool or refuse pertaining to such land or building or
to remove or alter any door or trap or construct any drain for any such latrine, urinal
or water-closet which opens on to a street or drain or to shut off such latrine, urinal
or water - closet by a sufficient roof and wall or fence from the view of persons
passing by or dwelling in the neighbour-hood.
c) To cleanse, repair, cover, fill up, drain off, deepen, or to remove water from a private
well, tank, reservoir, pool, pit, depression, or excavation therein which may appear
to the Taluk Panchayats to be injurious to health or offensive to the neighbourhood.
d) To close off any vegetation, undergrowth, prickly pear or scrub - jungle.
e) To remove any dirt, dung, night - soil manure or any moxious or offensive matter
therefrom and to cleanse the land or building; Provided that a person on whom a
notice under clause (b) is served may, within 30 days of the receipt of notice, appeal
to the District Medical Officer of Health against the said notice who may vary, set
aside or confirm it.
5. Maintenance and improvement of schools and Hospitals:
Taluk Panchayats:-
a) Shall, subject to such rules as may be prescribed regarding the curriculum,
employment and qualification of teachers and supervision of a school, maintain any
existing primary school including the buildings and furniture thereof and be
responsible for its proper working and may similarly establish and maintain a new
school or improve any existing school.
b) Shall, subject to much rules as may be prescribed regarding the establishment
maintenance and supervision, maintain any existing Ayurvedic, (Homoeopathic) or
Unani hospital or dispensary including the building and equipments thereof and may
similarly establish and maintain a new hospital or dispensary for one or more the
systems of medicine mentioned above.
5. Establish of primary school, hospital, dispensary, road or bridge for a group of
Taluk Panchayats :
Where a group of neighbouring [Taluk Panchayats] has no primary school or Ayurveda,
Homoeopathic or Unani hospital or dispensary, or it needs a road or bridge for its common
benefit, the Taluk Panchayats thereof shall, if so directed by the prescribed authority,
combine to establish and maintain such a school, hospital or dispensary, or to construct and
maintain such a road or bridge, and it shall be managed and financed in the manner
prescribed. The state government and Zila Panchayat shall make such grants for such
school, hospital, dispensary, road or bridges as prescribed.
6. Assistance to Government servants :
A Grama Panchayat shall, if so prescribed by the State Government and so far as
practicable, assist any Government servant in the performance of his duties within its area.
7. Representations and recommendations by Taluk Panchayats :
a) A Taluk Panchayas may make to the proper authority.
b) Any representation concerning the welfare of the persons residing within its
jurisdiction, and
c) Any recommendatios as to the appointment, transfer or dismissal of patrol of the
Irrigation Department, Patricia (or Lokadalat, village Choukidar) or Mukhia serving
in any area within the jurisdiction of such Taluk Panchayas.
8. Power to enquire and report about the misconduct of certain official :
On receiving a complaint from any person, residing within the jurisdiction of a Taluk
Panchayat about any misconduct in the discharge of his official duties by any Amin, process
- server, vaccinator Constable, [village Choukidar], Patwari, [Patrol and Tube well operator
of the Irrigation Department, forest guard, forest Choukidar, Teacher of a primary school,
pond keeper, village stockman] or peon of any Government Department, such Panchayat
may, if here be prima facie evidence, forward the compliant to the proper authority with its
own report. The authority shall, after such further enquiry which may be required, take
suitable action and inform the Taluk Panchayat of the result.
9. Power to contract for collection of taxes and other dues for properties :
A Taluk Panchayat may, as prescribed and in respect of any area within its jurisdiction enter
into a contract -
a) With the state government or any local authority to collect any taxes or dues
payable to state or to such local authority upon payment of such collection charges
as may be prescribed. Or
b) With the State Government or any local authority for carried out any work an such
terms as may be agreed upon.
Major tax powers
 Land tax (agricultural and non-agricultural)
 House building tax
 Vehicle tax
 Water, drainage and sanitation taxes
 Pilgrim tax
 Tax on fairs and other entertainments
 Tax on profession, trade and callings
 Tax on advertisement
 Octroi on animals or goods or both brought for sale
 Lump sum levy of factories in lieu of taxes
 Special tax for construction and public works
Fees and charges levied for provision of public facilities
 Water rate
 Lighting fee
 Street cleaning fee
 Conservancy fee
 Drainage fee
 Sanitary fee for public latrines; and pilgrimage fee (sanitation tax/fee)
Fees for use of common resources
 Fee for the use of Panchayat shelter
 User charges for hospitals and schools
 Fee for use of common resources like grazing land etc...
 Fee on markets and weekly bazaars
 Fee on animals sold etc...

New powers recommended by SFCs

 House tax
 Tax on pumps and tractors
 Tax on highway services
 Tax on village produce sold in regulated markets.
 Tax on telephone and cable T.V.
 (Non - agricultural) profession tax

SOURCES OF REVENUE OF TALUK PANCHAYATS:

As per section 93 of the Orissa Taluk Panchayat Act, for every Taluk Panchayat, there shall
be a fund known as 'Taluk Fund'. Taluk Fund is placed to the Taluk Panchayat. All money
received from the government and income of the Taluk Panchayat shall be deposited in the
Taluk Fund. The Taluk Fund shall be deposited in any Nationalised Savings Bank or nearest
Post Office or Treasury. Following are the sources of revenue of the Taluk Panchayat. It
raises money through taxes, fees and Government taxes.
1. Collection of taxes in the rural areas like water tax, lighting tax, toll tax, tax on
profession.
2. Fees on private markets, cart sheds.
3. Fees on animals sold in a public market controlled by a Taluk Panchayat.
4. Fees for use of any building, shops, stalls, and stands in the market.
5. Rent from contractor's occupying (temporarily) open grounds or any building
maintained by the Taluk Panchayat.
6. Any other tax, fee as may be decided by the Taluk Panchayat subject to the approval
of the State Government.
STANDING COMMITEES OF TALUK PANCHAYATS :
Every Taluk Panchayat shall constitute the following committees by election:
1. Production Committee
2. Social Justice Committee
3. Amenities Committee:
1. Production Committee:
This committee shall perform functions relating to agricultural production, animal
husbandry and rural industries and poverty alleviation programmes.
2. Social Justice Committee:
This Committee shall perform functions relating to
 Promotion of educational, economical, social, cultural and other interests of the
Sheduled Castes and Scheduled Tribes and Backward Classes.
 Protection of such castes from social injustice and any from of exploration.
 Welfare of women and children.
3. Amenities Committee :
This committee shall perform functions in respect of education, public health, public
works and other functions of the Taluk Panchayat.

TALUK PANCHAYAT PROFILE

NAME OF THE TALUK PANCHAYAT: GUBBI TALUK PANCHAYAT
ADDRESS: Taluk (Taluk/Hobli), Tumkuru, (District), Tumkuru - 572107
PHONE NUMBER : 08139287329
E-MAIL: [email protected]
YEAR OF ESTABLISHED: 1993
NUMBER OF VILLAGES: Revenue villages-243, Hamlet villages-245.
TOTAL POPULATION: 168890
STAFFING PATTERN OF EMPLOYEES OF GUBBI TALUK PANCHAYAT

PDO : Sowthagyavathi
Secretary : Mayanna
SDA : Kumarswamy
Bill-Collector : Shivram

GOVERNING COMMITTEE
President : Nagarathnamma
Vice – President : Shivamma
Members : 14th members

PANCHAYAT DEVELOPMENT OFFICER (PDO): Sowthagyavathi

SECRETARY: Mayavathi
PRESIDENT: Nagaratnamma

POWERS AND DUTIES OF PDO:

Every Panchayat shall have a whole time PDO who shall be an officer of the Government
and shall draw his salary and allowances from the Panchayat Fund.

The PDO shall perform all the duties and exercises all the powers imposed or conferred
upon him by or under this Act or any rules or byelaws there under. Moreover he performs
all the duties that are performed by the secretary, he is the head of Taluk Panchayat he
supervise the functions of staff at the Taluk Panchayat office.

POWERS AND DUTIES OF SECRETARY:

Every Panchayat shall also have a whole time Secretary who shall be an officer of the
Government and shall draw his salary and allowances from the Panchayat Fund. The
Secretary shall perform all the duties and exercises all the powers imposed or conferred
upon him by or under this Act or any rules or byelaws there under. Not with standing
anything contained in this Act and the rules framed there under the Secretary shall also
exercise the powers on the following matters, namely ;
1. To issue the license for construction, repairs, modification, alteration so also
occupancy certificate in pursuance of the resolution of the Panchayat.
2. To initiate action for stopping and or demolishing an unauthorised structure/building
constructed without the permission of the Panchayat after resolution is passed to that
effect.
3. To execute the resolution passed by the Panchayat body.
4. Attend every meeting of the Panchayat including Gram Sabha meetings, unless he is
precluded from attending the meeting due to unavoidable circumstance.
5. Write the proceeding of every meeting in the minute book.
6. Place all the correspondence received by him, specially various schemes of the
government, instructions issued by the Director and other authorities (except those of
confidential nature) before the Samantha and also for the information of all members
during the meeting.
7. Receive all correspondence, scrutinize the same a and dispose off after having
satisfied that the same are complete in all respects.
8. Finalize the agenda of every meeting in consultation with the Samantha.
9. Report within seven days to the Block Development Officer any vacancy in the
office of the Sarpanch or deputy Sarpanch or a member caused due to death,
resignation or continuous absence for more than three consecutive ordinary meeting
of the Panchayat.
10. Report to the Block Development Officer, if any illegal act or misconduct or abuse
of powers any infringement of the provisions of this Act by the Sarpanch or Deputy
Sarpanch or the members of the same comes to this knowledge.
11. Report, as soon as possible, to the Block Development Officer, if any member of the
Panchayat attracts disqualification under section 10 of this Act.
12. Maintain all the registers prescribed under various Rules and the Block Development
Officer may direct other Registers as.
13. Responsible for safe custody of Panchayat funds, assets of Panchayat and all the
Registers maintained by the Panchayat.
14. Comply with the instructing issued by the Block Development Officers and superior
authorities from time to time.
15. Maintain cordial relations with the elected representatives.
16. Ensure that grants released by the government under Grant - in - Aid for the
Panchayat does not spend specific purpose for any purpose other than the purpose
for which it is sanctioned.

POWERS AND FUNCTIONS OF THE PRESIDENT/SARPANCH

The chair person of the Taluk Panchayat is called President or Sarpanch, he has the tenure
of five years and he is elected by the members.
The following are the functions of President of Gubbi Taluk Panchayat all the executive
powers of the Taluk Panchayat are vested in him.
1. To convene and preside over the meetings of the Taluk Panchayat.
2. To conduct and regulate and be responsible for the proper maintenance of the
records of the proceedings of the meetings.
3. To execute documents relating to controls on behalf of the Grama Shaman.
4. To be responsible for the proper custody of all records and documents, all valuable
securities and assets belonging to the Taluk Panchayat or belonging to the gram
shaman.
5. To be responsible for the proper working of the Taluk Panchayat as required by or
under the Act.
6. To exercise supervision and control over the acts of the Taluk Panchayat officers and
employees of the Taluk Panchayat.
7. To have authority to enter into correspondence on behalf of Taluk Panchayat to
order preparation of all statements and reports.
8. To exercise such other powers, discharge such other duties and perform such
functions as may conferred or imposed on or assigned to him.
9. To order preparation of all statements and records.
POWERS AND FUNCTIONS OF VICE - PRESIDENT
The vice - president of the Gubbi Taluk Panchayat shall exercise the powers and performs
the duties of the President when the President is absent, on leave or is incapacitated from
functioning.
POWERS AND FUNCTIONS OF MEMBERS
The members of the Taluk Panchayats have also tenure of five years and are directly elected
by the wards.
The members of the Gubbi Taluk Panchayat performs the following functions :
1. To supervise during office hours, the records of the Taluk Panchayat after giving
due notice to the President.
2. To move resolution or question on any office bearer on matters connected with the
administration of the Taluk Panchayat.
3. To exercise inspection overt all works undertaken by the Taluk Panchayat.
4. To supervise all institutions working under the direction, management and control
of the Taluk Panchayat.
5. To bring to the notice of the President, the irregulation if any noticed during such
inspection.
FUNCTIONS OF SECOND DEVISION ACCOUNTANT (SDA)
Every Panchayat shall also have a whole time Sea who shall be an officer of the
Government and shall draw his salary and allowances from the Panchayat Fund be performs
the following functions :
1. He prepares and maintains all required statements and records.
2. He prepares and records all tax related information and documents.
3. He prepares and maintains cash book.
4. For prepares and maintains of all the accounts.
5. He safeguards all accounts and documents of the Taluk Panchayat.
FUNCTIONS OF BILL COLLECTOR

He is not appointed by the government, but is appointed by the Taluk Panchayat Committee.
He is appointed for the purpose of performing following functions :
1. For collection and maintenance of all required information for the Taluk Panchayat.
2. For collection of all taxes, cess and feeses.
3. He performs all the duties which are instructed by the Secretary, PRO, and other
officials members of Panchayat.
4. For collection and clearance of all bills pertaining to the Taluk Panchayat.
CHAPTER – IV
THEORITICAL BACKGROUND
INTRODUCTION

Taxes are the primary source of income for a government, with the taxes earned dictating
the resources available to citizen. Every property is an asset which is taxable and the
property is an annual amount paid by a property/land owns to the government. This tax
could be paid either to the local state government municipal corporation, depending on
government policies.
The word 'property' in the context refers to all tangible real estate under the ownership
of an individual and includes house, office buildings and premises rented to third parties.
Property tax, as a concept has been around for centuries and is acknowledged across the
globe, with records of farmers and peasants paying tax on their properties even in the
middle ages.
A property tax is a levy on property that the owner is required to pay. The tax is levied by
the government authority of the jurisdiction in which the property is situated; it may
paid to a national government, a federal state, a country or geographical region or a
municipality. Multiple jurisdiction may tax the same property. This is in contrast to a rent
and mortgage tax, which is based on a percentage of the rent or mortgage value.
In India property tax or 'house tax' is a local tax on buildings, along with appurtenant land,
and imposed on Possessor (certainly, not true custodian of property as per 1978, 44th
amendment of constitution). It resembles the US - type wealth tax and differs from the
excise - type UK rate. The tax power is vested in the states and it is delegated by the
law to the local bodies, specifying the valuation method, rate band, and collection
procedures. The tax base is the annual rental value (ARV) or area based rating. Owner
occupied and other properties not producing rent are as assessed on cost and then converted
into ARV by applying a percentage of cost, usually six percent. Instead a 'service charge'
is permissible under executive order. Properties of foreign missions also enjoy tax
exemption without any reciprocity. The tax is accompanied by a number of service taxes,
e.g., water tax, drainage tax, conservancy (sanitation) tax, lighting tax, all using the same
tax base. The rate structure is flat on rural (panchayat) properties, but in the urban
(municipal) areas it is mildly progressive with about 80% of assessment of falling in the
first two slabs.
However in India Taluk Panchayats play a major role in collection of property tax. All the
benefits/income/gains received as property and the income generated from properties and
the assessment of properties by Taluk Panchayats (local self - government) are studied in
this study. If income generated from properties which exceeds minimum exemption limit,
it is taxable under section 199 of Karnataka Panchayat Ray Act 1993. Under this section
Taluk Panchayats are permitted to issue Form - 9 and Form - 11 for collection of property
from the public. These both documents are issued Taluk Panchayats for non - agricultural
properties in its jurisdictions as per Karnataka Panchayat Raj Act which contains the
assessment list of building and lands liable to taxation, which further emphasis on register
of demand, collection and balance of land and building. Taluk Panchayat will have a
hearing on the budget to decide the amount of money that will be needed so that the
government can cover its expenses with no financial challenges in the year ahead. The
services that are normally funded by property taxes include: education, emergency services,
transportation, libraries and park as well as different recreational activities.

TYPES OF TAXES
Taxes are of two distinct types, direct and indirect taxes. The difference comes in the way of
these taxes are implemented. Some are paid directly by you, such as the dreaded income
tax, wealth tax, corporate tax etc... While others are indirect taxes, such as the value added
tax, service tax, sales tax etc....
1. Indirect taxes
But, besides these two conventional taxes, there are also other taxes that have been brought
into effect by the central government to serve a particular agenda. 'Other taxes' are levied on
both direct and indirect taxes such as the recently introduced Swachh Bharat Cess tax,
Krishi Kalyan cess tax, and infrastructure cess tax among others.
2. Direct tax:
Direct tax, as stated earlier, are taxes that are paid directly by you. These taxes are levied
directly on an entity or an individual and cannot be transferred into anyone else. One of the
bodies that overlooks there direct taxes is the Centre Board of Direct taxes (CBDT) which is
a part of the Department of Revenue. It has, to help it with its duties, the support of various
acts that govern various aspects of direct taxes.

Examples of Direct Taxes:

These are some of the direct taxes that you pay.
1. Income tax
2. Capital gains tax
3. Security transaction tax
5. Prerequisite tax
5. Corporate tax
1. Income tax
This is one of the most well - known and least understood taxes. It is the tax that is levied
on your earning in a financial year. There are many facets to Income tax, such as the tax
slabs, taxable income, tax deducted at source (TDS), reduction of taxable income etc... The
tax is applicable to both individuals and companies. For individuals, the tax that they have
to pay depends on which tax bracket they fall in. This bracket or slab determines the tax to
be paid based on the annual income of the assessee and ranges from no tax to 30% tax for
the high income groups.
The government has fixed different takes slabs for varied groups of individuals, namely
general tax payers, senior citizens (people aged between 60 to 80, and very senior citizens
(people aged above 80).
New Income Tax Slab Rates for F. Y 2017 - 18 (A. Y 2018 - 19)
Income tax slab for Individual tax payers and HUF (Less than 60 years old) (both men and
women)
Income Tax Slab Tax Rate
Income up to Rs. 250000 No tax
Income from Rs. 250000 to Rs. 500000 5%
Income from Rs. 500000 to Rs. 1000000 20%
Income more than Rs. 1000000 30%
Surcharge : 10% of income tax, where total income is between Rs. 5000000 and Rs. 1 crore,
15% of income tax, where total income exceeds Rs.1crore.
Cess: 3% on total Of Income tax + Surcharge
* Income upto Rs. 250000 is exempt from tax it you are less than 60 years old.
Income tax slab for individual tax payers and HUF (60 years old or more but less than 80
years old) (both men and women)
Income tax slab Tax Rate
Incom up to Rs. 300000 No tax
Income from Rs. 300000 to Rs. 500000 5%
Income from Rs. 500000 to Rs. 1000000 20%
Income more than Rs. 1000000 30%
Surcharg : 10% of Income tax, where total income is between Rs. 5000000 and Rs. 1
crore.15% of Income tax, where total income exceeds Rs. 1 crore.
Cess: 3% on total of Income tax + Surcharge
* Income up to Rs. 300000 is exempt from tax if you are more than 60 years but less than 80
years of age.

Income tax slab for super senior citizens (80 year old or more) (both men and
women) Income tax slab Tax Rate
Income upto Rs. 250000 No tax
Income upto Rs. 500000 No tax
Income from Rs., 500000 to Rs. 1000000 20%
Income more than Rs. 1000000 30%
Surcharge: 10% of Income tax, where total income is between Rs. 5000000 and Rs. 1
crore.15% of Income tax, where total income exceeds Rs. 1 Crore.
Cess: 3% on total of Income tax + surcharge
*Income up to Rs. 500000 is exempt from tax if you are more than 80 years old.
Below, you will find a few tables that list out Income tax slab rates for F . Y 2016 – 17 (A.
Y 2017 - 18). These Income tax slab rates are also available for F. Y 2015 - 16 (A. Y 2016 -
17) F. Y 2014 - 15)
Income tax slab for General Tax payers
Income Slab Tax Rate
0 - 250000 No tax
250001 - 500000 10%
500001 - 1000000 20%
Above 1000000 30 %

Income tax slab for Senior citizens (Ages between 60 to 80 years)

Income Slab Tax Rate
0 - 300000 No tax
300001 - 500000 10%
500001 - 1000000 20%
Above 1000000 30 %

Income tax slab for Super Senior Citizens (Ages between above 80 years)
Income Slab Tax Rate
0 - 500000 No tax
500001 - 1000000 20%
Above 1000000 30%

3. Capital gains tax:

This is a tax that is payable whenever you receive a sizable amount of money. It could be
from an investment or from the sale of a property. It is usually of two types. Short term
capital gains from investments held for less than 36 months and long term capital gains from
investments held for longer than 36 months. The tax applicable for each is also very
different since the tax on short term gains is calculated based in the income bracket that you
fall in and the tax on long term gains is 20%. The interest thing about this tax is that the gain
doesn't always have to be in the form of money. It could also be an exchange in kind in
which case the value of the exchange will be considered for taxation.

5. Securities transaction tax:

It's no secret that if you know how to trade properly on the stock market, and trade in
securities, you stand to make a substantial amount of money. This too is a source of income
but it has its own tax which is known as the security transaction tax. How this tax is levied is
by adding the tax to the price of the shares. This means that every time you buy or sell
shares, you pay this tax. All securities traded on the Indian stock exchange have this tax
attached to them.
5. Perquisite tax:
Perquisites are all the perks or privileges that employees may extend to employees. This
privileges may include a house provided by the company or a car for your use, given to you
by .the company. These perks are not just limited to big compensation like cars an houses,
they can even include things like compensation for fuel or phone bills. How this tax is
levied is by figuring out how that perk has been acquired by the company or used by the
employee. In the case of cars, it may be so that a car provided by the company and used for
both personal and official purposes is eligible for tax where as a car used only for official
purposes is not.

6. Corporate tax :
Corporate tax is the Income tax that is paid by companies from the revenue they earn. This
tax also comes with a slab of its own that decides how much tax the company has to pay.
For ex: a domestic company, which has a revenue of less than Rs., 1 crore per annum won't
have to pay this tax but one that has a revenue of more than Rs. 1 crore per annum will have
to pay this tax. It is also referred to as a surcharge and is different for different revenue
brackets. It is also different for international companies where the corporate tax may be
41.2% if the company has a revenue of less than Rs. 10 million and so on.
There are 4 different types of corporate tax. They are
g) Minimum alternative tax
h) Fringe benefit tax
i) Dividend distribution tax
j) Banking cash transaction tax

INDIRECT TAX:
By definition, indirect taxes are those taxes that are levied on goods or services. They differ
from direct taxes because they are not levied on a person who pays them directly to the
government, they are instead levied on products and are collected by an intermediary, the
person selling the product. The most common examples of indirect tax can be VAT (Value
added tax) taxes on imported goods, sales tax etc... These taxes are levied by adding them
to the price of the service or product which tends to push the cost of the product up.
Examples of Indirect taxes:
These are some of the common indirect taxes that you pay.
1. Sales tax :
As the name suggests, sales tax is a tax that is levied on the sale of a product. This product
can be something that was produced in India or imported and can even cover services
rendered. This tax is levied on the seller of the product who then transfers it onto the person
who buys said product with the sales tax added to the price of the product. The limitation of
this tax is that is that it can be levied only ones for a particular product, which means that if
the product is sold a second time, sales tax cannot be applied to it.
Basically, all the states in the country follow their own sales tax act and charge a percentage
indigenous to themselves. Besides this, a few states also levy other additional charges like
turnover tax, and the like. This is also the reason why sales tax is one of the largest revenue
generators for various State Governments. Also, this tax is levied under both central and
state legislations.
2. Service tax:
Like sales tax is added to the price of goods sold in India, so is service tax added to services
provided in India. In the reading of the budget 2015, it was announced that the service tax
will be raised from 12.36% to 14%. It is not applicable on goods but on companies that
provide services and is collected every month or once every quarter based on how the
services are provided. If the establishment is an individual service provider then the service
tax is paid only once the customer pays the bills however, for companies the service tax is
paid only once the customer pays the bills however, for companies the service tax is payable
the moment the invoice is raised, irrespective of the customer paying the bill.
An important thing to remember is that since the service at a restaurant is a combination of
the food, the waiter and the premises themselves, it is difficult to pin point what qualifies for
service tax. To remove any ambiguity, in this regard, it has been announced that the service
tax in restaurants will be levied only on 40% of the total bill.

3. Value added tax:

Value added tax, also known as commercial tax is not applicable on commodities that are
zero rated (e.g. food and essential drugs) or those that fall under exports. This tax is levied at
all the stages of the supply chain, right from the manufacturers, dealers and distributors to
the end user.
The value added tax is tax that is levied at the discretion of the State Government and not all
states implemented it when it was first announced. The tax is levied on various goods sold
in the State and the amount of the tax is decided by the State itself.
For ex: in Gujrat the government split all the good into various categories called schedules.
There are 3 schedules and each schedule has its own VAT percentage. For schedule 3 the
VAT is 1%, for schedule 2 theVAT is 5% and so on. Goods that have not been classified
into any category have a VAT of 15%.

5. Custom duty and octroi:

When you purchase anything that needs to be imported from another country, a charge is
applied on it and that is the custom duty. It applied to all the products that come in vice land,
sea or air. Even if you bring in products bought in another country to India, a custom duty
can be levied on it. The purpose of the customs duty is to ensure that all the goods entering
the country are taxed and paid for. Just as customs duty ensures that goods for other
countries are taxed, octroi is meant to ensure that goods crossing state borders within India
are taxed appropriately. It is levied by the State Government and functions in much the same
way as custom duty does.

5. Excise duty :
This is a tax that is levied on all the goods manufactured or produced in India. It is different
from customs duty because it is applicable only on things produced in India and is also
known as the central value added tax or CENMAT. This tax is collected by the government
from the manufacturer of the goods. It can also be collected from those entities that receive
manufactured goods and emloy people to transport the goods from the manufacturer to
themselves. The central Excise Rule sent by the central government provide suggest that
every person that produces or manufacturers any 'excisable goods' or who stores such goods
in a warehouse, will have to pay the duty applicable on such goods in. Order this rule no
excisable goods, on which any duty is payable, will be allowed to move without payment of
duty from any place, where they are produced or manufactured.

Other taxes:
While direct and indirect taxes are the two main types of taxes, there are also these small
cess taxes that are also seen in the country. Although, they aren't major revenue generators
and are not considered to be as such, these taxes help the government fund several initiatives
that concentrate on the improving the basic infrastructure and maintain general well being of
the country. The taxes in this category are primarily referred to as a cess, which are taxes
levied by the government and the funds generated through this are used for specific
purposes as per the Finance Minister's discretios.

Examples of other taxes:

Below are some of the examples of other taxes that are seen most commonly in India.
1. Professional tax
2. Property tax - Municipal tax
3. Entertainment tax
5. Education cess / surcharge
5. Gift tax
6. Stamp duty, Registration fees, Transfer tax
7. Wealth tax
8. Toll tax and Road tax
9. Swachh Bharat cess
10. Krishi kalyan cess
11. Infrastructure cess
12. Entry tax

SCOPE OF INCOME TAX

1. The income tax act 1961 replaces the Indian Income tax Act, 1922.
2. The objects of the revision was to simplify the IT laws.
3. To simplify the IT act, 1961, Direct Tax code is offing.
4. Applicable to whole of India.
5. Sec. 2(25A) of the Act defines India.
6. Includes all states, Union territories, territorial waters and air space above it territory and
territorial waters.
7. Consists of Twenty three chapters - 2 98 sections and 14 schedules.
8. Sec. 2 defines 48 definitions.

OBJECTIVES OF TAX
Tax is permanent instruments for collecting revenues. It is a major source of revenue in the
developed world and has been appearing as an important source of revenue in the
developing world as well. It has been an instrument of social and economic policy for the
government. The main objectives of tax are as follows.
1. Raise more revenue :
The fundamental objects of taxation is to finance government expenditure. The government
requires carrying out various development and welfare activities in the country. For this, it
need a huge amount of funds. The government collects funds by imposing taxes. So, raising
more and more revenues has been an important objectives of tax.
2. Prevent concentration of wealth in a few hands:
Tax is imposed on persons according to their income level. High earners are imposed on
high tax through progressive tax system. This prevents wealth being concentrated in a few
hands of the rich. So narrowing the gap between rich and poor is another objectives of tax.
3. Redistribute wealth for common God:
Tax collected by the government is expended for carrying out various welfare activities. In
this way, the wealth of the rich is redistributed to the whole community.

5. Boost up the economy :

Tax serves as an instrument for promoting economic growth stability and efficiency. The
government controls or expands the economic activities of the country by providing various
concessions rebates and other facilities. The effective tax system can boost up the economy.
Similarly taxes can correct for externalities and other forms of market failure. Import taxes
may control imports and therefore help the country's international balance of payments and
protect industries from overseas competition.
5. Reduce un employment :
The government can reduce the unemployment problem in the country by promoting various
employment generating activities. Industries established in remote parts or industries
providing more employment are given more facilities. As a result, the unemployment
problem can be reduced to a great extent through liberal tax policy.
6. Remove regional disparities :
Regional disparity has been a chronic problem to the developing countries. Tax is one of the
ways through which regional disparities can be minimised. The government provides tax
exemptions or concessions for industries established or activities carried out in backward
areas. This will help increase economic activities in those areas and ultimately regional
disparity reduces to minimum.
CHARACTERISTICS OF TAX
1. It is enforced contribution.
2. It is generally payable in money.
3. It is proportionate in character, usually based on the ability to pay. It is levied on
persons and property within the jurisdiction of the State.
4. It is levied pursuant to legislative authority, the power to tax can only be exercised
by the law making body or congress.
5. It is levied for public purpose.
6. It is commonly required to be paid a regular intervals.

IMPORTANCE OF TAX
Tax is a major source of government revenue and its contributes for the overall
development and prosperity of a country.
1. Raising government revenue in terms of income tax, custom duty, excise duty,
entertainment tax, VAT, land revenue tax etc... from various sectors in order to
initiate development and welfare programmes.
2. Maintaining economic stability by reducing economic inequalities by means of
equitable distribution of wealth by way of imposing tax to the income earners and
improving the economic condition of the general people.
3. Regulating the economic sectors into right direction by encouraging the production
and distribution of useful goods and discouraging the harmful products by imposing
high tax rate on them.
4. Building and strengthening the national economy by encouraging and protecting
national industries and promoting export trade.
5. Reducing regional economic disparity by encouraging the entrepreneurs to establish
industries in remote and backward regions by giving tax exemptions rebates and
concessions etc...
FEATURES OF GOOD TAX SYSTEM
A tax system is expected to be fair and non discriminatory. For a tax system to meet these
requirements. It must have the following attributes.

1. Neutral:
A Neutral tax must be unbiased across economic activities, and not overly penalise work
in favour of leisure, nor tax income used for saving and investment more heavily than
income used for consumption.
2. Visibility:
A very large segment of the population must be keenly aware that government costs
money, governments spending should be held to levels at which its benefits match costs.
This is a critical factor in most developing countries where the citizenry believe that tax
revenues are not being expeditiously administered.
3. Simplicity:
A tax system should be easy for the government to administer and enforce and be easy
and inexpensive for taxpayers to comply with. Then should be a clear definition of
income and the elimination of multiple layers of tax would create a system that is much
simpler and easier to administer, enforce and comply with.
5. Fairness:
This is often stated as making the rich pay higher share of their income in taxes than the
poor. There should be some amount of income exempt from tax to shelter the poorest
citizens.
5. Convenience:
A good tax system should be convenient in terms of time and mode of payment to the
taxpayer.
6. Administrative efficiency:
A tax system should be such that brings in sufficient revenue to the government. Since
tax payment involves the outflow of money or money's worth from the treasury of
taxpayers, some taxpayers haveadopted many strategies to evade tax.
CANNONS OF TAXATION
Cannons of taxation were first originally laid down by economist Adam Smith in his
famous book. "The wealth of Nations" Adam smith's 4 main Cannons of taxation. A
good tax system is one which is designed on the basis of an appropriate set of principle (
rule)".

1. Cannon of Equity :
It implies that tax should be levied on citizens on the basis of equality. The sacrifice of
all citizens must equal. In other words of Adam Smith "The subjects of every state ought
to contribute towards the support of the Government as nearly as possible, in proportion
to their respective abilities, that is, in proportion to their revenue which they respectively
enjoy under the protection of the state".
2. Cannon of certainity:
This Cannon of taxation suggests that the tax which an individual has to pay, should be
certain and not arbitrary. It should be certain to the tax payer how much tax he has to
pay, to whom and by what time the tax is to paid. The place and other procedural
information should also be clear.
3. Cannon of convenience or Ease:
According to this Cannon of taxation, every tax should be levied in such a manner and at
such a time that it affords to the maximum of convenience to the tax payer.
According to Adam Smith, a good taxation policy must be convenient for the tax payer.
5. Cannon of Economy:
This principle suggests that the cost of collecting tax should be the minimum so that a
major part of collections may bring to the government treasury.
In other words of Adam Smith "Every tax ought to be contrived as both to take our and
kept out of pockets of the people as little as possible over and above what it brings into
the public treasury of the State.
If the administration expenses in the collection of taxes consume a major portion of tax
revenue collected.
Others:
5. Cannon of productivity:
The theory was expounded by Prof. Bistable. According to this Cannon of taxation, the
tax should be of such a nature as a yield sufficient income to the government to run the
administration efficiency and to work for the welfare of the people.
6. Cannon of Elasticity:
The tax system of the government should be elastic so that tax burden may be increased
or reduced from time to time as and when the demand for revenue changes.

7. Cannon of simplicity :
According to this Cannon of taxation, the tax should not be complicated in its nature. It
should be so simple that tax payer can understand its complication the help of any
expert.
8. Cannon of diversity :
The Cannon requires that there should be a number of taxes of different varieties so that
every class of citizen may be called upon to pay something towards the national
exchequer. The yield from a number of taxes is more dependable than from anyone. The
reason being that a person can manipulate to avoid single tax.
9. Cannon of desirability or Expediency:
A tax should be expedient or desirable so that the government may defined itself against
the public critical, by advocating its expediency. A tax without any expedient cause will
face severe criticism from the tax payers.

INTRODUCTION OF HOUSE PROPERTY

In India, property is considered a source of revenue. This is why, just as you pay Income
tax, you also need to pay property tax to the government. The property that is taxed
includes buildings or land attached to these buildings. These buildings could fall under 3
categories.
1. Residential houses
2. Offices
3. Factories
Property tax, which is a wealth tax, is imposed under property tax act on immovable
properties in Singapore. It is payable in advance each year and is computed by applying the
applicable tax rate to the annual value of property.
The annual value of property is generally derived based on the estimated annual rent that it
can fetch if it were rented out. In determining the annual value of a property. Irascible will
consider the rentals of similarly property in the vicinity, size and conditios of the property,
and other relevant factors. The annual value of a property is determined in the same manner
regardless of whether the property is let out, owner - occupied or vacant.
The annual value of land is determined at 5% of the market price of the land, when a
building is demolished, the annual value of the land is assessed by this method.
Property taxes are not determined by a single individual who assesses you property and
sends you a bill. The final tax rate is the result of budgets established to provide services, an
assessor's assessment, a country auditor's calculations and laws administered by the law
department of revenue.

HISTORY OF PROPERTY TAX

Property tax has a deep rooted history in India finding a mention in pics like Manu Smriti
and Arthasastra. Which spoke about different tax measures in place at that time. Kings
would levy a small tax on formers and landowners, which would be used to enhance the
treasury of a Kingdom. The Advent of the British brought in a more streamlined process,
with land revenue forming a major chunk of the British treasury. They devised a system of
centralization with respect to land tax, appointing individuals to collect tax on behalf of the
Crown. This gave birth to tax collectors and a formal tax collection system in the country.
In India, the system of direct taxation has been in force in various forms since ancient times.
There are references both in Manu Smriti and Arthasastra to a variety of tax measures. In
modern India income tax was introduced by Sir. James Wilson on 24 July, 1860. It was a tax
selectively imposed on the rich, royalty and Britishers, and hence was not liked by the
powerful. The tax lapsed in 1865 and was re - introduced in a different form in 1867.
MEANING OF PROPERTY TAX
Property tax is a tax assessed on real estate. The tax is usually based on the value of the
property (including the land) you own and is often assessed by local or municipal
government.
Property tax is the annual amount paid by a land owner to the local government or the
municipal corporation of his area. It is most commonly founded on the concept market
value. The tax base may be the land only, the land and buildings or various permutations of
these factors.

DEFINITION OF PROPERTY TAX

Every property is an asset in taxable and the property tax is an annual tax paid by a land
owners to the local governments or the municipal corporation of his area. The property
includes all tangible real estate property, his house, office, building and the property he has
rented to others.

TYPES OF PROPERTY
Property in India is classified into 4 categories which help the government to estimate tax
based on certain criteria.
The different property divisions in the country are mentioned below.
1. Land:
Land in its most basic form, without any construction or improvement.
2. Improvements made to land:
This includes immovable manmade creations like building and godown.
3. Personal property:
This includes movable manmade objects like cranes, cars, or buses.
5. Intangible property:
Something of the individual value that cannot be touched or held. Intangible personal
property can include any item of worth that is not physical in nature. Examples include a
copyright, trademark or goodwill.
Intangible property also known as incorporeal property, describes something which a person
or corporation can have ownership of and can transfer ownership from one person or
corporations, but has no physical substance. It generally refers to statutory creations such as
copyright, trademark or parents.
A copyright does not derive value from the paper it is recorded on, but the property still has
real value that the law recognizes and protects.

TAX PLANNING FOR INCOME FROM HOUSE PROPERTY

You can minimize your tax out go in the following cases.
1. Owing more than one property:
If you own more than one property, then only one house of your choice will be considered
as self - occupied and others will considered as let out or deemed to be let out. Therefore,
you should carefully evaluate and choose a property with less tax liability.
2. Joint home loan:
If you are a joint owner and also apply for a joint home loan then both the co - borrowers
can take a maximum deduction of 150000 each.
3. First house is in a single name and planning a second home:
If your first home is in single name then you can buy a second home in your spouse's name
to help you avoid tax on deemed to be let out property.
5. Joint ownership:
Income from house property can be divided between both the co - owners which can reduce
overall tax liability.

CALCULATION OF PROPERTY TAX IN INDIA :

Property tax in India is calculated on the basis on 'Annual value'. There can be different
annual values for self - occupied and let out properties.
Annual value for let out property:
In case of let out property, the annual value would be equal to the maxim limit of the
following:
1. Municipal valuation.
2. Rent Received.
3. Fair rent as determined by the income tax department3

Deduction allowable:
Deductions are allowed on the interest on the loan to build, buy or repair the property. A
deduction of 30% of the net value is allowed for the repair and maintenance of the property.

Annual value for self - occupied propert :

For self - occupied property the annual value is taken as Zero, provided that the property is
fully used for own residential stay. If the owner doesn't occupy the property, nor he let out,
the annual value of the property would be zero again. If the property is given on rent for a
few months, the annual value will be calculated proportionately.
Deduction allowable:
Owners are entitled to get deductions in the form of interest on loan taken for the
construction or purchase of the property. The interest payable is subject to a maximum of
Rs. 150000 (loan taken on or after April 1, 1999) and Rs. 30000 (loan taken before April 1,
1999).

ADVANTAGES OF PROPERTY TAX

Advantages of property tax are clear and includes:
1. It is technically and administratively possible to introduce and/or maintain in almost
any circumstances.
2. It is cheap to administer and it is possible to aim for a cost yield ratio of 2% or less.
3. It is very difficult to avoid or evade, and collection success rates of as percent are
readily achievable.
4. It is transparent.
5. The public understand the concept of market value and therefore appreciate the basis
of assessment.
6. In general there is a good correlation between assessed value and ability to pay.
7. It is designed correctly the tax can be marginally progressive.
8. The revenue is predictive and buoyant.
9. It is very well satisfied as a source of legally generated revenue for local
governments.

DISADVANTAGES OF PROPERTY TAX

The disadvantages of property tax are less clear than the advantages.
1. The tax is not perfect and often not popular, although it should remembered that
there are no taxes and taxation is never popular.
2. Some of the advantages incorporate hidden disadvantages. The transparency of the
tax reveals any inconsistencies which may become magnified in public perception.
These inconsistencies will be both those of assessment and those of ability to pay.
3. The difficulty of avoiding or evading property tax may make it unpopular. This is
particularly the case in societies where the rich and powerful are accustomed to
manipulating the tax system for their own advantage. These persons tend to be the
most articulate and politically influential and may effectively oppose or undermine
the equitable operation of the tax at the political level.
4. The tax system is dependent upon a pool of technical expertise to create and
maintain a valuation roll, and to establish and conduct the appeals process. It can
restrict progress, especially in the early stages of implementation and it can be time
- consuming and expensive.
5. There is also the problem of building, "" buoyancy" into property tax. In theory
buoyancy is a function of 2 mechanisms. The first of these is the revaluation of
properties at regular intervals. The second is the increase in the rate of tax to produce
the needed revenue. Both are highly political.
USES OF PROPERTY TAX

1. A source of local revenue:

Through the world property taxes are commonly employed as the main source of
locally generated revenue for the good reason that there is no other major source of
taxation revenue that is exactly geographically defined, local revenue may be
generated particularly by rents from local government owned properties.

2. Decentralisation and authority of local government:

Full decentralisation of governments incorporate the power to raise revenue independently
in addition to powers allowing local governments to use the funds as they see fit.
In practical, local government, autonomy is always limited, the duties of local governments
which retreat to a greater or lesser extent from their independence, Increasing independent
power of raising revenues through property taxes thus becomes important.

3. Support for other functions:

Valuation lists complied for local government may be used by other bodies, particularly
those that can be termed "single function authorities" such as water Boards, water charges
are commonly based on the assessment value in the valuation lists. Such procedures are very
cost effective and may have reasonable correlation with water usage in many circumstances.
Drainage boards can also be valuation list, which has advantage over charges related only to
the surface of the property.

PROBLEMS WITH PROPERTY TAX

For home owners and other property owners, property taxes are an unavoidable fact of life
local governments are use property tax revenue to fund important services and run public
school systems.
However property taxes pass several problems for the economy, homeowners and even the
governments that gain revenue through charging property tax.
1. Administrative cost:
One of the biggest problems with property taxes is the high level of administrative costs.
Governments must keep track of home values by employing assessors who inspect
properties. Study market trends and determine the added value of a new addition or home
renovation. Governments with specific income goals can adjust property tax rates to fulfill
their financial needs, but this too takes time and money, compared to sales tax and other
forms of local revenue. Property tax is a complex system that lacks efficiency.

2. Rate disparity:
Each local government sets its own property tax rate based on a variety of factors. The
widespread disparity in property taxes from state to state and commonly to community.
High property taxes can discharge new residents from moving to a community and raising
rates during on economic downturn can force residents to move elsewhere of escape high
taxes. At the same time, communities that can afford to lower property taxes can attract new
residents and gain an advantage over communities that are in need of population and income
growth.

3. Appeals and fairness:

Property tax program allow home awareness to file an appeal or a compliant requesting a
lower assessment. Besides giving tax payers a possible opportunity to pay less, this also
adds to administrative costs, as a government must review assessment and rule on their
fairness in light of the information a home owner provides. Because reduced assessment
only applied to those who file appeals, other residents of community may see the system as
being unfair and favoring those who choose to file an appeal or attempt to manipulate the
system.

5. Discouraging improvements:
Property taxes can play into discouraging home improvements, thereby contributing to
neighborhood degradation. If home owners or reluctant to make improvements because of
the fear of a higher assessment and a higher tax liability, they may allow homes to fall into
despair before selling. This can draw down property value gradually, reducing government
revenue by lowering the tax base.
5. Negative impact:
Property taxes also reflect on the governments that levy them property tax rates become
known as undesirable places to live, which local governments that use high property taxes to
find important programs may appear to be insensitive to the financial needs of taxpayers
raising property taxes can harm the image of a local government.
TAX ON SALE OF PROPERTY TAX IN INDIA
At the time of any real estate transaction, there are several taxes on sale of property. Some
of these taxes on sale sale of property are to be borne by the buyer and some are borne by
the seller. Moreover, there are some taxes on sale which are levied country wide and there
are some taxes on sale are levied on specific states only.
The taxes levied on sale of property are:
1. Capital gains tax
2. This at 1%
3. Service tax on property
5. VAT on property
5. Stamp duty on property

1. Property gain tax on sale of property:

Capital gains tax is levied on the profit capital gain that arises at the time of sale of property
this tax is to be paid by the seller of the property and is required to be paid by all taxpayers
irrespective of the state in which the property is situated.
The capital gain would be computed in the following manner:

Sale price ***

(Less) cost of acquisition ( ***)
(Less) cost of improvement ( ***)
Capital gain tax ***
If the property was held by the seller for a period less than 3 years, tax would be levied as
per the Income tax slab rates of the individuals.
If the property was held for more than 3 years, capital gain tax would be levied at the rate of
flat 20%. In case of long term gains, benefit of indexation would also be allowed to the
seller of property.
In case of long term capital gains, if the seller reinvents the amount in specified investments,
he can also avail of exemption from capital gains tax.
2. TDS at 1% on sale of property:
With effect from 1st June 2013, the buyer of the property is required to deduct TDS at 1%
from the amount payable to the seller. This amount is then required to be deposited by the
buyer with the Income tax department.
The buyer does not have to pay this amount from the mount payable to the seller. TDS 1%
is required to be deducted from the amount payable to the seller. TDS on property is
required to be paid by all taxpayers irrespective of the state in which the property is situated.
However, TDS on property at 1% is only applicable if the Rs. 50 Lakhs.

3. Service tax on sale of property:

If the property that is being sold on under construction property. Service tax would also be
paid on such property. This service tax component is only required to be paid, if the
property is under construction and not in case of fully constructed properties.
The effective rate of service tax on property is 3.625% or 5.35% depending on the size of
the property and the transaction value. Service tax on property is required to be paid by all
taxpayers irrespective of the state in which the property is situated. This service tax is
required to be paid by the Buyer to seller who in turn deposits it with the government.

5. VAT on sale of property :

As VAT is a state level subject, some states levy VAT on sale of under - construction
property and some states don't levy any VAT on sale of under construction property. VAT
is required to be paid by the buyer to the seller who in turn deposits it with the government.
5. Stamp duty on sale of property:
At the first time of transfer of title of property and registration with the government, stamp
duty is required to be paid on property. The rate of stamp duty differs from state to state.
Some states also give a concession in case the new owner of property is a female.

INTEREST ON PROPERTY TAX

Late payments towards property tax can attract a fine generally equivalent to a certain
percentage of amounts dye. This interest varies from state to state, with some states
choosing to waive off such interest and other charging rates from 5% to 20% depending on
their individual policies. For example, some states waived off penalties on property tax
while Bangalore decided to slash interest for late payment from 20% to 10% in a bid to get
more people to pay their dues.

SECTION 80C AND PROPERTY TAX

Individuals who purchase a new house can claim deductions U/S 80C of the income tax act.
Under this clause, deductions can be claimed for stamp duty and registration charges which
could add up to around 10% of total cost of a house. Deductions claimed under this section
are subject to the condition that they do not exceed Rs. 1.5 lakes.

TALUK PANCHAYAT ROLE IN COLLECTION OF PROPERTY TAX

Under the clause 199 of Karnataka Panchayat raja Act, 1993 the Taluk Panchayats can levy
tax on land and buildings with the limits of their respective geographical area that are not
subject to agricultural assessment. This levy is subject to the exemption and maximum rate
specified by the state government.
Taluk Panchayats are empowered with the most number of taxation powers relative in
district and intermediate Panchayats and property tax forms most important source of own
revenue for Taluk Panchayats. In Karnataka all the Taluk Panchayats has to levy property
tax - section 199 provides the said powers and manners in which the assessment is made.
The rate at which the tax is to be assessed is provided by state government.
In Karnataka the Taluk Panchayats which are local bodies in the rural areas maintain tax
accounts of properties with the village limits. These records are maintained as per the
"Karnataka Panchayat Ray act (Budget and Accounts rules) 2006. These Taluk Panchayats
are create and maintain documents called Form - 9 and Form - 11 which are used as
substitute documents for registration and sanctioning loans by bank and financial
institutions. The mainobjectives off Taluk Panchayats is to provide civic amenities to
citizen and collect property tax.
Form-9 and Form-11 are essentially instruments for collection and they are mandatory
documents for non - agricultural properties coming under the jurisdiction of Taluk
Panchayats for carrying out registration.

USE OF E-SWATHU BY TALUK PANCHAYATS FOR COLLECTION OF

PROPERTY TAX
To regulate the good property management system, the Hon'ble High Court of Karnataka
introduced /designed E - SWATHU to cater the needs of managing non agricultural property
records of rural area all across the State.
This has resulted in inserting large set of illegally created properties without the following
prescribed procedures into demand registers.
Through E - SWATHU Taluk Panchayats are able to

1. Process to undertake updations due to various transactions such as sale, inheritance,

participation gift, will and land acquisition, etc...
2. Facilities to create new property records which are coming up after following due
process under law.
3. Issue of records as and when owners /citizens demands for it.
4. Electronic data exchange with registration departments and with local town planning
authorities about property tax records.
5. Apart from these roles Taluk Panchayats use collected property tax amount to fund
for various development activities and to fund for various schemes introduced by the
central and state governments.
CHAPTER 5
DATA ANALYSIS AND INTERPRETATION
Table 5.1
Showing the age of respondents

Age No. of respondents Percentage ((%)

21-30 30 30%
31-40 40 40%
41-50 27 27%
51-60 3 3%
TOTAL 30 100%

ANALYSIS:
From the above chart it can be analyzed that 40% of the respondents are belonging to the
age of 31-40years, 30% of the respondents are belonging to the age group of 21-30 years,
3% of respondents belong to each of 51-60 years.

INTERPRETATION:
Majority of the respondents age group is b/w 31-40 years
Graph 5.1
Showing the age of respondents
Table 5.2
Showing the gender of respondents
Gender No. of respondents Percentage (%)
Male 70 70%
Female 30 30%
TOTAL 30 100%

ANALYSIS:
From the above chart it can be analyzed that 70% of the respondents are male and 30% of
the respondents are female.

INTERPRETATION:
Majority of the respondents were males
Graph 5.2
Showing the gender of respondents
Table 5.3 showing identification of properties which are to be taxable by the Gubbi
Taluk Panchayat

Opinion No. of respondents Percentage (%)

At the time of registration
or transfer of property 33 33%
At the time of licensing 20 20%
Both (a)and (b) 27 27%
Through the field work 20 20%
TOTAL 100 100%

ANALYSIS:
From the above chart it can be analyzed that 33% of the respondents says that they identifies
the properties at the time of registration or transfer of property, 27% of the respondents says
at the time of registration prefer of properties and at the time of licensing, 20% of the
respondents says at the time of licensing and they identifies the properties at the time of
licensing

INTERPRETATION:
Majority of the respondents says at the time of registration or transfer of property
Graph 5.3
Showing identification of properties which are to be taxable by the Gubbi Taluk
Panchayat
Table 5.4
Showing the respondents of opinion regarding the method they prefer to record the
property tax information.

Opinion No. of respondents Percentage (%)

Computer recording 53 53%
Manual recording 37 37%
Both manual and computer
recording 10 10%
TOTAL 100 100%

ANALYSIS:
From the above chart shows that 53% of the respondents prefers computer recording, 37%
of the respondents prefers manual recording and 10% of the respondents prefers both
manual and computer recording to record information about property tax.

INTERPRETATION:
Majority of the respondents opinion says computer recording
Graph 5.4
Showing the respondents of opinion regarding the method they prefer to record the
property tax information.
Table 5.5
Showing Gubbi Taluk Panchayat mode of collection of property tax
Opinion No. of respondents Percentage (%)
At the doors of tax payers 10 10%
At the panchayat office 57 57%
Through the bank 30 30%
Through the online 3 3%
TOTAL 100 100%

ANALYSIS:
From the above chart, it can be analyzed that the 57% of the respondents prefers to collect
property tax at the Panchayat Office, 30% of the respondents prefers to collect pr property
tax through the bank, 10% of the respondents prefers to collect property tax at the doors of
tax payers, 3% of the respondents prefers to collect property tax through the online,

INTERPRETATION:
The result shows that, there is no availability of online tax payment system at Taluk
Panchayats.
Graph 5.5
Showing Gubbi Taluk Panchayat mode of collection of property tax
Table 5.6
Showing the respondents opinion regarding period of preference which is better to
collect property tax during financial year.

Opinion No. of respondents Percentage (%)

Beginning of the year 10 10%
End of the year 33 33%
At any time 57 57%
TOTAL 100 100%

ANALYSIS:
From the above chart shows that 57% of the respondents prefers to collect property tax at
any time, 33% of the respondents prefers to collect property tax at the end of the year and
10% of the respondents prefers to collect property tax at the beginning of the year.
The result shows that, the Gubbi Taluk Panchayat collects property tax at any time during
the financial year whenever the tax payers are convenient to pay their tax on properties.

INTERPRETATION:
Majority of the respondents says at any time
Graph 5.6
Showing the respondents opinion regarding period of preference which is better to
collect property tax during financial year.
Table 5.7
Showing the respondents opinion whether Gubbi Taluk Panchayat conduct regular
survey to detect illegal and unauthorized properties.

Opinion No. of respondents Percentage (%)

Yes 47 47%
No 13 13%
I don’t know 40 40%
TOTAL 100 100%

ANALYSIS:
From the chart shows that 46.7% of the respondents says that Gubbi Taluk Panchayat
conduct regular survey to detect illegal and unauthorized properties, 40% respondents don’t
know whether Gubbi Taluk Panchayat conduct regular survey or not, 13.3% of the
respondents says that Gubbi Taluk Panchayat does not conduct regular survey to detect
illegal and unauthorized properties.

INTERPRETATION;
Majority of the respondents says yes
Graph 5.7
Showing the respondents opinion whether Gubbi Taluk Panchayat conduct regular
survey to detect illegal and unauthorized properties.
Table 5.8
Showing the respondents opinion regarding whether present staff at the Gubbi Taluk
Panchayats are efficient in their work in the collection of property tax

Opinion No. of respondents Percentage (%)

I strongly agree 20 20%
I agree 77 77%
I strongly disagree 3 3%
I disagree 0 0%
TOTAL 100 100%

ANALYSIS
From the above chart it can be analyzed that 76.7% of the respondents I agree, 20% of the
respondents are strongly agree, 3.3% of the respondents are strongly disagree, that present
staff at Gubbi Taluk Panchayats are efficient in their working in collection of property tax.

INTERPRETATION:
Majority of the respondents are agree
Graph 5.8
Showing the respondents opinion regarding whether present staff at the Gubbi Taluk
Panchayats are efficient in their work in the collection of property tax
Table 5.9
Showing the respondents opinion regarding whether Gubbi Taluk Panchayat under
take tax awareness.
Opinion No. of respondents Percentage (%)
I agree 43 43%
I disagree 14 14%
I am not sure 43 43%
TOTAL 100 100%

ANALYSIS:
From chart shows that 43% of the respondents I agree and not sure, 14% of the respondents
are disagree with the awareness programmer undertaken by the Gubbi Taluk Panchayat
about properly tax payment among the payers of property tax.

INTERPRETATION:
Majority of the respondents are not agree
Graph 5.9
Showing the respondents opinion regarding whether Gubbi Taluk Panchayat under
take tax awareness
Table 5.10
Showing the respondents opinion whether property tax procedures at the Gubbi Taluk
Panchayat are very efficient and effective.
Opinion No. of respondents8 Percentage (%)
I strongly agree 27 27%
I agree 67 67%
I strongly disagree 3 3%
I disagree 3 3%
TOTAL 100 100%

ANALYSIS:
From the chart shoes that 67% of the respondents I agree , 27% of the respondents are
strongly agree, 3% of the respondents are strongly disagree and disagree the procedures at
Gubbi Taluk Panchayat regarding property tax are efficient and effective.

INTERPRETATION:
Majority of the respondents are agreed
Graph 5.10
Showing the respondents opinion whether property tax procedures at the Gubbi Taluk
Panchayat are very efficient and effective.
Table 5.11
Showing the respondents opinion regarding reasons why the people or property owner
not pays tax property.
Opinion No. of respondents Percentage (%)
Due to their negligence 43 43%
Due to un efficiency of the
collectors 17 17%
Both (a)and(b) 30 30%
By political influence 10 10%
TOTAL 100 100%

ANALYSIS:
From the above chart it can be analyzed that 43% of people do not pay property tax to their
negligence, 30% of the people do not pay property tax due to their negligence and
inefficiency of tax collectors, 17% of people do not pay property tax due to inefficiency of
tax collector and 10% of people do not pay property tax properly.

INTERPRETATION:
The result shows that, majority of the people do not pay property tax due to their negligence.
Graph 5.11
Showing the respondents opinion regarding reasons why the people or property owner
not pays tax property.
Table 5.12
Showing the respondents opinion regarding the changes required for collection of
property tax.
No. of
Opinion respondents Percentage (%)
Advanced procedures 40 40%
Advanced technology 30 30%
Government rules and policies 17 17%
Efficient administration system 13 13%
TOTAL 100 100%

ANALYSIS:
From the chart shows that each 40% of the respondents thinks that changes should be made
by means of advanced procedure, 30% of the respondents thinks that changes should be
made by means of advanced technology, 17% of the respondents thinks that changes should
be made by means of government rules and regulation, 13% of the respondents thinks that
changes should be made by means of efficient administration system, that required for
effective and efficient collection of property tax by the Taluk Panchayat.

INTERPRETATION:
Majority of the respondents opinion is advanced procedures
Graph 5.12
Showing the respondents opinion regarding the changes required for collection of
property tax.
Table 5.13
Showing the respondents opinion regarding problems in property tax collection

Opinion No, of respondents Percentage (%)

Inefficiency of property tax
collectors 33 33%
Shortage of staff in the
department 30 30%
Both(a)and(b) 37 37%
improper procedures 0 0%
TOTAL 100 100%

ANALYSIS:
From the above chart it can be analyzed that 33% of the respondents thinks that, there is
problem of both inefficiency of tax collections and shortage of staff at the department for
collection of property tax, 37% of the respondents thinks that there is a problem of improper
procedures used for determination and collection of property tax, 33% of the respondents
thinks that there is a problem of inefficiency of tax collectors.

INTERPRETATION:
Majority of the respondents opinion prefers both a & b
Graph 5.13
Showing the respondents opinion regarding problems in property tax collection
Table 5.14
Showing the respondents opinion regarding the expected property tax collected in the
previous year.
Opinion No. of respondents Percentage (%)
Average 60 60%
Above average 30 30%
Below average 10 10%
Very less 0 0%
TOTAL 100 100%

ANALYSIS:
From the above chart shows that 60% of the property tax collected in the previous year is
average, 3% of the property tax collected in the previous years is below average, 10% of the
property tax collected in the previous year below average property tax collected in the
previous years.

INTERPRETATION:
The result shows that, the property tax collected by the Taluk Panchayats are meet expected
amount of property tax collection.
Graph 5.14
Showing the respondents opinion regarding the expected property tax collected in the
previous year.
Table 5.15
Showing the respondents opinion regarding their satisfaction level with the amount of
property tax collected at present.
Opinion No. of respondents Percentage (%)
Strongly satisfied 20 20%
Satisfied 77 77%
Strongly not satisfied 3 3%
Not satisfied 0 0%
TOTAL 100 100%

ANALYSIS:
From the above table it can be analyzed that 77% of the respondents are satisfied with the
amount of property tax collected at present, 20% of respondents are strongly satisfied with
the amount of property tax collected at present, 3% of the respondents are strongly not
satisfied with the amount of property tax collected at present.

INTERPRETATION:
The result shows that majority of respondents are strongly satisfied with the amount of
property tax collected at present.
Graph 5.15
Showing the respondents opinion regarding their satisfaction level with the amount of
property tax collected at present.
Table 5.16
Showing the respondents opinion regarding how will they rate property tax collection
in Gubbi Taluk Panchayats.
Opinion No. of respondents Percentage (%)
Very effective 20 20%
Effective 57 57%
Satisfactory 20 20%
Ineffective 3 3%
TOTAL 100 100%

ANALYSIS:
From the chart shows that 57% of the respondents rates that are property tax collection of
Gubbi Taluk Panchayat is effective, 20% of the respondents that the property tax collection
of Gubbi Taluk Panchayat is very effective and satisfactory, 3% of the respondents rates that
the property tax collection of the Gubbi Taluk Panchayat is in effective.

INTERPRETATION:
The result shows that the property tax collection criteria of Gubbi Taluk Panchayat are
effective.
Graph 5.16
Showing the respondents opinion regarding how will they rate property tax collection
in Gubbi Taluk Panchayats.
Table 5.17
Showing the respondents opinion regarding whether Gubbi Taluk Panchayat has
proper system of control in the administration of property tax collection
Opinion No. of respondents Percentage (%)
Yes 50 50%
No 13 13%
I am not sure 37 37%
TOTAL 100 100%

ANALYSIS:
From the above chart shows that 50% of the respondents says that gubbi Taluk Panchayat
as proper system of control in the administration of property collection, 36.70% of the
respondents says that the Gubbi Taluk Panchayat not sure proper system of control in the
administration of property tax collection, 13.3% of the respondents says that the Gubbi
Taluk Panchayat does not proper system of control in the administration of property tax
collection.

Interpretation:
Majority of the respondents are says yes
Graph 5.17
Showing the respondents opinion regarding whether Gubbi Taluk Panchayat has
proper system of control in the administration of property tax collection

s
CHAPTER - 6
SUMMARY OF FINDING, SUGGESTIONS AND CONCLUSIONS

FINDINGS
1) Most of the respondents are belonging to the age group of 31 – 40 years.
2) Most of the respondents think that the tax on land is the major source of property tax
revenue to the Taluk Panchayats.
3) Many of the respondents share their opinion that the Gubbi Taluk Panchayat
identifies properties which are to be taxable at the time of registration or transfer of
properties.
4) Most of the respondents prefers computer recording systems to record information
relating to property tax.
5) Many respondents share their opinion that Gubbi Taluk Panchayat collect property
tax at the panchayat office.
6) Most of the respondents says that the Gubbi Taluk Panchayat prefers to collect
property tax at any time.
7) Many number of respondents agree that Gubbi Taluk Panchayat conduct regular
survey to detect illegal and unauthorized properties.
8) Most of the respondents agree that the tax collectors are efficient in their work in
collection of property tax.
9) Most of the respondents agree that the Gubbi Taluk Panchayat undertake tax
awareness program me to create awareness about property tax payment among the
payers of property tax.
10) Most of the respondents are agree that the property tax procedures at the Gubbi
Taluk Panchayat are very efficient and effective.
11) Most of the respondents say that due to their negligence property owners do not pay
tax properly.
12) Most of the respondents share their opinion that they require changes by means of
advanced procedures.
13) Most of the respondents are not satisfied with the amount of property tax collected at
present.
14) Most of the respondents rates that property tax collection in Gubbi Taluk Panchayat
is effective.
15) Many of the respondents thinks that inefficiency of property tax collectors is the
major problem of collecting property tax.
16) Many of the respondents says that annual property tax collected in the previous years
are average.
17) Most of the respondents says that the Gubbi Taluk Panchayat has proper
administration system in collection of property tax.
SUGGESTIONS:

1) It is better to implement online tax payment system by the government for the effective
collection of property tax by the Taluk Panchayats.
2) Government should appoint more number of staff at the Taluk Panchayats for proper
collection of property tax and other taxes.
3) Taluk Panchayats should adopt advanced methodology and procedures for collection
property tax.
4) The government should frame proper rules and regulations to the Grama Panchayats for
collection of property tax.
5) The staffs at the Taluk Panchayats work efficiently for collection of property tax.
6) Taluk Panchayats should undertake awareness programmes to create awareness about
property tax payment among the property tax payers.
7) Taluk Panchayats should maintain proper records for disclosure of information relating
to property tax collection when they are demanded.
8) Taluk Panchayats should have an efficient administration system for collection of
property tax.
9) Effective application of computer technology will helps for efficient administration of
property tax collection by the Taluk Panchayats.
10) Taluk Panchayats conduct regular survey to detect legal and unauthorized properties.
11) Taluk Panchayats undertake training programmes to those who collect property tax to
their efficiency in collection of property tax.
12) There is a need of Co - operation, Co - ordination and supervision from Zilla Panchayats
and Taluk Panchayats to Taluk Panchayats for efficient mobilization of property tax
revenues.
Direction for future research:
How important the Taluk Panchayats at local level of the Indian constitution?
How to develop the efficient Taluk Panchayat system in India?
It is necessary to advance and modernize the Taluk Panchayat system in India.
CONCLUSION:
Taluk Panchayat is the cornerstone of a local self-organization in India of the Panchayat Raj
System at the village or small town level and has Sarpanch (President) as its elected head.
So, the funding of Taluk Panchayats is an important part of the Panchayat administration.
Local governments mobilize more amounts of funds through taxing on properties and they
use collected amount of revenue to the various developmental activities and to fund for
various social projects and services.
Collection of Property Tax by the Taluk Panchayats is very difficult because of the reason
that there is no availability of proper framework of government rules and regulation,
policies and procedures for collection of property tax, lack of advanced technologies, lack of
efficient administration system at the Panchayat office, while Taluk Panchayats are operate
at rural level, it is very difficult to collect property tax without using proper methodology.
The Taluk Panchayat plays a prime role in collection and administration of property tax at
the rural level and is important to the society and the students or the young generation
people to know the role of Taluk Panchayats in collection of property tax.
BIBLIOGRAPHY
Books:
k) Dr. Vinod K singhania and Dr. Monika Singhania (2012 - 13) student Guide to
Income Tax. New Delhi ; taxman publications.
l) ICAI (2013) Taxman. New Delhi : The publication Department of ICAI.
m) Dr. Yogendra Bangar, Dr. Vandana Bangar and C A. Vineet Sodhani (2012 -
13)Students Guide to direct taxes, Jaipur: Aadhya Prahashan Pvt. Ltd.
Journals:
9. Titus S. Zoneh - (August 2013) "A GIS Based Real estate Tax Information System".
10. Valuation cell Income Tax Department "Guide Lines for valuation of Immovable
Properties", Journal of Ministry of finance, Government of India.
11. Yu-che Chang - 2002, "Evaluating the Structural effects of Property Tax Abatemrnts on
Economic Development Across Industries", Dessertation Summary.
12. Jackson R. Sullivian. Jr. "Land use Planning and the Property Tax". Georgia Institute of
Technology.
13. S. Charlot, S. Party, M. Visalli (2008) - "Assessing the Impact of Local Taxation on
Property Orices" a spatial matching contribution.
14. Dele Oluwu (2002) "Property Taxation and Democratic Decentralisation in Developing
Countries". Journal of Institute of Department Studies.
15. Joan Youngman (March/April 1994) "" Introduction to Legal Issues in property
Valuation and Taxation". Assessment journal, please 60-67.

WEBSITES:
www.impotrtantindia.com
www.taxguru.com
www.tumakuruzillapanchayat.gov.in
www.incometaxmanagement.com
www.taxwikipedia.org.in
www.taxadviser.com
“A study on role of Taluk Panchayats in collection of Property tax – Gubbi Taluk Panchayat”

ANNEXTURE
QUESTIONNAIRE
Respected sir/madam,

I am PRATHAP M L Pursuing 4th semester MBA at SSIMS College, Tumkur, have

undertaken a study entitled "A study on role of Taluk Panchayats in collection of
property tax - Gubbi Taluk Panchayat" as part of academic requirements.
I request you to please share your information and opinion sought in this questionnaire. I
assure you that the information collected will be maintain confidential and used only for the
academic purpose.

1. Name:
2. Gender: Male [ ] Female [ ]

3. Age: a) 21-30 [ ] b) 31- 40 [ ]

c) 41 - 50 [ ] d)51 - 60 [ ]

5. Please indicate your designation...................................

5. Work experience with Gubbi Taluk Panchayat.

a) 0 - 5 [ ] b) 5 - 10 [ ]
c) 10 - 15 [ ] d) Above 15 years [ ]

6. In your view which is the major source for collection of property tax from the following.
a) Tax on land [ ]
b) Tax on building [ ]
c) Licence fees for establishment of factories, hotels, restaurants and so on [ ]

Dept. of MBA, SSIMS, Tumkur

“A study on role of Taluk Panchayats in collection of Property tax – Gubbi Taluk Panchayat”

Dept. of MBA, SSIMS, Tumkur

7. How Gubbi Taluk Panchayat the property tax payers?
a) At the time of registration/transfer of property [ ]
b) At the time of licensing [ ]
c) Both (a) and (b) [ ]
d) Through the field work [ ]
8. Which method you prefer to record information about property tax collection?
a) Computer recording [ ] b) Manual recording [ ]
c) Both manual and computer recording [ ]

9. Gubbi Taluk Panchayat collect the property tax -

a) At the doors of tax payers [ ] c) At the panchayat office [ ]
c) Through the bank [ ] d) Though the online [ ]

10. When will you prefer better to collect property tax during the financial year?
a) Beginning of the year [ ] b) End of the year [ ]
c) At any time [ ]

11. Annual property tax collected in the previous year is-

a) Average [ ] b) Above average [ ]
c) Below average [ ] d) Very less [ ]

12. Do you have any problem in property tax collection?

a) Inefficiency of property tax collectors [ ]
b) Shortage of staff in the department [ ]
c) Both (a) and (b) [ ]
d) If any other please specify............................................
13. Does the Gubbi Taluk Panchayat maintain all the records used for collection of property
tax properly?
a) I agree [ ] b) I disagree [ ]
c) I strongly disagree [ ] d) I strongly agree [ ]

15. Does Gubbi Taluk Panchayat conduct regular survey to detect illegal and unauthorised
properties?
a) Yes [ ] b) No [ ] c) I don't know [ ]
15. The present property tax collectors are efficient in their work in collection of property
tax.
a) I strongly agree [ ] b) I agree [ ]
c) I strongly disagree [ ] d) I disagree [ ]

16. Does the Gubbi Taluk Panchayat undertake training programmes for property tax
collectors to increase their efficiency in the tax collection?
a) Yes [ ] b) No [ ] c) I don't know [ ]

17. Does Gubbi Taluk Panchayat has undertake tax awareness program to create awareness
about property tax payment among the payers of property tax?
a) I agree [ ] b) I disagree [ ]
c) I am not sure [ ]

18. Property tax procedures at the Gubbi Taluk Panchayats are very efficient and effective.
a) I strongly agree [ ] b) I agree [ ]
c) I strongly disagree [ ] d) I disagree [ ]
19. In your view why the people or property owners are not pay tax properly?
a) Due to their negligence [ ]
b) Due to inefficiency of property tax collectors [ ]
c) Both (a) and [ ]
d) By political influence [ ]

20. What actions the Gubbi Taluk Panchayat has taken for non payment of property taxes by
the owners?
a) Giving notice [ ] b) Putting penalties [ ]
c) No actions are taken [ ]

21. Do you require changes in the present structure of property tax collection?
a) Yes [ ] b) No [ ] c) I don't no [ ]

22. The major changes in which you are required for property tax collection from the
following.
a) Advanced procedures [ ] b) Advanced technology [ ]
c) Government rules and policies [ ] d) Efficient administration system [ ]

23. What is your satisfaction level with the amount of property tax collected at present.
a) Strongly satisfied [ ] b) Satisfied [ ]
c) Strongly not satisfied [ ] d) Not satisfied [ ]

25. How will you rate property tax collection or revenue mobilization in Gubbi Taluk
Panchayat?
a) Very effective [ ] b) Effective [ ]
c) Satisfactory [ ] d) Ineffective [ ]
25. Does the Gubbi Taluk Panchayat has proper system of control in the administration of
property tax collection?
a) Yes [ ] b) No [ ] c) I am not sure [ ]

26. The collection of property tax is very difficult.

a) I strongly agree [ ] b) I agree [ ]
c) I disagree [ ] d) I strongly disagree [ ]

27. Please, in your view, what strategies should be adopted to encourage property tax
mobikization in Gubbi Taluk Panchayat?
Thanking you,

Signature.