Commercial property tax: Cheque bounce penalty slashed

Ahmedabad: Ahmedabad Municipal Corporation’s revenue department has reduced the cheque bounce penalty for commercial property tax. Earlier, the civic body used to charge 5% of the tax bill amount or Rs 1,000, whichever is higher. Now, the AMC will charge 5% of the tax bill amount or Rs 1,000, whichever is less. The AMC has not changed the cheque bounce penalty for residential property. It remains Rs 500 or 5% of the bill amount, whichever is less. “For example, earlier, if the cheque of a taxpayer whose tax amount was Rs 10 lakh bounced, he had to pay Rs 50,000 as a penalty. Now, the penalty will be Rs 1,000,” said Jainik Vakil, chairman of AMC’s revenue committee. tnn