Rajasthan Municipalities (Urban Development Tax) Rules, 2016

A Compliance Overview for Property Owners and Occupiers in Urban Rajasthan

The Rajasthan Municipalities (Urban Development Tax) Rules, 2016 governs the levy, assessment, collection, and enforcement of Urban Development Tax (UDT) on land and buildings within municipal limits. This rule applies to all municipalities in the state and mandates a structured process for self-assessment, payment, and scrutiny.

1. Scope and Applicability of Urban Development Tax

  • Levy of Tax: Every Municipality in Rajasthan is empowered to collect Urban Development Tax (UDT) on lands and buildings situated within its jurisdiction.
  • Authority: The levy is as per Section 102 of the Rajasthan Municipalities Act, and tax rates and effective dates are notified by the State Government from time to time.
  • Liability: The person primarily liable is typically the owner or occupier of the land or building.

2. Preparation of Assessment List

To ensure fair and consistent taxation, each Municipality must prepare an Assessment List using prescribed procedures:

2.1. Structure of Assessment List

  • Prepared ward-wise, circle-wise, or area-wise.
  • Prepared using Form-I.

2.2. Assessment Procedure by Assessor

The Assessor has the authority to:

  • Inspect properties by entering buildings or lands.
  • Measure area, dimensions, and usage of properties.
  • Enquire from local residents to ascertain property details.
  • Review previous records held by the Municipality or local authorities.

2.3. Unknown Ownership Handling

If the name of the person liable for payment is not ascertainable, the property can be assessed and taxed under the name “Holder of the Building or Land”, without further identification.

2.4. Separate Tenement Assessment

If a building contains multiple tenements, the owner may request individual tax assessment per tenement.

3. Procedure for Depositing Tax

3.1. Public Notice by Municipality

  • The Chief Municipal Officer (CMO) must issue a Public Notice (Form-II) within 15 days of the State Government’s notification under Section 102.
  • The notice must:
    • Be affixed on the notice board of the municipal office.
    • Call upon owners/occupiers to file Self-Assessment Returns (SAR) using Form-III.

3.2. Filing Self-Assessment Return (SAR)

  • The taxpayer must:
    • Calculate tax liability as per the notified rates.
    • Deposit tax in the bank account of the Municipality or at the municipal office.
    • Submit SAR (Form-III) along with:
      • Copy of challan or tax receipt.
      • Submission methods: In person, by post, or online via the e-Governance system.

3.3. Default in Filing Return

If the liable person:

  • Fails to submit SAR, or
  • Submits incorrect SAR, then the Assessor/CMO or an authorized officer may:
    • Inspect the premises.
    • Verify ownership and usage with neighbors.
    • Examine prior municipal records.
    • Assess tax based on findings and initiate recovery proceedings.

3.4. Scrutiny of Returns

  • At least 5% of all SARs must be scrutinized or audited by:
    • The Chief Municipal Officer,
    • The Assessor, or
    • An officer authorized by the State Government.

4. Payment of Tax and Penalty Provisions

4.1. Tax Payment Deadline

  • The tax is payable within the financial year (1st April to 31st March) to which it relates.

4.2. Late Payment Penalty

  • If not paid by 31st March, a penalty of 10% per annum will be imposed on the outstanding amount.

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

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