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Nagpur civic body collects INR 259 crore in property tax for FY25

#Taxation & Finance News#India#Maharashtra

Last Updated : 2nd May, 2025

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Synopsis

According to the Nagpur Municipal Corporation (NMC), 4.26 lakh property owners paid INR 259 crore in property taxes in the fiscal year 2024�2025, excluding INR 50 crore from government agencies. Despite offering rebates for online payments, only 33% of taxpayers utilized digital platforms, contributing INR 88.41 crore. The remaining 67% preferred offline methods, accounting for INR 170.93 crore. Zones like Laxmi Nagar and Mangalwari led in online collections, while areas such as Hanuman Nagar and Nehru Nagar showed higher offline contributions. The NMC faces challenges in bridging the digital divide and improving tax collection efficiency.

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Nagpur Municipal Corporation (NMC) has reported a total property tax collection of INR 259 crore for the fiscal year 2024-25. This amount was collected from 4.26 lakh property owners in the city, which is a significant portion of the 6.30 lakh properties in Nagpur. The total excludes INR 50 crore that was received from the state and central government departments.

The NMC introduced incentives to encourage online payments, including a 15% discount for early payers and a 10% discount for those who opted for digital platforms. However, the response has been relatively mixed. Out of the 4.26 lakh property owners, around 33%, or approximately 1.41 lakh people, utilized the online payment option. These online payments contributed INR 88.41 crore to the overall collection, and taxpayers availed rebates worth INR 11.58 crore.

While the digital payment initiative has seen some success, the majority of taxpayers preferred the traditional offline payment methods. A significant 67%, or around 2.84 lakh property owners, still opted for offline payments, generating INR 170.93 crore. Taxpayers who paid offline benefitted from rebates under the 10% and 5% discount slabs, totaling INR 25.78 crore.

Among the various zones in Nagpur, Laxmi Nagar saw the highest number of online taxpayers, with 28,103 taxpayers contributing INR 11.18 crore. Mangalwari followed closely with INR 9.11 crore collected from 17,606 online payments. Other zones, including Dharampeth and Hanuman Nagar, also showed encouraging figures, contributing INR 7.22 crore and INR 7.27 crore, respectively, through online channels. However, zones like Satranjipura had a much smaller number of online taxpayers, contributing only INR 1.19 crore.

Despite the introduction of online payment rebates, offline payment methods continue to dominate in terms of volume. Hanuman Nagar, for example, saw 42,249 offline taxpayers, contributing INR 9.34 crore, while Nehru Nagar and Lakadganj collectively generated INR 9.5 crore and INR 9.12 crore, respectively, from offline payers. Mangalwari also contributed significantly to the offline revenue, with INR 10.76 crore collected from 29,598 offline property owners.

This reliance on offline payments, despite the NMC's efforts to promote digital payments, points to a deeper issue of the digital divide. While the INR 88.41 crore collected via online payments is an improvement, it still represents only a third of the total tax collected, indicating that a large proportion of Nagpur's property owners prefer the convenience of paying at physical counters.

Next (RBI reports 3.1% rise in India�s housing prices with Kolkata in the lead)