Chandigarh Traders Association Submitted Memorandum to DC on Reduction In Collector Rates

By Tricitynews Reporter

Chandigarh 31^st March:- Kamaljit Singh Panchhi President and L,C Arora Gen. Secy. Of Chandigarh Traders Association Sector 17 has submitted a memorandum to Deputy Commissioner U.T Chandigarh on REDUCTION OF COLLECTORATES in Chandigarh as under.

This is in reference with the subject mentioned above; we wish to bring to your kind notice that the collector rates in UT are abnormally high and   unrealistic than the prevailing market price. This serious anomaly has resulted in a complete breakdown of all transactions related to property in Chandigarh. The properties in the market are available at less than half of the price of current collector rates even after the revised collector rates last year wherein the Administration had reduced collector rates by 10% or so.

In this context we would like to bring to your notice that the Punjab Govt. has reduced the collector rates twice in last nine months resulting steep difference in our rates and their rates. The large gap in property prices in adjoining tricity has prompted the business establishments to migrate which directly mean revenue loss to exchequer. It is also worth to note that after the Demonetization, the value of property has crashed further by  40 to 50% and hence there is dire need to review collectorate in Chandigarh without any further delay.

We feel pinch to submit that our units are also facing extreme financial hardship as a consequence of which we are unable to discharge our financial commitments. With the steep increase in collector rates there are no customer for buying the property which is available at lower prices but stamp duty will be payable on the double of the price. The actual deals will be executed at the actual market price which will be 60% lower than the rates fixed by the Administration. The difference between the actual sale price & the registry price will create major problem with the Income Tax Department who will charge capital gain tax on the registry amount, which will run into crores of Rupees.

We request you to kindly look into the matter and  reduce the collector rates by at least 50% which will  help the citizen of Chandigarh  to finalize the deals which are already stuck up due to high collector rates. By reducing the collector rates even the Administration will earn crores of Rupees in the shape of stamp duty .