As many as 25,000 city residents paid the house tax in the first four months after the cess was introduced in August, making the Chandigarh Municipal Corporation richer by Rs 3.5 crore. About 10,000 residents (those who paid in first two months) availed a rebate of 40% and another 15,000 paid the cess to avail 30% rebate.

The house tax is applicable to about 80,000 households and the civic body had offered 40% rebate to people depositing the tax till September and then 30% till December 12. The MC has a target to collect Rs 10 crore in house tax.

Those depositing the house tax after December 12 will get a rebate of 20% for the next two months.

MC joint commissioner Rajeev Gupta said, “Our target is to collect the house tax till February and we have proposed heavy penalty for those depositing after that. A person who does not pay the above tax within the prescribed period of 180 days will have to pay 25% extra, along with 12% interest.”

The house tax is being calculated on the vacant part of the plot area (after deducting plinth area) and the total built area as per the permitted floor area ratio (FAR).

Serving and retired personnel of defence forces, widows and physically challenged owning residential lands and building up to 300 square yards have been exempted from house tax.