Shimla: Hundreds of building owners in Shimla have been taken aback after the Municipal Corporation issued property tax bills covering the period from 2013 to 2026, along with interest on outstanding dues. The move follows a survey that identified thousands of buildings that were not registered with the civic body’s tax department.
The tax demands, which reportedly range from ₹10,000 to ₹1 lakh in most cases, have prompted several property owners to approach the Municipal Corporation, questioning the calculations and the recovery of dues for periods when their buildings may not have existed.
Many owners have argued that the amounts mentioned in the bills are higher than expected. In response, the Municipal Corporation has asked them to submit their objections in writing. So far, more than 40 property owners have formally lodged objections.
Tax Committee to Hear Property Owners
To address the complaints, the Municipal Corporation has constituted a tax committee headed by Additional Commissioner Dr. Bhuvan Sharma. Two elected councillors are also members of the committee.
The committee will summon the concerned property owners and give them an opportunity to present their cases. Dr. Bhuvan Sharma said that owners would be allowed to explain their objections and submit supporting documents. Revised bills would be issued only after the records had been examined and verified.
Property owners whose buildings were constructed in or after 2015 will be required to produce relevant documents establishing when construction was completed. They may also be asked to explain why their properties were not registered with the tax department.
The final decision on disputed tax demands will be taken after the formal hearing process.
Survey Identifies 4,000 Unregistered Buildings
According to the Municipal Corporation’s survey, approximately 4,000 building owners in Shimla had never paid property tax. These properties were neither registered in the civic body’s records nor voluntarily disclosed by their owners.
The Corporation has begun issuing tax bills to these property owners for the first time. Since property tax collection in Shimla dates back to 2013, the civic body intends to recover dues retrospectively from the applicable period, along with interest.
However, the retrospective demands have raised concerns among owners who claim that some buildings were constructed only recently. They argue that the tax liability should reflect the actual date of construction rather than automatically covering the entire period since 2013.
The Municipal Corporation has indicated that such cases will be examined individually, and owners will be able to establish the relevant dates through documentary evidence.
Number of Registered Properties Rises to 36,000
Municipal Corporation records showed approximately 32,000 registered buildings in Shimla as of 2025. The latest survey identified another 4,000 properties, taking the total number of buildings to around 36,000.
Bills for the current financial year have already been issued to approximately 20,000 property owners. The Corporation aims to issue bills to the remaining 16,000 owners by November 15.
The civic body has set a property tax revenue target of ₹30 crore for the current financial year. Bringing previously unregistered properties into the tax system is expected to expand the tax base and improve revenue collection.
Property Owners Responsible for Self-Assessment
Under the Municipal Corporation’s existing procedure, owners constructing new buildings in Shimla are required to approach the tax department and submit a self-assessment form.
The form must include details such as the ward in which the property is located, whether it falls within a core or non-core area, the nature of construction—temporary or permanent—the size of the property and its intended use.
The Corporation calculates property tax on the basis of the information submitted by the owner and does not ordinarily conduct an on-site assessment of every building. It maintains that providing accurate details for tax assessment and registration is the responsibility of the property owner.
Several owners, however, have said they were unaware of the self-assessment procedure and therefore did not register their properties or pay tax.
