Central, State bodies in A.P. owe over ₹5,400 crore to urban local bodies in property taxes
According to the department's latest data, the total outstanding tax dues across Urban Local Bodies (ULBs) amount to approximately ₹5,480 crore. This includes ₹1,680 crore from Central institutions, ₹962 crore from State departments, ₹1,860 crore in Vacant Land Tax (VLT) arrears and ₹978 crore entangled in court cases.
Among State institutions, the biggest defaulter is A.P.-Transco's 132KV Yard in Kalyanadurgam, which owes ₹2.56 crore. In Cheemakurthy, A.P. Social Welfare Gurukula Patasala owes ₹1.34 crore, while the Mandal Revenue Office there owes ₹26 lakh. Other State defaulters include the office of Executive Director of the Scheduled Caste Corporation in Kakinada with ₹27 lakh in arrears towards the Peddapuram ULB, and the Electrical Substation Office in Darsi, which owes ₹25 lakh. Collectively, these top five State institutions owe ₹4.68 crore.
Defaulters among Central entities are even more prominent. The Rashtriya Ispat Nigam Limited (RINL-Visakhapatnam) under the Greater Visakhapatnam Municipal Corporation (GVMC) alone owes the civic body a staggering ₹778 crore on vacant land and an additional ₹584 crore on non-residential properties tax, making it the largest tax defaulter in the State.
Other Central bodies with substantial dues include office of the Development Commissioner of Visakhapatnam Special Economic Zone, which owes ₹33 crore, the Visakhapatnam Port Trust with ₹22 crore and South Central Railway in Vijayawada with ₹13.51 crore. Together, these institutions owe the civic bodies ₹1,430.51 crore.
The Principal Secretary has directed all municipal commissioners to issue statutory notices to these defaulters within a week. Additionally, the ULBs must publicly disclose the names and details of defaulting properties to initiate a more transparent enforcement process.
Officials were also instructed to identify properties not yet captured in the tax network and place notice boards on-site to warn of imminent legal action if dues remain unpaid, especially regarding vacant land holdings.
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New Indian Express
an hour ago
- New Indian Express
CIL lifts restriction on market sale of surplus power from linkage coal plants
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Time of India
3 hours ago
- Time of India
No more partial treatment to pensioners when it comes to commutation of pension in the New Income Tax Bill, 2025
Academy Empower your mind, elevate your skills What did the Lok Sabha Select Committee say about commuted pension? What does this mean? 'When non-employee category individuals received commuted pension from an approved fund, that income was taxed entirely under the head 'Income from other sources,' with no explicit provision for exemption or deduction. This created a disparity in tax treatment, wherein two individuals receiving identical pension benefits from similar sources are taxed differently solely on the basis of their employment status. Recognizing this inequity, the Committee has proposed that a parallel deduction be explicitly allowed under the heads of income 'Income from other sources' for non-employees who receive commuted pension from a fund set up by an insurer.' How does taxation of commuted pension works for private sector employees and what did the new tax bill 2025 say about them? In case the employee receives gratuity – 1/3rd of commuted value of pension is exempt In any other case – 1/2 of the commuted value of pension is exempt Who are considered as non-employees for the purpose of commuted pension under new tax bill 2025? Which type of individual pensioners can benefit from this proposed amendment in tax treatment of commuted pension? What are the different types of pension schemes that qualify as eligible pension schemes under the Income Tax Act? Government: Pensions received by employees of the Central or State Government are fully exempt from tax when commuted, as per Section 10(10A)(i). This includes civil service retirees, armed forces personnel, and those directly employed under statutory departments or ministries. Since these employees serve the government directly, they receive full exemption without any limit on the quantum of the commuted pension. Pensions received by employees of the Central or State Government are fully exempt from tax when commuted, as per Section 10(10A)(i). This includes civil service retirees, armed forces personnel, and those directly employed under statutory departments or ministries. Since these employees serve the government directly, they receive full exemption without any limit on the quantum of the commuted pension. Private: For non-government employees, including those from the private sector, the exemption applies only if the pension is received from a recognized superannuation fund. These are employer-managed funds approved by the Commissioner of Income Tax under the Income Tax Rules, typically funded during an employee's tenure. As per Section 10(10A)(ii), if gratuity is also received, only one-third of the commuted pension is exempt; if gratuity is not received, one-half of the commuted amount is exempt. For non-government employees, including those from the private sector, the exemption applies only if the pension is received from a recognized superannuation fund. These are employer-managed funds approved by the Commissioner of Income Tax under the Income Tax Rules, typically funded during an employee's tenure. As per Section 10(10A)(ii), if gratuity is also received, only one-third of the commuted pension is exempt; if gratuity is not received, one-half of the commuted amount is exempt. Third-party self purchased pension: Under Section 10(10A)(iii), employees receiving pension from an approved pension fund set up by a life insurer (such as LIC or other registered insurers offering group pension schemes) are also eligible for exemption on the commuted portion, subject to specific conditions and approvals granted to the fund under the Income Tax Rules. Is there any other pension scheme apart from superannuation fund and NPS that a private sector employer can offer to its employees? One commonly used retirement benefit is the Employees' Provident Fund (EPF), which is statutorily governed and includes a pension component known as the Employees' Pension Scheme (EPS). While the EPF itself serves as a lump sum savings corpus, the EPS provides monthly pension payments post-retirement, albeit in modest amounts. Employers may also opt for group annuity plans offered by life insurers such as LIC, ICICI Prudential, or HDFC Life. These can be structured as Defined Benefit Plans where the employer pays a bulk premium or annual contributions, and the insurer commits to paying a fixed or variable pension upon the employee's retirement. If the underlying fund is approved by the Income Tax Department, then the commutation of pension received under such schemes can be eligible for tax exemption under Section 10(10A)(iii). Pension given to PSU company employees falls under which category—government or others? Employees of Public Sector Undertakings (PSUs), despite being part of government-owned companies, are not treated as government employees for the purposes of tax exemption under Section 10(10A)(i). This section is restricted to individuals who are directly employed by the Central Government, State Governments, or civil services. PSU employees, such as those working with BHEL, NTPC, ONGC, or LIC, are employed by corporate entities established under the Companies Act or through statutory bodies, and thus are categorized as 'other employees' under the Income Tax Act. Consequently, their commuted pensions fall under Section 10(10A)(ii). Can non-employees mean a private company employee whose employer does not have a pension fund, but that employee invested in an approved pension fund? Such individuals may not be classified as "employees" in relation to a pension-paying entity, but their pension receipts arise from self-funded or individually contracted pension schemes. As such, they fall outside the scope of Clause 19 and are instead covered under the general deduction mechanism introduced in Clause 93(1)(g). Good news for pension ers as the Lok Sabha Select Committee identified a gap in the tax treatment of commuted pension for different types of recipients and thus recommended fixing it in the Direct Income Tax Bill, 2025 The issue was that the tax treatment for commuted pension was not equitable i..e same for all types of pensioners. For government employees commuted pension was fully exempt from tax, for private sector employees it was partially exempt from tax and for non-employees no tax exemption or deduction was even available. This unequal treatment is now proposed to be pensioners can also include employees contributing to a pension plan outside of their employment like LIC Pension Fund, below to know the full the Direct Tax Bill 2025, the Lok Sabha Select Committee said:'The Committee, after a careful review of Clause 19, identified a gap in the equitable tax treatment of commuted pension for different types of recipients. The Committee, therefore, recommended that a deduction for commuted pension, similar to that available to employees under Clause 19, be explicitly allowed under the head "Income from other sources" for non-employees who receive such pension from a fund. Accordingly, the Committee finds no further modifications are necessary for Clause 19 and recommend the acceptance of its remaining provisions as drafted.'Also read: No more higher tax on vacant property as recommended in New Income Tax Bill 2025 due to suggestions by select committee Commutation of pension means that the employee is getting a lump sum withdrawal from the pension Sharma, Company Secretary and Partner, Jotwani Associates explains what the proposed amendment in new tax bill 2025 is about:Amarpal Chadha, Tax Partner, EY India, explains:1. 'Currently, as per the provisions of Income Tax Act, 1961, any commuted pension received by Central/State Government employees or employees of local authority is exempt from tax. In case of employees of any other employer (private), the exemption would be as follows:2. Furthermore, any payment in commutation of pension received from an IRDA approved pension scheme of a life insurance company is also tax exempt. This covers both salaried employees and non-employees like professionals, self-employed persons, explains: 'In the Income tax Bill 2025, it was proposed to continue the exemption (by way of deduction from salary income) for commutation of pension received from IRDA approved pension scheme for salaried employees only. The Select Committee has, therefore, recommended to extend similar tax exemption to non-employees by way of specific deduction under 'Income from other sources' head. This will clear any ambiguity on taxation of such receipts (which, in any case, is a capital receipt) in the hands of non-employees.'Chartered Accountant Suresh Surna agrees with Chadha and adds: 'For all other recipients, including non-employees and those not covered by the specified schemes, the Direct Tax Bill 2025 now provides a full deduction under Section 93(1)(g) for the entire amount received in commutation of pension.'Surana explains that in the context of Clause 93(1)(g) of the Income-tax Bill, 2025, the term 'non-employees' may reasonably extend to include individuals such as private sector employees whose employers do not operate a pension scheme or fund, but who have independently invested in an approved pension fund such as the LIC Pension Fund or similar notified funds under clause 10 (23AAB) of the Income-tax Act, to Sharma, non-employees in the context of the tax bill 2025 can mean independent professionals, legal heirs, nominees, or other recipients who are not in an employer-employee relationship with the pension contributing explains: 'The Committee's recommendation is instead focused on non-employees—individuals who receive commuted pension from an approved fund but are not employees of the organization responsible for setting up or funding the pension scheme. These could include dependents, nominees of deceased pensioners, or beneficiaries under a group insurance-linked pension plan who are not themselves in a contract of employment with the employer. In such cases, the pension income is currently taxed fully under the head 'Income from other sources' because there is no provision analogous to Section 10(10A) for them.'According to Chartered Accountant Namrata Dedhia, 'This recommendation of the committee will benefit self-employed persons contributing to private pension funds and legal heirs of employees, where the pension is commuted, allowing exemptions similar to those available to employees.'Dedhia adds: 'Even if employed individuals contribute to private pension funds outside of their employment, the same would be taxable under the head "Income from Other Sources" and will be eligible for exemption, if commuted.'Sharma explains: 'Under the Income Tax Act, 1961, certain pension schemes are considered 'eligible' for the purpose of availing tax exemptions on commuted pension amounts under Section 10(10A).'According to Sharma, the three broad categories of pension are:Sharma explains that the National Pension System NPS ) is now widely recognized and specifically addressed in Sections 10(12A) and 10(12B), although it has a distinct treatment framework. He adds: 'While NPS is not directly covered under Section 10(10A), certain components such as lump-sum withdrawals do qualify for exemption.'According to Sharma, private sector employers have several options besides NPS and recognized superannuation funds to structure retirement and pension benefits for their employees, depending on their financial strategy and compliance explains:S. Sriram, Executive Partner, Lakshmikumaran & Sridharan Attorneys, agrees with Sharma and adds: 'A private sector employer can offer a private pension scheme to its employees. Private Pension programmes can be offered by non-employers also – for example, LIC can offer a pension scheme to its agents (who are not its employees), a hospital can offer a pension scheme to its non-employee visiting doctors, etc.. But taxability/ exemption on pension from such private plans would be subject to approval of the Scheme by the Income-tax Authorities.'Akhil Chandna, Partner & Global People Solutions Leader, Grant Thornton Bharat, agrees with Sriram and Sharma and adds: 'Apart from NPS and superannuation funds, private employers can also opt for corporate annuity plans and group retirement solutions offered by insurers. Additionally, employee pension schemes can also be managed through private trusts maintained by employers.'Sharma explains:Surana explains:


Hans India
8 hours ago
- Hans India
VRMCHS turned centre for power politics: Parvathareddy
Nellore: YSRCP Nellore district working president and MLC Parvathareddy Chandrasekhar Reddy has alleged that MA&UD Minister P Narayana had vested interests in converting the name of the old educational institution – Venkatagiri Raja High School – as VR Municipal Corporation High School (VRMCHS). Addressing a press conference here on Wednesday, the MLC pointed out that the conversion of name of the school was against the norms with the official machinery turning at the behest of the Minister. He recalled that court has appointed Joint Collector as Special Officer by confining his power to look after the salaries of employees and protection of institution. But the JC had transferred the Rs 1,000 crore worth properties of VR High School to Nellore Municipal Corporation against court guidelines, he criticised, adding that such move will lead to misuse of VRHS properties in the mask of power by the ruling party leaders. The MLC has pointed out that instead of providing seats to the real poor children in the VRMCHS, 90 per cent of the seats against the total 1,063 seats, were given to the people recommended by 264 TDP leaders and students pursuing studies in corporate schools like Sri Chaitnya (32), Ratnam (28) Narayana (28), and 418 students studying in various municipal schools in the city. He also pointed out that against the requirement of 80 teaching staff in VRMCHS, the government has deployed six teachers on deputation and five cluster in-charges and 26 Second Grade Teachers (SGTs). He alleged that instead of purchasing new buses for VRMCHS, buses were hired from Narayana Educational Institutions for Rs 1.2 lakh on monthly rental basis. The MLC questioned, why the coalition government has provided seats based on the recommendations of party leaders, if it is keen on promoting corporate education to the poor.