CA Receives Property Attachment Notice Over Just ₹38 Despite Advance Tax Payment

A property tax payment dispute involving the Nagpur Municipal Corporation (NMC) has drawn attention after a chartered accountant received a property attachment (jabti) warrant over an alleged outstanding amount of ₹38, despite having paid his property tax in advance.

The issue reportedly originated in April 2024 when the taxpayer made an online payment for property tax for FY 2024–25. As the municipal portal did not immediately generate a payment receipt, a second payment for the same financial year was made a few days later. Subsequent verification confirmed that both transactions had been successfully credited, with the earlier payment later being reflected in the portal as an advance payment instead of being adjusted against the applicable financial year's tax liability.

The discrepancy surfaced again while making property tax payment for FY 2026–27. The taxpayer noticed an additional outstanding amount of ₹38 alongside the current year's tax demand. After clearing the amount, the payment receipt identified it as a warrant fee, prompting a review of the property tax account.

Further examination revealed that a property attachment warrant had been issued by the Hanuman Nagar Zone in February 2026 for an alleged short payment of property tax relating to FY 2025–26. According to the taxpayer, the shortfall resulted from the municipal software not applying the rebate associated with advance property tax payments, leaving a residual balance that ultimately triggered recovery proceedings.

The taxpayer approached officials at the zonal office, who reportedly acknowledged that the issue could be linked to a software limitation affecting rebate calculations when property tax is paid more than one year in advance. He was advised to pay the current demand and the outstanding amount before filing a request for rectification.

A senior official from NMC's tax department stated that the matter would be examined. The official clarified that, under the Maharashtra Municipal Corporation (MMC) Act, rebates are generally applicable only to payments made for the current financial year. The civic body indicated that if the system incorrectly handled a future-year payment, the case would be reviewed and appropriate corrective action would be taken where necessary. CA Sansaar