How are Taxes Collected by a Panchayat?
In India, a Panchayat is a local government body that imposition and collects taxes from the people living within its jurisdiction. There are different types of taxes imposed by Panchayats, which include property tax, professional tax, water tax, and sewerage tax. Property tax is imposed on the value of land and buildings owned by individuals and businesses. Professional tax is levied on those engaged in certain professions such as engineering, architecture, medicine, etc. Water tax is levied on the consumption of water used for domestic or commercial purposes. Sewerage tax is imposed on the use of sewerage facilities provided by the Panchayat.
Taxes Collected by Panchayat
In India, the term Panchayat refers to a system of rural self-government. It was established in all states of India by acts of state legislatures to build democracy at the grassroots level. It was constitutionalized by the 73rd Constitution Amendment Act of 1992. The second Administrative System Reforms Commission of India (2005 – 2009) has summarized the sources of revenue for the panchayat in that internal resource generation – taxation being one of them. A Gram Panchayat may appoint a tax collector to collect tax quarterly, half-yearly, or in advance as decided by the particular Gram Panchayat. The Tax Collector shall issue receipts in the prescribed forms of all types of collections and he shall also enter all collections in the daily collection register of the Gram Panchayat. According to Article 243(H), the Panchayats have the power to levy, collect and appropriate taxes, duties, tolls, and fees by such procedure of the State Legislature and enable them to make such grants in aid to the Panchayats from the consolidated fund of the state.