i have a plot 300sq yards bought from cooperative housing society which had obtained approved layout from muncipal corporation of hyderabad 30 years back. When we applied for permission for construction , the town planning is insisting for latest property tax receipt. Till now my plot is not assessed for tax. when i approached tax inspector he is asking to pay vacant land tax for 30 years @ 0.5% of market value( which comes to around 16500/- x 30=4,95,000).my plot neighbours who constructed house (same plot size) are paying house tax @Rs 2000/- per year (approx. 1Rs/sqft of built up area).
my question is since my plot forms part of an approved layout plan of MCH , the plot is no no longer vacant land and hence no vacan land tax needto be paid.
Please clarify the legal position and course of action to pay least amount of tax.
