Tiruchi Corporation to Implement UPI for Lease and Tax Collections

12 June 2024

The Tiruchi Corporation has made a significant move to modernize its tax collection system by implementing the Unified Payments Interface (UPI) for collecting taxes, fines, and other charges from citizens. This initiative aims to streamline the collection of property tax, professional tax, water charges, underground drainage user charges, and cable television fees, which are major revenue sources for the Corporation. Additionally, the Corporation generates income from commercial ventures such as markets and shopping complexes, along with entertainment tax, surcharge on stamp duty, and surcharge on sales tax.

According to sources, there are approximately 2.36 lakh property assessments in Tiruchi, with 2.08 lakh being residential and the remainder commercial properties. The revenue collection from various heads amounted to ₹223.65 crore in the 2022-23 financial year, with property taxes alone contributing ₹128 crore. The Corporation estimates that total revenue collection will surpass ₹250 crore in the current year.

Currently, taxes are collected through the Corporation’s main office, zonal offices, and the ‘tnurban e-pay portal.’ Despite these options, many taxpayers still prefer paying at physical tax collection centers. To encourage electronic payments, the Corporation has partnered with City Union Bank to facilitate UPI-based transactions. Commissioner V. Saravanan explained that the new system aims to leverage the latest advancements in tax collection mechanisms.

Modernizing Tax Collection

Under the new system, tax collectors will be equipped with point-of-sale machines. The Corporation has procured 65 handheld devices to enable UPI payments, allowing taxpayers to use various payment gateways, including QR codes, debit cards, and credit cards. Mr. Saravanan noted that since people are already familiar with UPI payments, this transition would make tax payments easy, quick, and secure. The system is currently being trialed in select areas.

Efforts are also underway to collect and verify mobile numbers of taxpayers to facilitate online payments. Once this process is complete, taxpayers will be able to pay their dues online, significantly reducing human interaction in tax collection.

Deputy Commissioner of Revenue D. Narayanan stated that most of the work related to the UPI-linked payment system has been completed. The Corporation expects to fully implement the system within two weeks.

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What taxes and fees will Tiruchi Corporation collect via UPI?

Tiruchi Corporation will collect property taxes, water charges, professional taxes, and trade license fees via UPI. This digital payment method aims to streamline transactions, enhance transparency, and improve convenience for residents and businesses alike.

Can the Tiruchi Corporation collect property tax via UPI?

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