What is Nagar Palika?

India is the 7th largest country in the world, located in South Asia and is officially known as the Republic of India. The country comprises 28 States and eight union territories. These are further subdivided into districts and smaller administrative divisions. The administrative division of an Indian state or territory is commonly known as a district or Zilla. This is further subdivided into blocks, municipal corporations, municipalities, and City councils. The Indian villages are governed by a Gram Panchayat. Whereas, the Urban Centres are administered by Nagar Parishad (Municipal Corporation), Nagar Palika (Municipality) and Nagar Panchayat (City councils). These are the third tier of governance in India.

What is Nagar Palika?

Nagar Palika, also known as a municipality, is an urban local body in India. It administers a city with a population of 1 lakh or more. The Nagar Palika bill or the provisions related to urban local government, or Nagar Palika was passed in the 74th Amendment Act of the Indian Constitution, 1992. Under Article 243Q of the Act, every state must constitute such governing units. They are a form of local self-government, who have been entrusted by the Constitution, with certain duties and responsibilities.

This is a three-tier structure –

1. Municipal corporation
2. Municipal council
3. Nagar panchayat

According to the population, every town has been divided into several wards. Every ward has their elected representative. These members are elected for a term of 5 years, by direct election from electoral wards. Seats are reserved for scheduled tribes, scheduled castes, backward classes, and women. Among all the elected members, a president is selected, who presides over and conducts meetings. The administrative affairs of the Nagar Palika are handled by the employees of the state government of India. This includes the chief officer, auditor, sanitary inspector, town planning engineer, medical officer for health, education official, and several other employees of the state public services.

Sources of income – For the smooth functioning of all the programs under Nagar Palika, a steady and adequate supply of funds is necessary. Some of these sources are –

• Income tax levied on land, property, houses, vehicles, electricity, entertainment, water tax.
• Toll tax paid by all commercial vehicles except auto rickshaws.
• Income sourced out of commercial activities like tourist centres, renting and sale of any municipal property.
• Professional tax is paid by all the employers of the government and private sectors.
• Financial grants and loans from the state government.

More about income tax on lands

According to the income tax act, agricultural land in India is of two types – rural agricultural land and urban agricultural land. Urban agricultural lands are located in urban areas and are considered capital assets. Therefore, they need to pay an agricultural land income tax or Capital Gains Tax.

The rural agricultural land capital gain is not taxable as rural agricultural land in India is not considered a capital asset. Therefore, no capital gain or loss is generated from the sale of rural agricultural land. If you are holding unknown agricultural land for more than 2 years, then you need to pay a non-agricultural tax as a long-term capital gain.

Regular purchase and sale of agricultural land as per income tax are taxable under the head of business and profession. The income tax on the purchase of agricultural land on sale excludes TDS on property under Section 194IA. But you are bound to pay property tax on farmland, residential plots, or commercial units.

Once you purchase land, the next step is to attain legal evidence of the property owner. For this, you need to register the property under your name in the Nagar Palika Bhulekh or municipality records. The processing starts after you feed the stamp duty charges applicable on the transaction of property ownership. The stamp duty for agricultural land or other real estate properties varies from state to state.

Difference between Nagar Palika and Nagar Parishad

Both Nagar Palika and Nagar Parishad are a part of the local administrative body. They have been entrusted with some duties and responsibilities by the Constitutional Act, 1992.

What is Nagar Parishad?

Nagar Parishad is also known as the City council. It is an urban local body that administers a city with a population of less than 1 lakh but more than 20,000. The committee consists of a chairman or a mayor with a minimum of 15-20 ward members and 3 nominated members. They are chosen for a term of 5 years by direct election from electoral wards in the Nagar Parishad.

Here, the head of the committee is the chairman, and the official in charge is the executive officer.

What is Nagar Palika?

Nagar Palika or Nagar Palika Parishad is a municipality or municipal council that administers a city consisting of a population of 1 lakh or more. A Nagar Palika generally consists of smaller District cities and bigger towns.

The head of a municipal corporation is the mayor. Though, in most of the states and territories of India, these executive powers have been given to the municipal commissioner.

NAGAR NIGAM / NAGAR PALIKA PARISHAD / NAGAR PANCHAYAT

Nagar Nigam – it is also referred to as Municipal Corporation or Mahanagar Palika. It administers metropolitan cities having a population of more than 1 million.

Nagar Palika Parishad – it is referred to as municipality. It administers a city having a minimum population of 1 lakh and less than it.

Nagar Panchayat – it is also known as the City council. It acts as an urban political unit in India. It administers an urban center having a population of more than 11,000 but less than 25,000.

Who is the head of Nagar Palika?

The Mayor is the head of Nagar Palika. The municipal corporations hold the executive powers as the mirrors are elected directly by the people. A deputy mayor is appointed by the mayor under the Municipal Corporation Act, 1888. The implementation of all the programs related to the corporation is carried out by the executive officers with the coordination of the mayor and councilors.

How many Nagar Parishad are in a state?

There can be more than one Nagar Parishad in a state depending upon the population and size. For example, Rajasthan has 10 Municipal corporations or Nagar Parishad, 34 Municipal councils, and 152 Municipal boards or Nagar Panchayat.

Nagar Palika Services

A list of services has been laid down by the Nagar Palika. Some of them are –

• Water supply
• Hospital facilities
• Roads and Street lighting
• Proper drainage system
• Fire brigade services
• Birth and death registration
• Solid Waste Management
• Provision of public facilities like gardens, parks, and playgrounds
• Promote cultural educational and aesthetic aspects

Nagar Palika list

The Nagar Palika list of India is given below: 

Union territories- based list

Official website of Nagar Palika

The Nagar Palika website is different for States and union territories. One can search as an e-Nagar Palika portal for the particular state. This website provides Nagar Palika helpline number to contact the customer service executives at any time. Also, to lodge a Nagar Palika complaint, you can visit the website.

Through this portal, you can also pay property taxes, Nagar Palika water bill, get your butt or death certificate, marriage registration, sewage connection, and a lot more citizen Services. To place a grievance you can either visit the website or connect via the Nagar Palika number.

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