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The initiative steps taken by gram panchayats of Dakshina Kannada district, Karnataka, India is facing a problem in form of property tax.

National Informatics Centre (NIC) has released 'Aasthi Terige' (property tax) a system to help Gram Panchayats calculate and collect property tax. However the software is unsuitable for this project, as it is different from the system of property tax in DK district. According to the Panchayat Raj Act gram panchayats had to fix annual rental value (ARV) and 10 per cent of ARV has been calculated as property tax. According to the new guidelines property tax should be fixed based on the square feet of buildings classified in three categories-thatched, tiled and concrete houses. The property tax fixed based on the discussions in such committees was found five times more than the previous taxes. So Gram Panchayat secretaries to put the software to use by calculating property tax based on property tax.

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