MCD plan: All of Delhi could soon be subject to property tax

Residents of the nation’s capital are expected to pay property tax soon as the Delhi Municipality would soon conduct property surveys during which the nature of the properties would be calculated on different parameters.

A senior MCD official said that acting on Lt. Governor Vinai Kumar Saxena’s observation, the company will be provided with the services of a private agency to inspect the properties. This survey will include the number of floors, the nature of the property, whether commercial or residential, and whether it is rented or used solely by the owner. “It will help us to know what people earn from property and to develop policies for collecting property tax,” he said, adding, “There are people who earn lakhs by renting their property. property, by opening PGs, but do not pay property tax in unauthorized settlements and village areas.

LG Saxena had advised last month that all properties within the city limits, both commercial and residential, should be placed under the tax net so that MCD’s revenue would increase and it would be able to provide better services. Concerned that properties, business establishments and people in as much as 65% of Delhi’s geographical area were not paying any property tax, Saxena said it was an unfortunate, unfair and not viable. Currently, most homes in unauthorized settlements, village areas do not pay property taxes.

The LG had asked officials to consider people and RWAs and address their concerns.

“The civic body provides several facilities in these unauthorized settlements including garbage collection, park maintenance, drain cleaning and mosquito repellent operations for which a nominal amount is charged as property tax,” another official said. “For an average BHK 2 house, the taxes would be around Rs 1,000 a year,” he said.

Properties are divided into eight categories for tax collection in the capital – A, B, C, D, E, F, G and H – based on their location.

High-end settlements fall into categories A and B like Golf Links, Vasant Vihar, and localities such as Geeta Colony, Anand Parbat and Sheikh Sarai fall into categories E, F, G and H.

The MCD earns about Rs 2,000 crore from property tax and hopes to double its tax resources by increasing its tax coverage. The three companies’ total annual income from their own revenue is around Rs 6,700 crore, while the total annual salary and pension expenditure for their 1,600,000 employees combined is Rs 8,900 crore, resulting in a budget deficit.

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