Focus on bringing more properties under tax gambit | delhi | Hindustan Times
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Focus on bringing more properties under tax gambit

The South Delhi Municipal Corporation (SDMC) has failed to announce any major civic projects in the upcoming year in its budget. Municipal commissioner Manish Gupta presented a Rs. 2,995.78-crore budget, which was lower than its poor cousin north corporation's budget.

delhi Updated: Dec 07, 2012 23:51 IST
HT Correspondent

The South Delhi Municipal Corporation (SDMC) has failed to announce any major civic projects in the upcoming year in its budget. Municipal commissioner Manish Gupta presented a Rs. 2,995.78-crore budget, which was lower than its poor cousin north corporation's budget.

Gupta said the priority was to bring the expenses at par with the income, and so there wasn't any room for too many new projects.

But he did propose several measures to boost the agency's income. The commissioner proposed to merge certain categories of commercial properties and farmhouses and increase their property taxes. Non-residential rented properties under category A-E will have to pay 20 per cent tax, while those in categories F, G and H will pay 15 per cent tax.

At present, non-residential properties in F, G and H colonies pay 10 per cent tax. Those in C, D and E colonies pay 12 per cent while those in A and B colonies pay 15 per cent. All farmhouses, whether commercial or residential, will have to pay 20 per cent tax.

The corporation has also proposed to decrease the rebate given to widows, physically challenged and ex-servicemen from 30 to 20 per cent. Tax rebates to group housing societies will also be reduced from the 20 to 10 per cent.

Saying that 3Rs — reform, rationalisation and recovery — will govern the south corporation's agenda for 2013-14, Gupta said that instead of hiking taxes, they will try to bring more properties under tax gambit.

"Right now, only 4.25 lakh properties are paying taxes whereas there are more that 14 lakh properties in south Delhi. If we can bring even 10 lakh properties under the scanner, we can increase our revenue hugely," he added.