Pay more tax for owning property in posh colonies | delhi | Hindustan Times
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Pay more tax for owning property in posh colonies

delhi Updated: Feb 09, 2010 00:51 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Residents of posh colonies in the city will have to shell out more money as property tax compared to residents of other localities.

The entire area under the Municipal Corporation of Delhi (MCD) has been divided into eight categories, A to H, wherein category A stands for upscale colonies.

The MCD, in its meeting of the House held on Monday, gave the final nod to the tax jump that include two per cent rise for residential properties falling under category A and B such as New Friends Colony, Vasant Vihar, Anand Lok.

The other categories from C to H will see a rise of one per cent from the previous rate. (see box).

For commercial properties such as multiplexes, big shops, and farmhouses in the city, there has been an increase of 5 per cent from the previous 10 per cent.

"The MCD has divided residential properties from categories for collection of property tax. The MCD commissioner in his budget speech had proposed a flat increase of five per cent across all categories of residential properties. But the MCD House has reduced the burden on taxpayers by approving an increase of mere two per cent for category A and B and one per cent for the remaining categories," said Subhash Arya, leader of the MCD House.

He said a committee has been constituted to further study the possibility of taxing the telecom and electric companies being operated from MCD land.

A first-time tax on production of electricity for commercial purposes and on heavy-duty power generators was also approved by the civic body.

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