Prepare to pay more as house tax.
The Municipal Corporation of Delhi wants to hike property tax by five per cent. In real terms, that could mean you are likely to pay 50% or more.
The entire MCD area, which is 94% of Delhi, has been divided into eight categories, A to H. Upmarket colonies like Friends Colony, Maharani Bagh and Sunder Nagar are category A (see box). The tax rate for category A and B, which was 12 per cent, could now be 17%.
In real terms, the tax could go up from R25,000 to R35,000 for category A , a 41% hike, and from R14,000 to R21,000 for B category, a 50% hike.
For categories C, D and E, the tax is is proposed to go up from 11% to 16 %, an hike of 46% and for category F, G and H, it could increase from 7 % to 12 % a hike of 70 %.
The MCD says it needs the money to pay off debts.
A decision will be taken in January 2011. If passed, the new tax slabs will be implemented from April.
House tax was increased last year as well, though it was reduced from the proposed five per cent to between three and one per cent.
Though there are approximately 30 lakh properties under MCD, the civic agency collects property tax from only 9 lakh.