NDMC may implement UAM to cut property tax up to 50%

NDMC plans to implement the Unit Area Method to reduce property tax by 30%-50% for older properties, enhancing transparency and fairness in taxation.

The New Delhi Municipal Council (NDMC) is set to implement the Unit Area Method (UAM) under the Jan Vishwas Bill, if it is passed by the central government, stated Council vice-chairperson Kuljeet Singh Chahal in a meeting with the New Delhi Traders’ Association (NDTA) on Monday.

NDMC may implement UAM to cut property tax up to 50%

Implementation of the UAM “may lead to a reduction of 30% to 50% in property tax, especially for old and self-occupied properties. The age factor will provide relief for older properties, and bifurcation will allow separate assessment of different portions of a property such as shop and storage. The system also enables self-assessment and online payment, making the process simpler and more transparent, while reducing disputes. The implementation of the UAM will further strengthen the confidence of traders,” said Chahal.

He added “the UAM would ensure uniform taxation for similar properties and eliminate disparities in the tax system, as it will no longer be based on expected rental income, which may vary among residents or establishments within the same colony, but on a uniform unit area basis applicable equally to all.”

Under the UAM, the existing upper tax rate will be reduced from 30% to 20%, providing New Delhi area residents a benefit of 10% in property tax payments. Chahal stated that the NDMC’s tax collection stood at ₹1045 crore last year and is expected to increase to approximately ₹1350 crore this year. “Prior to the implementation of UAM, a detailed consultation meeting will be held with representatives of traders, and their suggestions will be taken into account to make the system more transparent and effective,” said Chahal.