Development work in Capital pushes property tax rates north
If you live in Lajpat Nagar or Rohini, be prepared to cough up a higher rate of property tax from the next financial year.delhi Updated: Jun 02, 2011 23:23 IST
If you live in Lajpat Nagar or Rohini, be prepared to cough up a higher rate of property tax from the next financial year. These colonies, along with 123 others, have come up for an upgrade, by at least one level, to higher tax slots due to the development work — new subways,
bridges, public parks, beautification — in these colonies in the past few years.
The Municipal Valuation Committee (MVC), comprising taxation experts and constituted by the Delhi government to review property tax in the city, has finalised its report.
“While the recommendations of the earlier MVCs were not accepted by the political wing of the MCD, it would be bound to accept it this time,” said a senior MCD official. The civic agency, which is to implement the recommendations, is preparing a synopsis to be tabled before its standing committee next week.
This re-categorisation would result in a huge jump in the yearly property tax paid by the owners. For instance, if one pays R40,000 for a 100 square metre (1,100 sq ft) property in a category ‘C’ colony such as East of Kailash, after it is upgraded to, say, category ‘A’, one would have to shell out Rs63,000 per year.
In addition to this, five-star hotels, shopping malls, high-end schools and gymnasiums would come under category ‘A’, irrespective of their location.
Currently, the area under the jurisdiction of the MCD has been divided into eight categories, A to H, wherein category ‘A’ stands for upscale colonies, like New Friends Colony, Vasant Kunj and Anand Niketan, which pay the highest tax.
According to MCD officials, the first MVC, in 2004, had placed colonies in different categories. But, a Hardship and Anomaly committee later put certain colonies in lower categories. The recent MVC has turned down the recommendations and reinstated the recommendations of the first MVC.
“Colonies paying taxes as per suggestions of the anomaly committee will be upgraded,” said a senior MCD official.
First Published: Jun 02, 2011 23:22 IST