Live near Metro line? Prepare to pay more tax
Delhi’s Metro has raised the value of real estate all along its route. Now the government wants a share of the pie. It has proposed higher taxes for properties close to Metro lines from next year.delhi Updated: Jun 12, 2010 00:44 IST
Delhi’s Metro has raised the value of real estate all along its route. Now the government wants a share of the pie. It has proposed higher taxes for properties close to Metro lines from next year.
The Municipal Valuation Committee (MVC) constituted by the Delhi government to review property tax in the city has decided to re-categorise residential colonies.
Currently, areas under the jurisdiction of the Municipal Corporation of Delhi (MCD) are divided into categories A to H, with upmarket areas like New Friends Colony, Vasant Vihar, Shanti Niketan in catergory A.
Now the MVC wants residential colonies falling within half-a-kilometre on either side of a Metro line to be upgraded to A category, since these areas have also seen the most infrastructure development.
Most of the colonies in the city will also be upgraded by at least one level.
This change will result in a huge jump in property tax paid by owners. For instance, for a 200 square yard (170 sq m) property in Lajpat Nagar, along which the Metro will run, the current property tax is Rs 2,100. After reclassification from C to A, the tax will go up to Rs 10,000 — almost a five-time jump.
So far, there are 28 category A colonies in Delhi. The MVC wants to raise that number to 100. Many areas in East Delhi, South Delhi and West Delhi have become easily accessible because of the Metro, leading to overall development in infrastructure and other facilities too in these places. “This has to be reflected in property tax too,” said a senior official. The MVC’s final report is ready and will be handed over to the MCD to implement. The civic agency hopes to earn an additional Rs 400 crore per year thereby.
This will be the second time property tax will increase in Delhi. The last hike was in January this year.