SDMC to allow interest rebate to property tax defaulters if they pay before Dec 31

The proposal has received approval in standing committee last week. Chairman Standing Committee, Bhupender Gupta said the scheme will include all property owners who have not submitted tax return from April 2004 or have not submitted return on regular basis.

In a move that will bring relief to lakhs of property tax defaulters in unauthorised colonies, the South Delhi Municipal Corporation has decided to introduce amnesty scheme for residential properties.

There are 400 unauthorised colonies in south Delhi and as per Geospatial Delhi Limited survey, there are 6-7 lakhs people living in them. (HT FILE)

The scheme will provide 100% rebate on interest if property tax defaulters clear the pending dues before December 31.

There are 400 unauthorised colonies in south Delhi and as per Geospatial Delhi Limited survey, there are 6-7 lakhs people living in them. “But only 15 % pay property tax. We want to bring rest of the 85% people under tax net,” said Kamaljeet Sehrawat, SDMC mayor.

Since the civic body proves sanitation services in these colonies, it is entitled to collect the property tax, Sehrawat said.

“Under section 114 of Delhi Municipal Act, the civic body is authorised to collect property tax from vacant lands and buildings falling under its jurisdiction,” an SDMC official said.

The proposal has received approval in standing committee last week. Chairman Standing Committee, Bhupender Gupta said the scheme will include all property owners who have not submitted tax return from April 2004 or have not submitted return on regular basis.

“The scheme will even apply in case of residential properties where the matter is pending before Municipal Taxation Tribunal or any other court and the property owner wants to withdraw the case,” the official said.

“Considering people living in unauthorised colonies do not have proper registry and sale deed, department will accept self affidavit from such property owners,” the official said.

The owners will just have to make a declaration, which will be accepted by the department.

Sehrawat said the proposal will not just help SDMC in increasing its tax net but help people living in unauthorised colonies to prove their ownership right in future.

“We are even in talks with banks to allow residents of unauthorised colonies to raise loans if they pay property tax regularly,” she said.

To assess the actual number of taxpayers in its jurisdiction, the SDMC is already conducting door-to-door survey of properties, which includes unauthorised colonies too.

As per GSDL survey there are 14 lakh taxpayers in south Delhi and out of them only 4.5 lakhs pay property tax. “But we want to confirm the figures and include the addresses as well that’s why fresh survey is being carried. By November 30, first report of the survey will be out,” a senior official said.