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South Delhi civic body may hike property tax, aims to up revenue by ₹100 crore

The South Delhi Municipal Corporation has proposed to increase property tax on both residential as well as commercial properties falling in its jurisdiction from the next financial year.

delhi Updated: Dec 09, 2017 00:19 IST
Vibha Sharma
Vibha Sharma
Hindustan Times
SDMC,south delhi,municipal corporation
the South Delhi Municipal Corporation has proposed to increase property tax on both residential as well as commercial properties falling in its jurisdiction from the next financial year. (Virendra Singh Gosain/HT PHOTO)

In its budget presented on Friday, the South Delhi Municipal Corporation has proposed to increase property tax on both residential as well as commercial properties falling in its jurisdiction from the next financial year.

It also announced an amnesty scheme to bring eight lakh property owners living in illegal colonies into the tax net and has proposed to put a cap on rebates offered to the existing tax payers.

SDMC commissioner Puneet Goel has proposed to increase the tax on residential properties falling under A and B categories from 12% to 14%, properties falling under C, D and E category to be hiked from 11% to 12% and those falling under F, G and H category from 7% to 8%.

In case of non-residential properties, the agency has proposed to rationalise tax rates. On properties falling under A to F category, it would be 20% and on G to H category, it would be 15%. At present, the tax rates vary from 20-10%, based on various factors and nature of activities. However, these proposals need to get approval in house and standing committee before implementation.

“Besides this, an education cess has been proposed at 1% of payable property tax value. The amount will be used in developing infrastructure in SDMC-run primary schools. We are projecting to increase our tax collection by Rs90-100 crore after implementation of these proposals,” said Goel.

Earlier, the North and East Corporations had also proposed to increase property tax rates in their budget estimates.

Tapping more tax payers

The civic body has proposed to introduce ‘amnesty scheme’ to tap tax payers in rural and unauthorised colonies and waive off their interest and penalty on total taxable amount.

“We have also surveyed over 200 government properties in our jurisdiction which have not paid property tax. We are doing correspondence with them to recover an amount of Rs80 crores,” said Goel.

The agency is simultaneously carrying door-to-door survey of tax defaulters and targeting to complete it by May 2018. Till November, 2.65 lakh properties have been surveyed, said Goel.

There is also a proposal to charge service tax at 75% on property tax from the farm houses doing agricultural activities.

Standing committee chairman Bhupender Gupta said that the agency may decide to levy additional taxes on farm houses, used for organising wedding events.

Cap on rebate

The civic body has also proposed to cut the rebates given to regular tax payers as well. For example on timely payment of property tax, the agency has proposed to reduce the rebate from 15 to 10%.

“We have even planned to reduce the plot size from 200 to 100 square metre on which physically challenged persons, women or senior citizen are given rebate,” said a senior SDMC official.

First Published: Dec 09, 2017 00:19 IST