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Friday, Sep 20, 2019

South Delhi corporation proposes raising duty on sale & purchase of property

The Delhi government has reduced financial assistance/grants to SDMC from year 2018-19, as a result, SDMC is under financial burden to meet its regular expenditure. Therefore, we propose to raise the duty on transfer of property to 5% from the present 3% for men and 2% for women.’

delhi Updated: Aug 06, 2019 10:18 IST
HT Correspondent
HT Correspondent
Hindustan Times,New Delhi
SDMC proposes raising duty on sale & purchase of property.
SDMC proposes raising duty on sale & purchase of property.(Sonu Mehta/HTfile/Representative image)
         

The South Delhi Municipal Corporation (SDMC) has proposed raising the transfer duty on sale and purchase of properties. It has proposed raising it to a uniform 5% from the present 3% for men and 2% for women.

A proposal in this regard has been readied by SDMC officers and will be presented at the corporation’s Standing Committee meeting on Wednesday. They say it will help the civic body raise its internal revenue. Last financial year (2018-19), it earned ₹3,219 crore and incurred expenditure of ₹3,897 crore, reflecting a budget deficit of ₹678 crore.

A senior official in SDMC, who did not wish to be named, said, “Transfer duty, as part of property tax, is the biggest source of revenue for the corporations. In financial year 2018-19, SDMC earned ₹944 crore in property tax, up by 36% from the ₹694 crore it earned in 2017-18.”

“Similarly, our transfer duty earning also went up by 21% at least from ₹518 crore in 2017-18 to ₹630 crore in 2018-19. The number of taxpayers in our tax net has gone up from 410,000 to 441,000. Still, we are struggling in terms of finances overall, and therefore need to raise transfer duty,” he said.

The proposal prepared reads: ‘The Delhi government has reduced financial assistance/grants to SDMC from year 2018-19, as a result, SDMC is under financial burden to meet its regular expenditure. Therefore, we propose to raise the duty on transfer of property to 5% from the present 3% for men and 2% for women.’

First Published: Aug 05, 2019 21:01 IST