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NDMC rejigs property tax

From April property owners in New Delhi will have to pay property tax on the basis of unit area based system, reports Aruna P Sharma.
By Aruna P Sharma | Hindustan Times, New Delhi
UPDATED ON FEB 19, 2008 02:18 AM IST

From April property owners in New Delhi area will have to pay property tax on the basis of unit area based system. This means that properties next to each other under similar use will henceforth be taxed at the same rate. There will, however, be concessions if a building is old and under self-use.

People living in self-owned flats or premises will have to pay less tax under the new system, while rented and commercial properties may end up paying more or as much as they are paying now.

For ushering in the new system, the New Delhi Municipal Council (NDMC) has amended House Tax Bye-Laws and invited public objections. Privately owned properties in Bengali Market, Jor Bagh, Golf Links, Sardar Patel Marg, Malcha Marg, Prithvi Raj Road, BK Dutt colony and multi-storied flats in Lutyens Zone will have the option of paying through this simplified self assessment scheme. (Government properties only have to pay service tax).

NDMC Projects Director Anurag Goyal said the new system is a modified version of the unit area method applicable to the rest of Delhi governed by the MCD.

“Property owners living in self-owned houses and vacant properties will get considerable relief as the rental value or rateable value (RV) of the property on which tax is levied will go down considerably for such properties,” Goyal said.

Privately owned bungalows in Lutyens Zone may have to pay higher taxes. Even commercial buildings, where many of the old occupants are paying low rent, will have to pay more tax.

The base value of a property in the areas administered by NDMC has been fixed at Rs 1,000 per square metre of built up area. This has to be multiplied by various factors for use of the premises, age of the building, etc. As for age of the property, there is a 10 per cent concession if the property is built between 1990 and 2000, 20 per cent for properties built between 1980 and 1990, 30 per cent for properties built between 1970 and 1980 and so on.

The NDMC spokesperson said the new system has been modified in such a way that there is no significant fall in revenue and at the same time there is ‘horizontal equity’.

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