Property tax relief may just be eyewash

The BJP-led municipal corporations’ decision to reduce property tax rates by up to 12% may have been music to many ears. The announcement, however, could turn out be just another pre-election gimmick as the refund, for those who have already filed their returns after self-assessment, may not come.

The BJP-led municipal corporations’ decision to reduce property tax rates by up to 12% may have been music to many ears. The announcement, however, could turn out be just another pre-election gimmick as the refund, for those who have already filed their returns after self-assessment, may not come.

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According to tax experts, a similar announcement was made in 2005, but many people are yet to be refunded.

Rajni Singh (name changed on request) had in 2004-05 paid around Rs 29,000 as property tax at the rate of 15%, which was reduced to 10% for her property in Nehru Place. “I am yet to receive the refund from the corporation even after eight years,” Singh said.

Brig. HK Dhawan, a property tax expert, says there are many like Singh who haven’t received their refunds and the money this year, too, might not come. “In 2005, they had done the same thing. But a lot of people haven’t got their money. The corporations claim that they will adjust the amount against people’s dues next year. However, there is no such provision in the online filling method. If the civic bodies are keen on paying back using Section 123 B (9 & 10) of the Delhi Municipal Corporation Act, they can give directions of final assessment of these properties, can work out the excess and refund the amounts in two months,” Dhawan said, adding that it is quite simple as the section states that if assesses had paid more, they are to be refunded in two months.

The leader of the House in the North Delhi Municipal Corporation, Mahinder Nagpal, has said that those who have paid their taxes after self-assessment according to the new rates will either get it adjusted next year or the excess amount will be refunded.

“In 2005, we had called for a scheme through which property tax if paid for 10 years, major discounts would have been given. However, the matter is in court and, therefore, the payments are stuck,” Nagpal said.

According to a senior civic official, however, there has to be resolution to effect any change. “Nothing will be refunded but adjustments might happen,” the official said.