News About MCD Property Tax

• Amnesty scheme for property tax in New Delhi

  The three municipal corporations of New Delhi have developed an amnesty scheme which will provide a waiver of interest and penalties on property tax, if the arrears are paid before February 28th, 2017. This scheme could be availed from the 19th of November. The amnesty scheme will extend beyond February, but under certain conditions. Arrears being paid after March 1st will have a total waiver on the penalty, but 50% of the total interest applicable would need to be paid. This scheme is applicable to all properties, residential or commercial. Presently, property tax has arrears of Rs.2,700 crore with the three municipal corporations. The municipal corporations will be accepting old Rs.500 and Rs.1,000 currency notes for payment to encourage individuals to clear their property tax before the end of March, 2017.

  

• Interest and Penalty Waived Off by MCD in Delhi

  The standing committees of the Municipal Corporations of Delhi (MCD) has recently announced that it will waive off the interest and penalty on property tax arrears that are payable till February 28, 2017. The waiver can be availed by residents of Delhi in all the 3 MCDs. This waiver will be in effect until March 31, 2017, but after February 28, 2017 people will have to pay 50% of the interest on their property tax. The scheme is available for all types of properties. The MCD has decided petition for waivers will be disposed of within a period of 15 days.

  

• 3 Municipal corporations in Delhi Experienced High Property Tax Collection

  Three municipal corporations in Delhi experienced a tax collection for property over Rs.3 crore collectively, in 2 days after the announcement was made for allowing old Rs. 500 and Rs. 1,000 currency notes for property tax up to November 14. According to sources, North Corporation made a collection of Rs.1.17 crore, East Corporation collected Rs.51 lakhs while South Corporation collected the highest being Rs.2.52 crore.

  

• Delhi Municipal Corporation to Charge Not Cleaning Empty Plots or Flats

  In case your home or plot is deserted and not resided for years leading to garbage accumulation in your property, you will be charged a penalty in case you do not have it cleaned. There are many plots and properties that are unused or even abandoned, not only leading to garbage accumulation in east Delhi will face charges but they also have to get dirt or water accumulated in the area cleaned by the corporation and the cost would be incurred to the property tax of plot or land owners. This is majorly to fight the mosquito breeding ground that these areas create.

  

• NDMC takes possession of properties of tax defaulters

  The North Delhi Municipal Corporation attached around 450 properties that failed to pay MCD property tax in the last fiscal. Dedicated teams have also been formed to recover all outstanding dues, such as transfer duty and stamp duty.

  Praveen Gupta, NDMC Commissioner stated that more than 125 commercial establishments have failed to pay transfer duty, which has resulted in financial losses to the municipal corporation. Transfer duty is a surcharge on stamp duty at a rate not exceeding 5% of the total amount specified in the DMC Act. It must be paid in the sale or transfer of an immovable property.

  Gupta said that individuals and builders are required to pay the tax owed to the corporation, as this contributes to the development of the municipality and the provision of civic amenities.

  

• MCD Exempts Vijay Goel’s Haveli by discounting Rs 25 crore tax for 750 houses

  A tax exemption rule has been passed by North Delhi's municipal body for more than 750 heritage structures to simply to win the goodwill of Union minister & BJP leader Vijay Goel, claims the rival parties. This would cost the municipality Rs 25 crore along with the approximate deficit of over Rs 2,700 crore for the running financial year. The beneficiaries of this rule includes the sports and youth affairs minister's family.

  

• East Delhi witnesses an increase in Property Tax

  The East Delhi Municipal Corporation (EDMC) had executed every suggestion made by the Third Municipal Valuation Committee including the proposition to escalate property tax in certain residential areas in East Delhi. As EDMC is going through a financial crunch, they say it is one effective way to bring down the burden on the government when it comes to tax. A continuous economic crisis didn’t do much to outdo the political stresses of the upcoming 2017 elections there and hence the tax hike. In the previous week, the civic body explained it had approved orders to formally roll back the decision to carry out the recommendations, and postpone the 15 percent reduction for property tax until further notice.

  

• SDMC Confident Of Meeting Property Tax Target

  The South Delhi Municipal Corporation (SDMC) said on Thursday that it was confident of achieving a growth in property tax collections for the year, after meeting its target for the year 2015-16. While the SDMC was hopeful of a bigger collection this year, the East and North Delhi Municipal Corporations continue to struggle to meet expectations. An SDMC senior officer stated that although it would take approximately a week to process payments, the corporation would see an increase of 6 to 8 per cent in the first quarter in comparison to the same time last year. This is due to 25,000 more taxpayers making payments this time around as compared to last year. The SDMC also stated that it has targeted a figure of Rs. 715 crore in property tax collections for the financial year.