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Calculate tax on your own

By Our Staff Reporter

NEW DELHI, FEB. 28. For paying house tax from the next financial year, property owners in the Capital would have to do their own calculations.

They would first have to determine the covered area and in case it is more than 100 sq. m. they would have to seek the help of one of the architects empanelled by the MCD for this purpose. The next step is to check the category under which they fall from the long list of 1,985 colonies.

This would help in arriving at the unit value, which is different for each category. It ranges from Rs. 630 per sq. m. for A category, Rs. 500 for B to Rs. 200 for G and Rs. 100 for H. For arriving at the annual value of the property, the owner would then have to multiply the covered area and unit value with the age factor. It is 0.5 for buildings that came up before 1960, and 0.6 for properties built between 1960 and 1969; 0.7 (1970 to 1979); 0.8 (1980 to 1989), 0.9 (1990 to 1999) and 1 after 2000.

For all the properties falling in A, B, C, D and E categories, the house tax would be 10 per cent of the annual value. And for those in F, G and G categories, it would be 6 per cent of the annual value.

The Municipal Commissioner, Rakesh Mehta, said the residents can avail of a rebate of 15 per cent on their house tax if they pay their payments by June 30 and that too only in one instalment. In the new system there is provision for quarterly payment of house tax.

Self-occupied residential properties of less than 100 sq.m. and owned by women, senior citizens and physically handicapped can get a further rebate of 30 per cent on the house tax.

For properties, which are not self-occupied residential, the annual value has to be arrived at by multiplying the covered area, unit value and the age factor by use factor. Following representation from the House Tax Department that low multiplicative factors for non-residential use would sharply bring down its revenue collection, Mr. Kelkar in his report has recommended use factor of 10 for Three Star and above hotels, hoardings and towers; a factor of four for business, restaurants and hotels up-to Two Star; a factor of three for industries, entertainment, recreations and clubs; a factor of two for public utilities and a factor of one for properties used for public purposes. For rented commercial properties, the factor would be eight.

For all the non-residential properties, the house tax would be 15 per cent of the annual value. However, for Three Star and above hotels, hoardings and towers, the property tax would be 20 per cent of the annual value.

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