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MCD to issue public notice on tax arrears

Staff Reporter

New Delhi: The Municipal Corporation of Delhi (MCD) has decided to issue a public notice to clear air on the method for recovery of property tax arrears.

The decision was taken following discussions on the issue at the MCD Standing Committee meeting here on Thursday with the councillors, cutting across the party lines, alleging that arrears were being recovered as per the old Cost Method in violation of the Delhi Municipal Corporation (DMC) Act.

The Assessment and Collection Department had despatched over three lakh demand notices earlier this year seeking arrears as per the Cost Method. Though the decision was later reversed, the taxpayers were not duly informed about it leading to confusion and allegations of corrupt practices.

"As per Section 116 G of the DMC Act, the taxpayer is free to get his arrears settled either under the Unit Area Method or the Cost Method. But the masses are not aware of the law and are thus being exploited by the MCD officials," said senior BJP leader Vijender Gupta, raising the matter in the meeting. Mr. Gupta further said verbal directions had been issued to the MCD officials to calculate arrears as per the choice of the taxpayer but no steps were initiated to inform the people about it.

Leader of the House Jitender Kochar also emphasised the need for a clarification on the matter. Congress Councillor Sanjay Puri said the demand notices had defeated the cause of introducing the Unit Area Method.

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