The Hindu : New Delhi News : MCD offers penalty waiver on property tax

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Wednesday, Mar 19, 2008
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New Delhi

MCD offers penalty waiver on property tax

Kunal Diwan

NEW DELHI: Habitual property tax offenders in the Capital with years of accumulated penalty should mark March 31 on their calendars. That is the last date to avail themselves of a 75 per cent penalty waiver that the Municipal Corporation of Delhi has offered, provided they come up voluntarily to clear their dues.

Payment of property tax has long been considered a “taxing” business, with few people understanding the intricacies involved in its accurate estimation and expressing bewilderment at the several “last dates” floated by the civic body.

Calculated on an annual basis April 1 onward, property tax can legally be paid in four quarterly instalments, but a rebate of 15 per cent is available if the entire annual amount is paid in advance in a lump sum before June 30 of the same financial year.

Unit Area Method

But before setting out to pay property tax, one has to first calculate it according to the Unit Area Method that has been in play since April 1, 2004. The Unit Area Method assigns a particular rate per square metre for dwelling areas depending on their type--residential or commercial—and the category of the colony where the property is situated.

The taxable amount also depends on various other factors such as when the building was constructed, whether the structure is concretised or not, the kind of usage it is presently undergoing (industrial, medical, farmhouse, hotel, etc) and whether the dwelling is a DDA or CGHS flat. Additionally, a complete tax exemption is in place for some categories such as village abadi areas (up to 200 sq m plot), war widows, public works buildings and gallantry award winners besides a 30 per cent rebate for senior citizens (over 60 years), differently-abled individuals, war veterans and women.

According to MCD Standing Committee Chairman Vijender Gupta, the property tax form is “comprehensive, self-explanatory and complete in all aspects”. People can pay their property tax online using a credit card or at the various anointed centres across the Capital.

“It is at the discretion of the Department that a 75 per cent rebate on previous years’ penalty has been made available. Each year before the closing of the financial year in March, it is the civic body’s endeavour to try and garner as much pending tax as possible”, he added.

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