After NDMC, EDMC Plans Hike In Property Tax Rates Across Colonies
After the North Delhi Municipal Corporation proposed an increment in unit area values, for earning additional revenue through property tax, the East Delhi Municipal Corporation has also announced its plan to increase property tax rates across almost the entire 759 residential colonies under its jurisdiction.
According to the EDMC's recommendations, house tax rates in property categories of C, D and E will be hiked to 12 per cent from 11 per cent. These categories mainly include trans-Yamuna areas such as Sukh Vihar, Shreshtha Vihar, Mayur Vihar and Anand Vihar. The F, G and H categories of colonies will witness a bigger hike - from 7 per cent to 10 per cent - if approved. These categories include lower-value areas and villages such as Geeta Colony, Shahdara, Karawal Nagar, Nand Nagri, etc. The property tax in A and B category colonies (Commonwealth Games Village), will remain unchanged.
Earlier, the North Delhi Municipal Corporation proposed to revise the unit area value component of property tax, in its annual budget. According to NDMC officials, this will result in a nominal rise in taxes across residential colonies. The unit area values have remained unchanged since 2004.
The proposed revision of unit area value for different categories of colonies are:
Category of residential colonies
The revision, if approved by the authority's House and Standing Committee, will help the NDMC earn an additional revenue of Rs 220 crore.
NDMC Plans Interest, Penalty Waiver, For Residents Of Illegal Colonies
Offering relief to the residents staying in unauthorised colonies in the national capital, the North Delhi Municipal Corporation (NDMC) has proposed to waive interest and penalty charges on property tax due since 2004. The standing committee of the NDMC is considering to discount these charges completely till the year 2019-20, and allow people to pay the pending tax amount for 16 years, in four tranches.
In January 2019, the South Delhi Municipal Corporation (SDMC) had also extended a tax amnesty scheme to the residents. While the scheme was applicable to property owners of unauthorised colonies only initially, it was later extended to 1,398 colonies in eight categories (A-H) under the SDMC jurisdiction. Under the scheme proposed by the south Delhi corporation, property owners are entitled to full waiver on interest and penalty if they clear the previous dues by March 3, 2019.
The East Delhi Municipal Corporation (EDMC) also launched an amnesty scheme in January for property tax defaulters in order to raise revenue. The authority had decided to extend the benefit on all areas under its jurisdiction, including authorised colonies, industrial colonies, residential colonies, commercial areas. The last date to avail of this waiver is March 31. This scheme has been launched because a lot of homeowners whose properties are in ‘unauthorised’ and ‘unauthorised regularised’ colonies are still out of the tax net.
With inputs from Housing.com News