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Delhi: To boost property tax, SDMC adopts ‘carrot-stick’ policy

In case of unauthorised colonies, pending tax from 2004-2019 will be completely waived and property holders can deposit tax for only two financial years - 2019-20 and 2020-21.

Written by Abhinav Rajput | New Delhi | Updated: September 21, 2020 10:12:59 am
delhi properties tax SDMC, SDMC policy properties, south delhi properties, delhi unauthorised colonies, delhi city news, delhi news, indian express newsThere are around 50,000 commercial properties in South Delhi under the tax net.

The South civic body will be using a ‘carrot and stick’ policy to increase its revenue hit by the Covid pandemic, under which it has come up with an amnesty scheme for property holders to deposit their pending taxes. If they don’t, demand notices would be served to them.

Under the scheme, property holders who pay their outstanding dues by September 30 will be entitled to 100% interest and penalty waiver while those who deposit tax for the current financial year (2020-21) by September 30 will get a 15% rebate, said South body standing committee chairman Rajdutt Gehlot.

In case of unauthorised colonies, pending tax from 2004-2019 will be completely waived and property holders can deposit tax for only two financial years – 2019-20 and 2020-21 – said Gehlot.

In terms of numbers, the SDMC has so far collected Rs 425 crore from around 3.60 lakh properties, which in the corresponding period last year was Rs 550 crore from 4 lakh properties. Seven lakh out of the 12 lakh properties in South MCD alone do not pay taxes. These are mostly unauthorised colonies and villages. If people still do not pay pending taxes, officials said, demand notices would first be issued to commercial establishments. “These demand notices will have details of the taxes not being paid, along with interest calculated, and are legally binding documents,” said a senior official of South MCD.

There are around 50,000 commercial properties in South Delhi under the tax net. Later, notices would be sent to residential colonies as well, he said.

Reacting to the scheme, AAP leader and SDMC councillor Vikas Goyal said instead of asking taxes from unauthorised colonies, the corporation should focus on providing facilities in these areas. “Councillors cannot spend their funds in unauthorised colonies, so why are they asking for taxes? And if they can, then a resolution should be passed in the house that corporators can spend their funds so that it is clear.”

Officials, however, said sanitation, schools, and health facilities are provided in these colonies and more facilities can be provided only if there is money.

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