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This is an archive article published on April 6, 2010

‘Realistic’ target missed but official happy with response

Despite a more ‘realistic’ target and new schemes to net more property tax payers,the Municipal Corporation of Delhi yet again missed the mark it had set for its property tax collection.

Despite a more ‘realistic’ target and new schemes to net more property tax payers,the Municipal Corporation of Delhi (MCD) yet again missed the mark it had set for its property tax collection.

The civic body raked in a total of Rs 1,084 crore — Rs 675 as property tax and Rs 409 as transfer duty — for the 2009-2010 fiscal. This year,the agency had set itself a target of Rs 1,150,as against last year’s Rs 1,462.

As the last date for filing tax and availing the Amnesty Scheme launched by the MCD ended on March 31,the officials claimed this year’s collection seemed more promising as compared to 2008-2009.

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Last year,the civic agency had collected Rs 1,064 as property tax and transfer duty.

MCD officials claimed the increase in collection — a total of Rs 20 crore — was mainly due to the new Amnesty Scheme introduced this year. Under the scheme,previous property tax defaulters could pay their dues without paying any interest or penalty.

“The last time we introduced the Amnesty Scheme,only 75 per cent of the interest and the penalty had been waived off. This time,however,no interest or penalty was charged from the defaulters,” an official said.

The Corporation also claimed that it was also able to bring more citizens under its tax net after they were identified through the ongoing zonal survey by the Survey of India.

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Around 9.6 lakh taxpayers have paid their property tax dues this time.

The Survey of India has been conducting a survey across the Capital to identify all properties eligible to pay tax. It has already submitted a report of the complete survey of two out of the 12 zones.

The Corporation,however,is still far from bringing all properties in the Capital under the tax net. For,according to its own records,while there are over 40 lakh commercial properties in Delhi,only 30 per cent of the property owners pay tax to the MCD.

Total Rs 1,084 collected against target of Rs 1,150
Rs 675 as property tax
Rs 409 as transfer duty
9.6 lakh people paid tax
Last year,target was Rs 1,462; tax collected was Rs 1,064

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