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This is an archive article published on January 22, 1998

Move on house tax returns is widely criticised

NEW DELHI, January 21: The MCD's new rule which makes filing of property tax returns mandatory for almost all the land owners and tenants of...

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NEW DELHI, January 21: The MCD’s new rule which makes filing of property tax returns mandatory for almost all the land owners and tenants of the Capital has come in for criticism from all sides.

Chairman of the MCD standing committee Shanti Desai opposing the move said: “We had no information about this. We will take up the matter with the Municipal Commissioner V.K. Duggal first thing tomorrow in the standing committee meeting. Since he was out of the country for the last several days, we could not discuss it with him.”

Calling the move preposterous, he said: “This will cause a lot of problems to residents. I don’t think that it should be made mandatory for everyone to file the returns.”

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Echoing the statement, Devraj Sharma, president, all India tenants council said there was no need for dragging tenants into this. “It makes sense for landowners to file returns, but there is no need to drag tenants into this. As it is they have enough problems on their hands. We are studying this rule and trying to find out the exact details before we decide on our next course of action.”

The MCD has made filing of property tax returns mandatory for most of the tenants and landlords in the city for the year ending December 31, 1997.

Owners of vacant land or built up area, including flat owners, who have more than 100 square metre of residential land or those with 50 square metre or more of non-residential land have to file their returns by January 31. Defaulters will be fined Rs 500 plus a sum of Rs 20 per day of delay.

According to this rule, filing of returns is essential for landlords collecting a rent of more than Rs 3,500 per month and tenants paying rent above Rs 3,500. Similarly farmhouse owners will also have to file their returns.

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The move, which according to MCD officials, was supposed to bring transparency in the system and to simplify the process of filing returns, has instead led to all-round criticism as well as panic among the residents.

Says Yogesh Khanna, vice-chairman, apex association of DDA colonies: “We have been inundated with queries from residents. You do not implement a rule which has such far reaching implications so suddenly. Have the MCD officials take into account that half of the properties which are rented belong to landowners staying out of the Capital, many of them abroad. Are they all going to come running back to file their returns? ”

He felt that before making this mandatory, it should be publicised well in advance. “They should ask for suggestions from the citizens before they bring about something new like this. This has led to a lot of confusion and will ultimately lead to harassment of citizens,” he observed.

Meanwhile, Dr Narendra Nath, leader of the opposition in the municipal house, said: “If they really want to simplify the process then since MCD is already carrying out the survey, they should collect details about the additions made in the houses. Instead of harassing the citizens by asking them to go through the entire rigmarole, they should collect the details then and there and help people.”

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