The New Delhi Municipal Council has proposed a new property-tax system that could give a 30% concession to women, senior citizens and persons with disabilities on eligible self-occupied residential properties, while making the public consultation process open until 23 October. The draft Unit Area Method is intended to replace NDMC’s existing rateable-value-based assessment system.
Under the draft, men aged 65 years or above, women of any age and persons with disabilities would be eligible for the proposed concession on one self-occupied residential property. The relief would apply only to properties built on plots measuring up to 100 square metres, according to the proposal reported by Jagran.
The proposed system would calculate property tax using several factors, including the use of the property, the age of the construction, the structure of the building, whether it is self-occupied or rented, and the availability of basic facilities in the area. Road width would also influence the applicable tax rates, creating a system in which properties in areas with different street conditions could be assessed differently.
The draft also proposes additional tax for vacant plots. However, a plot with construction covering 25% of its area would be treated as liable for normal tax, according to the report. The proposal would allow taxpayers to pay their dues either in a single payment or in four equal quarterly instalments.
A taxpayer making a one-time payment by 30 June of the financial year could receive a discount of up to 15%, at a rate to be notified by the council. Delayed payments would attract simple interest of 1.5% for every month or part of a month, under the draft framework.
NDMC currently calculates property tax using the rateable value of a property. The proposed Unit Area Method would bring its assessment approach closer to that used by the Municipal Corporation of Delhi, where factors such as property size, the owner’s age, the use of the property and the age of the building are considered.
Residents in the NDMC area have reportedly been seeking the adoption of a similar system since 2016. NDMC vice-chairman Kuljeet Chahal said the objective was to simplify the tax system. He said suggestions received during the consultation would be discussed internally before the draft was revised and placed before the council for approval.
The proposal will require several steps before it can take effect. After council approval, an official notification would be issued and sent to Parliament for approval. Following parliamentary approval, a Municipal Valuation Committee would be formed to determine colony categories, tax rates and other assessment factors for areas under the NDMC jurisdiction.
The committee’s recommendations would then be placed before the council. They would have to be approved by the council before being implemented, leaving the final tax rates, colony classifications and operational details dependent on the next stages of the process. Citizens, traders and other stakeholders can submit their suggestions on the draft until 23 October.
