The New Delhi Municipal Council (NDMC) is seeking objections and suggestions on its proposed Property Tax Bye-Laws, 2026, with residents, traders and market associations given until October 23 to submit feedback on a new system for assessing property tax.
The draft bye-laws propose introducing the Unit Area Method (UAM), which would calculate property tax using factors including property age, plot size, covered area, occupancy status and whether the premises are residential or commercial. NDMC has described the proposed framework as an effort to make assessment more transparent, uniform and easier for citizens to understand.
The draft was published on September 24 in Hindi and English newspapers and uploaded on the NDMC website. Since then, the council has held consultations with resident welfare associations and market bodies in its jurisdiction, including associations from Golf Links, Hanuman Road, Babar Road Colony and Khan Market.
Trade organisations, including the New Delhi Traders Association and associations representing Khan Market and Bengali Market, have also been approached. Discussions have focused on how the proposed valuation factors could affect different types of properties and the resulting tax liability for owners and occupiers.
Stakeholders have raised questions about rebates, depreciation for older buildings and the effect of different valuation criteria on the tax payable. These issues are particularly relevant in established parts of the NDMC area, where properties vary substantially in age, size, use and occupancy status.
The proposed rules also seek to strengthen online self-assessment, simplify tax calculations and improve digital payment facilities. NDMC has said these measures are intended to reduce disputes between taxpayers and the administration by making the assessment process more accessible and easier to verify.
An NDMC tax department official said wider public participation was essential to developing a fair and accessible taxation system. The council will examine the objections and suggestions received before proceeding with the statutory process for finalising the bye-laws.
The proposed valuation methodology may also be referred to the Municipal Valuation Committee wherever applicable. Until the consultation and statutory process are completed, the final form of the bye-laws and their effect on individual properties remain undecided.
