South Delhi Civic Body Disapproves Property Tax Hike for FY 2022-23

If we own a property, we are liable to pay a certain percentage of tax on it. Similarly, a property in Delhi raises an annual MCD tax. Properties like residential, commercial, and undeveloped land will need to pay MCD property tax.

There are different Municipal corporations in Delhi divided according to the area. So, if your property is in South Delhi, you will pay property tax to the South Delhi Municipal Corporation (SDMC), and likewise to the North Delhi Municipal Corporation (NDMC), or the East Delhi Municipal Corporation (EDMC). Apart from this, there are eight categories from A to H under which the Delhi property falls from different areas. So, the percentage of tax and unit area value differs for each type of category.

Read More- Noida Authority Launches Group Housing Plot Scheme

Calculating Property Tax in Delhi

Here is a complete calculator of MCD property tax, including all charges:

Area Unit Value: This price is determined by the built-up area of a property, measured in square meters. The unit area value per square meter varies for categories A to H.

Tax Rate: There is an annual tax rate that MCD decides for each category from A to H.

Age Factor: According to the age of the property, new homes are liable for more tax compared to old ones. However, the value lies between the number of 0.5 to 1.0.

Usage Factor: The usage factor differs according to the property type, as the residential property has a lower value than the nonresidential properties.

Property Unit Area: For this, the calculation considers the built area in square meters.

Occupancy Factors: According to the occupancy, the rate differs from the rental property and has more tax value than owned by the tenants.

Structural Factors: RCC constructions have a heavier tax than low-value projects.

To calculate Property tax, we need to multiply the annual value with the Tax rate. The annual value is the calculation of various parameters: Unit area value per square meter x Property area x Age factor x Use factor x Occupancy factor x Structure factor.

The Rejection to Tax Hike in 2022-23

The SDMC got a proposal for hiking the property tax for the year 2022-23. However, the Standing Committee of the South Delhi Municipal Corporation (SDMC) rejected the proposal, and there has been no hike in the property tax for the year.

The standing committee Chairman of SDMC, BK Oberoi, rejected the proposal to increase the hike in property taxes on residential and commercial properties in 2022-2023. Along with it, there was an announcement of eight new health centers in the jurisdiction.

The Chairman also waived off the previous taxes for the recently regularized properties. According to the scheme, if a person pays the tax for the year 2021-22 for residential property, previous taxes will no longer be applicable. Also, for nonresidential property type taxpayers, the tax will be cleared after paying for the last three years, i.e., 2019-20, 2020-21, 2021-22.

SDMC revised budget estimates for Rs. 4,668.26 crores for the year 2021-22 and for the year 2022-23. It is Rs. 4,826.43 crores.

Other Projects By SDMC

Oberoi, the Chairman also announced setting up a resource center in each SDMC zone for children with Special Needs. Along with it, there has been a hike in the Boy’s Fund from Rs. 40 to Rs. 100 per year.

The Chairman signed an MoU (memorandum of understanding) with the Indian Solar Energy Corporation. To install solar panels on the roofs of its offices, the Municipal Corporation has also teamed up with the Indian Solar Energy Corporation. These gadgets can generate up to 10 kilowatts of renewable energy.

In addition, under the UDF fund, 20 sewage treatment plants (STPs) have been set up at 16 locations with a capacity of 50 kiloliters per day. An engineered landfill site at Tehkhand, near Okhla, is being set up along with a waste-to-energy plant on a 15-acre land.

Conclusion 

The scheme lets the taxpayers clear their tax debt by paying a small amount. Also, a new budget for 2023-24 has already been released. Ashwani Kumar approves the schedule of taxes for the same year. According to Gyanesh Bharti, the MCD commission proposed a tax on professions, trade, and employment. However, Ashwani Kumar rejected the proposal with no new tax imposition according to the final budget.