Urban News

Hindustan Times 09.02.2010

Pay more tax for owning property in posh colonies

Residents of posh colonies in the city will have to shell out more money as property tax compared to residents of other localities.

The entire area under the Municipal Corporation of Delhi (MCD) has been divided into eight categories, A to H, wherein category A stands for upscale colonies.

The MCD, in its meeting of the House held on Monday, gave the final nod to the tax jump that include two per cent rise for residential properties falling under category A and B such as New Friends Colony, Vasant Vihar, Anand Lok.

The other categories from C to H will see a rise of one per cent from the previous rate. (see box).

For commercial properties such as multiplexes, big shops, and farmhouses in the city, there has been an increase of 5 per cent from the previous 10 per cent.

"The MCD has divided residential properties from categories for collection of property tax. The MCD commissioner in his budget speech had proposed a flat increase of five per cent across all categories of residential properties. But the MCD House has reduced the burden on taxpayers by approving an increase of mere two per cent for category A and B and one per cent for the remaining categories," said Subhash Arya, leader of the MCD House.

He said a committee has been constituted to further study the possibility of taxing the telecom and electric companies being operated from MCD land.

A first-time tax on production of electricity for commercial purposes and on heavy-duty power generators was also approved by the civic body.

Hindustan Times 08.02.2010

MCD nod to higher property tax rates

Residents living in MCD areas will have to pay more property tax now as the civic agency on Monday gave a nod to the proposed higher rates while passing an over Rs 6,000 budget for 2010-11.

Finalising the budget estimates at a meeting of the corporation, Leader of MCD House Subhash Arya announced that the hike in property tax rates is being given a nod, albeit with some revisions.

While the MCD Commissioner proposed across the board five per cent hike, the Chairman of MCD Standing Committee R K Singhal during the presentation of the estimates said the hike will be two to three per cent, which has been further reduced by Arya in some categories.

According to the final proposal, the tax rates for residential properties have been increased from 10 per cent to 12 per cent in categories A and B and from 10 per cent to 11 per cent in categories C, D and E. The hike will be from six per cent to seven per cent in categories F,G and H.

For non-residential properties, the hike will be from 10 per cent to 15 per cent in categories A and B, from 10 per cent to 12 per cent in C,D and E while for F, G and H the rates have been kept untouched (10 per cent).

The corporation rejected a proposal for imposition of professional tax.