MCD May Also Revise Property Tax Upwards

The Delhi government's decision to increase circle rates of land and immovable properties in all circles may prompt the MCD to revise its property tax rates upwards.

Experts feel that as the circle rates have been increased by up to 200% in some areas, property tax will be revised by around 100% in these areas. In places where circle rates increase is not steep, the revision in the property tax could be lower.

In Delhi, property tax is fixed on the unit area basis. As the property prices are high in posh areas which are kept in the higher categories the circle rates are fixed at a higher rate. Similarly, the property tax rates in those areas are also pegged at higher levels.

Now, as the government has revised the circle rates upwards, MCD will use it to revise the property tax. Before the introduction of unit area method for calculation of property tax, the tax used to be levied on the basis of the value of the property. But, it led to lot of litigations. To remove the ambiguity and to introduce uniformity, the government introduced the unit area method. Under this, the property tax is calculated on the basis of prescribed unit area rate by the MCD.

In fact, Delhi government has already appointed a committee to revise the rates. The municipal valuation committee is likely to give the report by the end of this month. Experts feel that the revised circle rates will help the committee to prepare a report suggesting a rate hike. Any upward revision of the circle rates, will lead to huge jump in the MCD's revenue.


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with thanks : source : Times of India


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