PROPOSED HIKE IN PROPERTY TAX RATES

Taking cue from the Delhi Government which has increased the circle rates for properties, the MCD proposes toincrease the property tax rates.  First,  plan for recategorization of colonies closer to Metro lines which willresult in multi-fold increase in property tax; then the increase in circle rates, and as if that was not enough,now a proposal to increase the property tax rates. What is going on!!  Why not, MCD go around with a begging bowl?

Are the Commonwealth Games being organized by picking the pockets of the public, or the government thinks that elections will never come again?

In my opinion, best way to come through the financial crunch in the MCD, is to chalk out a plan to prosecute the propertyowners who are not paying their taxes, and not by again and again fleecing the honest and law-abiding citizens who are paying  taxes regularly.

Ram Gupta
General Secretary
Priyadarshini Vihar RWA
Delhi - 110 092

Circle rates Vs. Property tax in Delhi

Metro or no metro, there are many other factors hurting the sentiments of Delhites, such as water scarcity, water logging, radiation through cell towers, parking facilities, pollution levels,  medical facilities, existing infrastructure etc., which were never considered while revising the circle rates.  It is really surprising that while raising the taxes, these are compared with the European & American countries & while providing infrastructure, these are not compared even with Bangladesh or Srilanka.

Anyhow, Delhi government has increased the circle rates of the property. As a result, it will get enhanced revenues on the sale & purchase of the property. But in normal terms it will not make any impact on the general public. The general public which is not willing to buy or sell any property in Delhi, will not feel any change. They will not get any additional income or facility. Things will remain as they are existing now. 

But it is really SHOCKING to find that just on the base of these enhanced circle rates, MCD is willing to revise the Property tax rates in Delhi. Delhites are already paying the enhanced costs of anything & everything on the name of  CWG. Now to crush them as the last nail in the coffin, MCD is revising the property tax. 

Do you think it is sensible ? 
Do you think that these practices are by the public, for the public, of the public ?

Please reply & add your comments.

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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.


Detailed news can be viewed from the link in headline above.

with thanks : source : Times of India


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MCD Moots Plan To Widen Tax Net

The MCD on Monday gave its nod to the use of domestic breeding checkers (DBCs) as property surveyors that would help the corporation set up a database on the number of properties eligible for taxation. In the long run, this is likely to help the MCD shore up its revenues by bringing more houses in the property tax net.

The Standing Committee of the MCD passed the proposal, according to which DBCs, while making the rounds of homes to check mosquito breeding will carry a form that would have to be filled up by the owners.

Since long, the MCD has been trying to bring more people under the property tax net. Although in the last financial year, the MCD claimed to have collected record amount of property tax, it was attributed largely to the two amnesty schemes the corporation came up with. Only around 10 lakh houses are currently believed to be in the tax net. Officials maintain at least 22 lakh houses were not paying any tax.

Detailed news can be viewed from the link in headline above.

with thanks : source : asianage

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Property tax camp at Anand vihar - Rs. 10 Lakh collected in 3 hours

Dear Mr Vohra,

After a great deal of struggle and tapping all sources right from the bottom to top, finally we succeeded to get a camp organized for collection of ‘property tax’ at Anand Vihar on 8th May, 2010. On this exercise we encountered two perennial problems as in the past – one in getting adequate number of forms and the other in getting the camp fixed. Ultimately, we had tap the top source from whom orders were passed to get the needful done. Should it happen time and again?

You will be surprised and astounding to know that within a matter of 3 hrs. of the camp, we could get 267 applications cleared and collected over Rs.10 lakhs on one day! When people are prepared to pay, the officialdom is loathe and is not at all willing to help? This is paradoxical in the Govt.

We had to look after the officials in every respect at the camp, as a matter of courtesy and graciousness to keep them in good humour and get the job done. Of course, all the applicants were very happy and highly appreciated our efforts but at what cost of energy and time and money?

Can’t we remedy this odd situation? People are prepared to pay the taxes and that too in advance, but the govt. machinery – the babus – is not willing to assist or cooperate. This is the status of the MCD property tax office!

Best regards,

T K Balu, 
Hony. Secretary/RBECHS/Anand Vihar

Property Tax

Dear Friends

We must raise the issue of closure of counters for submitting Property Tax at DC office /Zonal Office Building in Vishwas Nagar behind KKD courts. Only one centre in Geeta Colony is not at all sufficient for whole East Delhi. If not in each MCD ward, there should be a property tax collection centre in each Assembly Consituency.

Regards
L. M. Sharma
Vishwas Nagar RWA

Property tax form for 2010-11

It is a pity that the MCD's Property tax office located in Geeta Colony does not make available requisite number of forms requested for by the RWAs. The residents are willing to pay the tax much in advance of the target date but the MCD is loathe about it. We had requested for a camp at our society's office and make available the necessary number of forms but lo, silence prevails and they don't reply to any letters unless and until you visit their office a large number of times and meet babus and beg for the camp and no. of forms.

We can't understand why when residents are readily willing to pay in advance, the MCD Property tax office sit idle till June and hurry up to make collection. Our simple request is to arrange to hold the camp at the earliest in Anand Vihar Society's office where requisite facilities will be provided and make available the requisite number of forms requested for. Or make it available on the website so that we could download and get them printed for our use. Form available on the website pertains to 2009-10. Last yeat too considerably delay took place in making available the forms and holding the camp.

We trust you could help us which will be of immense assistance to each and every RWA!

TK Balu
Hony. Secretary/RBECHS/Anand Vihar

Property Tax Target Missed, Civic Agency Looks At Course Correction

After failing to meet its property tax target for the fourth time in a row, the Municipal Corporation of Delhi (MCD) is in the process of identifying and correcting the errors that lead to loss of revenue.

While the civic body has admitted it received tax from less than 30 per cent property owners in the Capital, the agency officials claim lack of database is a major shortcoming.

According to sources, the MCD has no available record of the tax payers, except for that of around 3 lakh people who paid their taxes online this year.

Also on the list of problem areas is lack of manpower. Despite the digitalisation of all property tax records and the creation of a database of eligible property tax payers being planned, officials feel they have not been able to make headway as the department is grossly "understaffed".

The MCD is now mulling a series of corrective measures.

The Property Tax department has begun the digitalisation of the manual tax returns filed in 2009-10. This will enable the department to develop a database of at least the 9.73 lakh tax payers who have paid their taxes this year.

FOR DETAILED NEWS, PLZ CLICK THE HEADLINE ABOVE.

With thanks : Source : IndianExpress

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Wanna deposit the House tax, Conversion charges now & that too online ?

If you missed the dead line of MCD and now willing to deposit the Property Tax or Conversion charges, online, from the comforts of your home or office, you will be sorry to note that none of the buttons on the MCD ONLINE PORTAL related to online payment are working.

Please log on to http://www.mcdonline.gov.in/ and than go to Property Tax button. A Scroll window will appear with five options : ONLINE FILING ; MANUAL PTR ; EXECUTIVES ; SUPPORT CELL ; ITZ CASH MONITORING.

If you click, ONLINE FILING : you get the reply :
Services are not available due to Maintainance.

If you click : MANUAL PTR : you get the reply :
Sorry, the page you were looking for cannot be found.

If you click : EXECUTIVES : you get the reply :
Sorry, the page you were looking for cannot be found.

If you click : SUPPORT CELL : you get the reply :
Sorry, the page you were looking for cannot be found.

If you click : ITZ CASH MONITORING : you get the reply :
Sorry, the page you were looking for cannot be found.

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Property tax: civic body falls short of target

New Delhi, April 6 -- The Municipal Corporation of Delhi (MCD) has missed its target of property tax collections for 2009-2010. As opposed to its target of Rs 1,400 crore, it has managed collecting only around Rs 1,100 crore. The civic agency had earned Rs 542 crore in property tax till November 16, 2009-10, which is Rs 85 crore more than the same period last year. But the total target of property tax for 2009-10 is Rs 1,400 crore. Of the total collections made, Rs 675 crore was in the form of property tax and Rs 409 crore in transfer duty share of the civic agency.

The civic body is planning to carry out a survey to determine the exact numbers of properties not paying tax.

with thanks : source : Hindustan Times

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'Only 25 Percent Properties In Delhi Pay Tax'

Only 25 percent of the properties in the national capital are paying property tax, the Municipal Corporation of Delhi (MCD) told the Central Information Commission (CIC), which has termed the revelation 'startling'.

The revelation was made during a hearing of an appeal filed by an RTI applicant, Naved Ahmed, who sought information regarding property tax of a particular property in Okhla village.

Municipalities levy tax on properties within their jurisdiction on the basis of their value. It is a major source of income for the civic agency.

'The respondent (MCD) states that until 2004, the property tax department used to send bills to the owners of property.... After 2004, when self-assessment scheme was implemented, the MCD has not been able to clearly identify which properties have paid property tax,' noted information commissioner Shailesh Gandhi in his order dated March 25.

'The respondent admits that whereas there are about 40 lakh (four million) properties in Delhi, only about nine lakh pay property tax. This is indeed a startling revelation and if the city taxes less than 25 percent of properties it is a very sad comment on the way it is being administered,' he added.

With thanks : Source : SIFY

Complete news can be viewed by Clicking the headline above.

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property tax and collection

Why mcd has to announce amensty every two years . property tax department is either lax or under some invisible orders not to tax subdivision of shops even in commercial mkts like PREET VIHAR and MADHUVAN.

Despite residents pointing out....mcd is lacking in efforts. We want to know suppose a school got land for primary school but running upto 12th and other courses..is it permissible under law and if not then how such institutes are functioning for more than twelve years.

K K Ghei

COLLECTION OF PROPERTY TAX - RWA's CAN ASSIST

Every year MCD announces the Amnesty Scheme and spends crores of rupees on advertisements to encourage people to pay property tax. Reportedly, many people are scared of standing in long queues, and the behaviour of the staff attending to them is also not very pleasant. As a result, they go on postponing the payment and finally miss the deadline.

A suggestion - MCD should make the form consumer friendly, and in case there are no structural changes in theproperty, payment should be accepted with a copy of last year's receipt. RWAs should be roped inwith some incentives to collect the property tax from the residents of their respective colonies on behalf of the MCD.

In my opinion people would gladly pay if they don't have to go to the MCD office and stand in long queues. Why not MCD give it a try.

Ram Gupta
General Secretary
Priyadarshini Vihar RWA

MCD Not interested in collecting Property Tax

MCD confirms encroachment in Madhuban – Universal Public School, Preet Vihar,

Dear Shri Tarun Khanna,
Delhi

Sir,

I am humbly reproducing certain order / information which pertain to the above said school located in Preet Vihar, New Delhi – 110092. You had kindly flashed problems of encroachments in Preet Vihar – Madhuban on front page as well as it continued on another page in your esteemed paper. This has caused tremors in MCD Circles. The residents had welcome and see it as the results of a struggle spend over 6 years. We humbly submit that MCD and Delhi Administration failed to honour and implement the orders of Public Grievance Commission, made contradictory reports to Hon’ble Lt. Governor, in response to the reference on the Hon’ble MLA Shri Nasib Singh. DDA Chief Engineer, Office admitted of encroachment by Universal Public School on public road of Madhuban. This report was sent after site inspection. However, on a second reference and under pressure from various quarters, a contradictory report was sent. We are indebted to you and Central Information Commissioner for bringing out the hidden information regarding this school. It is revealed that though the lay out plans and the building plans were approved in 90s but the school applied for completion certificate in 2007. Due to violations which were not compoundable, the completion certificate was not granted and their completion plans was REJECTED. It is also worthwhile to bring it on record that the original allotment to school was met for primary school. Obviously the land was allotted at dirt cheap price. Thereafter, the school was converted to other activities contravening terms of allotment. MCD and DDA failed to Act. Needs confirmation if property tax was recovered as per actual construction.

On one hand poor citizens of Delhi are sought to cough of more property tax and on the other hand MCD is failing to collect their legitimate dues from such institutes. MCD is also failing to collect the Property Tax from the shops which have been sub-divided. This needs to be seen whether such conversion are permissible under law and if so whether any conversion charges are required to be recovered.

I once again humbly request you to kindly cover the above views at the earliest in your esteemed newspaper.

With regards,
Thanking you,
Yours faithfully,

KK GHEI
A-78, Madhuban,
Delhi-110092
Phone: 9811868133
Email: kkghei@ffisindia.com
6th March, 2010

Property Tax Hike Not Steep, House Owners Get In Delhi Some Relief

Residents of posh colonies in Delhi will have to shell out more money for property tax as compared to those of other localities. The Municipal Corporation of Delhi (MCD) finalised a budget of over Rs 6,000 crore for the year 2010-2011 on Monday under which property tax payable by people living in A and B colonies has been increased from 10% to 12%.

For the detailed news, please click the headline above, with thanks Times of India.

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15 days to pay tax : MCD

New Delhi : Illegal constructions are once again under the hammer of MCD. The civic body has issued public notices asking asking people running commercial & professional establishments from residential colonies to pay annual mixed use charges, one - time parking charges and additional Floor Area Ratio FAR charges ( in case of basements) and conversion charges within 15 days. The officials said if someone fails to deposit the required charges in the stipulated time, heavy penalty amounting to 10 times the normal fee will be charged.

with thanks : source : Hindustan Times

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MCD tax : Netas feel differently

Fri, Dec 11 11:30 AM

New Delhi, Dec. 10 -- A day after MCD commissioner KS Mehra announced a 5 per cent increase in property tax, the political brass of the civic body said it was not in favour of adding to the burden of taxpayers, especially those from the middle-class and lower middle-class.

Instead, it was planning to get defaulters in the tax net. "We want more people to be brought into tax net and are working towards it.

The additional taxes are just at the proposal stage," said Mayor Kanwar Sain. He said he wasn't in in favour of burdening those who are paying taxes.

"The idea is to increase our revenue by increasing taxes charged from malls, 3-star hotels etc. Their turnover is huge but they are paying pittance as taxes presently," he said.

MCD commissioner KS Mehra had on Wednesday had proposed a 5 per cent increase in the house tax rate being levied. The increase is much more for commercial properties.

For rented commercial property, tax has increased from 10 per cent to 20 per cent, which is almost a 100 per cent increase in the annual amount being paid as property tax, according to traders. The increase for self-occupied commercial properties is 5 per cent from 10 per cent to 15 per cent.

MCD has also proposed to bring some commercial enterprises under a special category and charge 20 per cent from them. "We do not want to burden people belonging to the middle-class and lower middle-class.

We will make changes in the proposed budget in the coming days," said Subhash Arya, leader of the MCD House.

with thanks source : Hindustan Times
Taken with thanks from : http://in.news.yahoo.com/32/20091211/1053/tnl-mcd-tax-netas-feel-differently.html

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Will house tax hike plug hole in MCD's coffers?

NEW DELHI: MCD might have proposed an increase in property tax for both residential and commercial properties, and new taxes - to better its services - but at the other end, crores of rupees are still spilling out of its coffers due to a lack of proper checks and balances.

Salaries paid to ghost employees is not the only problem. MCD is also losing money because of dishonoured cheques received as payment for property tax. The civic agency's budget says it loses crores in this manner, but there is no accounting of the exact amount. MCD has now decided to set up a committee at the central level to monitor the matter and initiate action against defaulters.

Said MCD commissioner K S Mehra: "Most dishonoured cheques we get are meant to be payment for property tax. The matter is not always pursued. But action will now be taken against defaulters."

Neither has MCD's attempt at bringing more people into the tax net been very sucessful. It had come up with an amnesty scheme earlier this year under which people who had not paid tax, would not be levied a penalty or interest on the pending amount. The last date for the scheme was October 31. But only 46,070 people came forward, from who MCD got Rs 100 crore.

Said Leader of the House Subhash Arya: "We were expecting to get Rs 1,000 crore. We have now extended the payment deadline to December 31. The Survey of India is carrying out a survey of properties in Delhi, details of which will be made available to MCD so that we can take action against property tax defaulters. Right now only nine lakh people pay property taxes, while there are 30 lakh properties in Delhi."

According to sources, the major defaulters are residents living in unauthorised regularised colonies. Meanwhile, government bodies like the Metro and Delhi Development Authority also owe MCD over Rs 500 crore. Said an MCD official: "The matter concerning Metro is ongoing in court, while the DDA issue has been taken up with the L-G."

But the money drain continues. MCD loses crores of rupees over parking. For instance there are over 250 illegal car parks in MCD areas. Said an MCD official: "We tried legalising some of these parking lots but did not get permission from the traffic police."

with thanks Source : http://timesofindia.indiatimes.com/city/delhi/Will-house-tax-hike-plug-hole-in-MCDs-coffers/articleshow/5324981.cms

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Surprise factor in the property taxes between NDMC & MCD areas

It's really a surprise that on one hand, as a relief to the tax payers of NDMC areas, the residents are being allowed to pay the property taxes on the older basis, whereas, residents of MCD areas are being targeted with slew of new taxes & rate hikes soon.

Do you think it is fair ?

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'Why not nail the defaulters first?’

Residents have thumbed down the proposed increase in property tax, in the Municipal Corporation of Delhi’s budget for next year. Although the civic agency claims that the number of property taxpayers is increasing, it has still not been able to deal with those evading tax.

Approximately nine lakh people pay property tax to the civic agency currently, but according to the municipal corporation, there are more than 30 lakh properties in the city. Clearly, it is missing more than two-thirds of its taxes.

“We are the honest tax payers who have been paying our taxes every year without fail, why should we take the burden of the defaulters? The MCD should come up with a strategy to make the defaulters pay. Increasing property tax is not the solution. They are forcing us to leave Delhi,” said Rajiv Kakaria, member of Greater Kailash-I resident welfare association.

The civic agency had recently launched a scheme asking all the defaulters to pay their dues, but to no avail.

“The civic agency is unable to provide basic facilities, and rather than improving them, it is burdening the innocent population. Price hike is hurting our pockets already. We were expecting the BJP-led MCD to be more sensitive towards our needs, but it seems to have disappointed us equally,” said VK Arora, a resident of Anand Vihar.

To determine the exact number of property owners in the city, Survey of India is carrying out a survey, a report of which will be soon made available to the MCD.

The report is expected to give an exact idea of the number of property owners, taxpayers and tax evaders in the city.

Please read the detailed news by clicking the headline above.

Source with thanks : Hindustantimes.com

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