While reducing the rebate for individual timely tax payment from 15% to 10% across all categories, the MCD has incentivised resident welfare associations (RWAs) as a whole, and tried to push waste segregation as well, with its latest tax and benefits policy. Read all about the new tax regime, which has kicked in since July 16.
Envisaging a cleaner and greener Delhi with a distinct pro-education thrust, the Municipal Corporation of Delhi (MCD) has made several changes in the property tax regime.
V.K. Saxena, the Lieutenant Governor of Delhi, has approved that from July 16 if one owns a residential property in Delhi and is paying their property taxes in time, then they as well as their society can avail rebates and benefits of having area-specific municipal work done from the tax money the individual has paid.
Also, to fund the municipal-run schools for better education and infrastructure, an additional education cess of 1 percent has been added.
The residential property tax rates range between 7-12 percent of the circle rate. In addition to this, here are some changes:
For independent house owners
If the individual is paying property tax in time, then they can enjoy a rebate of 10 percent, which was earlier 15 percent.
However, if the entire resident welfare association (RWA) is 90 percent tax compliant, then an additional incentive of 10 percent of the total tax paid by the RWA or a maximum of up to Rs 1 lakh per year, can be used for special welfare by the MCD for the RWA area.
This incentive can be demanded by the RWA, telling the MCD to spend this incentive money, for area specific welfare work — such as additional cleaning drives, creating special infrastructure etc.
Also, an additional rebate of 5 percent can be claimed by such property owners if, they and all the houses in their RWA are segregating waste at the household-level — that is each house disposing dry and recyclable waste separately from wet and other waste, looking ahead to an environment-friendly city.
Apart from this, the other rebate of 30 percent for female owners and senior citizens continues.
For owners in group housing/society
If an individual owns a residential property in a group housing/or a society, then individually, an owner can get 10 percent rebate for timely tax payment. However this rebate was 15 percent till July 15, 2022.
But, this has now been realigned and an additional 10 percent rebate benefit will be given to such owners if 90 percent of their group housing/society owners are paying their property taxes in time.
Here too, the MCD has decided to offer an additional rebate of 5 percent, which can be claimed by such property owners if, they and all the houses in their RWA are segregating waste at household level.
For commercial property owners
Here, the property tax rates ranges between 15-20 percent across categories, and from July 16, an additional education cess of 1 percent has been added to help the corporation build better education infrastructure.
The rebate for being timely tax payment has been reduced from 15 percent to 10 percent.
And the use factor, which varied across the three erstwhile municipal corporations between 4-6 percent, depending upon the category and nature of work being conducted from the said property, has now been made uniform across MCD jurisdictions. It will now only depend on the nature of commercial activity, but the range continues to be 4-6 percent.