MCD wants tenants to share house tax burden in special areas

Municipal Corporation of Delhi is now toying with new methods to collect more property tax from `special areas` like Chandni Chowk, Karol Bagh and Paharganj.

Last Updated: Jan 24, 2011, 22:04 PM IST

New Delhi: Keen on increasing its revenue,
cash-strapped Municipal Corporation of Delhi is now toying
with new methods to collect more property tax from `special
areas` like Chandni Chowk, Karol Bagh and Paharganj.

Leader of MCD Standing Committee Yogender Chandolia said
the civic body wants the tenants occupying properties in such
areas to share some burden of house tax.

"In designated special areas in City, Sadar Paharganj and
Karol Bagh zones, there are many old properties where the rent
had been quite low for years. Earlier, under the rateable
value method, the owners had to pay little tax but it has
increased manifold since the introduction of unit area method
in 2004," he said.

Chandolia argued that owners of properties in special
areas have not been paying their taxes as they claim that they
are earning very little from their properties. Many of them
are fighting legal battles due disputes over the properties.

"We have now decided to ask owners who properties are
being occupied by tenants to pay property tax on the basis of
old RV method while the extra tax calculated after 2004 as per
the new unit area method will have to be borne by the
tenants," said Chandolia.

In the old rateable value (RV) system, the capital value
of the property was used to be taken into account while in the
unit area method, value is assigned to colonies rather than
individual properties.

Asked whether the MCD can collect house tax from tenants,
the BJP leader said, "There is provision for it in DMC Act but
it was not being implemented. Now we are planning to implement
this provision."

The MCD will focus on increasing tax collection in such
areas, he said.

PTI