Living in South Delhi might get more expensive: SDMC proposes hike in property tax, netas oppose
The South Delhi Municipal Corporation presented budget proposals for financial year 2017-18 whereby he proposed a steep hike of 30-60 per cent in property tax.
In Short
- SDMC proposed a steep hike of 30-60 per cent in property tax.
- The taxes will be raised based on different categories.
- Netas oppose the hike keeping in mind MCD elections in early 2017.
Even as the babus in South Delhi Municipal Corporation (SDMC) have proposed a steep hike of 30-60 per cent in property tax, the political wing is feeling the heat keeping in view the upcoming MCD election of early 2017.
Commissioner of SDMC, Puneet Kumar Goyal, presented budget proposals for financial year 2017-18 on Monday, whereby he suggested that the Basic Unit Area Value (BUAV) here be raised by 30 per cent.
Moreover, the rate of property tax should also be upped by one per cent in residential properties falling under categories C, D and E, and by two per cent in those under categories A and B, he said.
ALSO READ | SDMC budget proposes only e-payment of tax from FY 2017-18
THE DIFFERENT CATEGORIES
Under SDMC's classification, Category A includes the highest-value localities like New Friends Colony. These have a Basic Unit Area Value (BUAV) of Rs 630.
Category B also covers posh areas like Defence Colony with a BUAV of Rs 500. Category C has pockets like Kalkaji, BUAV of Rs 400. Category D encompasses Sant Nagar, Janakpuri, Vikaspuri, etc. (BUAV Rs 320). Category E includes areas like Tilak Nagar (BUAV Rs 270). Categories F and G cover areas like Uttam Nagar and Govindpuri (BUAV Rs 230 and Rs 200). Lastly, Category H includes villages and rural belts like Tughlakabad Ext. (BUAV Rs 100).
Correspondingly, Category A and B have a Rate of Property Tax at 12 per cent which is proposed to be raised to 14 per cent.
Categories C, D and E have a Rate of Property Tax of 11 per cent which is proposed to be raised to 12 per cent. For categories F, G and H-which house the lower middle class-the tax rate is proposed to be kept constant at 7 per cent.
As per financial officers' computation, this would come to a steep hike of 30 to 50 per cent in property taxes across south Delhi.
For commercial properties, the hike would go up to 60 per cent with SDMC proposing a different five per cent raise in property tax for them.
Also Read:
Relief for Delhi's property tax payers; MCD waives off penalty and interest
Son has no legal right in parents' house, can reside at their mercy: Delhi HC