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New tax regime: NDMC follows the MCD way

By Sandeep Joshi

NEW DELHI FEB. 7. Following in the footsteps of the Municipal Corporation of Delhi (MCD), the New Delhi Municipal Council (NDMC) has also decided to go ahead with implementation of the new Unit Area Method for assessment of property tax provided the former meets the April 1 deadline.

``We will also take a decision to this effect provided the MCD adopts the new scheme on April 1,'' informed the NDMC Chairperson, P.M. Singh, adding that the new method was not going to have much repercussions on the Council which only had around 1,500 residential properties and a few commercial properties compared to the MCD. Notably, the Delhi Government's Department of Urban Development in its letter in December and January had conveyed the wishes of the Delhi's Lieutenant-Governor, Vijai Kapoor, to have a uniform property tax system in the entire National Capital Territory of Delhi.

Stating that the ground work for determination of tax was being worked out, sources in the NDMC said, the Council had been studying the draft report of the Dharmarajan Committee which had been submitted to the Delhi Chief Minister, Sheila Dikshit. Notably, the high-power expert committee is learnt to have decided to suggest unit rates ranging between Rs. 3 and Rs. 5 per sq foot.

However, if the new scheme is not implemented, the NDMC will continue with its existing mechanism of property tax. It has also decided to introduce a new slab of property tax which is likely to benefit residents living in its area. The Council recently decided that a new slab of 25 per cent between existing slab of 20 per cent and 30 per cent which will be with rateable value between Rs. 5 lakhs and Rs.10 lakhs. The existing slab of 30 per cent will be levied on properties with rateable value above Rs.10 lakhs.

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