MCD launched a new amnesty scheme to settle property tax issues
The Municipal Corporation of Delhi has launched a new amnesty scheme to settle property tax issues under the old method of property tax assessment called Rateable Value (RV) method.The old system continued up to March 31, 2004, after which the Unit Area Method was introduced from April 1, 2004. According to MCD, there are more than one lakh cases pending under the earlier system of property tax assessment and the outstanding dues run into crores.
This scheme was launched by standing committee chairman Yogender Chandolia to improve the property tax collections. The scheme would be limited only for settlement of ex-parte assessments under RV method and would provide waiver of interest and penalty amount to taxpayers, subject to up-to-date payment of property tax.
Applications for settlement under the scheme would be received along with admitted tax on self-computed basis after the publication of public notice and up to January 31, 2011. The applicant will have to pay the balance, if due, on settlement within 15 days of such settlement. Any assessee whose earlier rectification application is pending or rejected by the department would have to file a fresh application to avail benefit of the scheme. After the closing of this scheme, there shall be no settlement of ex-parte assessment except rectification of arithmetical and clerical errors.
Source: The Hindu
Delhi NCR, Delhi Property tax, improve the property tax collections, Municipal Corporation of Delhi, New Delhi, New scheme to settle property tax issues, property tax due, Rateable Value Method, rectification application, settlement of ex-parte assessment
I own a flat in Rohini. I got posession of my flat in July 2002. The first time I paid the property tax was in 2005. While paying the property tax in 2005, I paid all the arears as well starting from July 2002. I calculated the tax based on Unit Area Value basis , as in 2005 this method was existing. but Since them I have paying al the property tax regularly till today. Recently I have received a hudemand letter from MCD demanding a huge amount. As per them I should have paid property tax starting from 2001 instead of 2002 even though I was given posession in 2002. Also as per them I need to give tax based on rateable value instead of Unit area value until 31.3.2004.
Still I do not understand how there could be such a large difference in the property tax weather calculated by old method or new method, also if posession had been given in 2002, then why tax is calculated starting from 2001.
[...] Chandolia also appealed the tax payers to avail the amnesty schemes which provide wavier of interest and penalty, subject to up-to-date payment of property tax. These [...]