Municipal Corporation of Delhi offers property tax relief to many

NEW DELHI: Municipal Corporation of Delhi has proposed to make some amendments in uniform tax collection policy by giving 10% incentive in the form of carrying development work to the group housing societies and RWAs, in addition to 10% rebate on advance payment of property tax under section 120B of the DMC act, 1957, provided at least 90% taxpayers from the society and RWA make payment.
“Giving incentive in the form of refund is a cumbersome process to implement which is why it is proposed that incentive should be paid in form of development work. Further, removing the maximum incentive limit of Rs 1 lakh (in case of RWA) will help in spending more money if the collection is more for development works,” said an official.
As soon as the society or RWA concerned achieves at least 90% collection efficiency, these will be eligible for the incentive which shall be extended by the way of taking development work in the housing society or RWA. "For this, they need to mandatorily register on MCD portal with details of taxpayers,” stated the proposal.
Further an addition 5% incentive shall be available to the society or RWA if there is 100% segregation at sources, 100% composting of wet waste, 100% recycling of dry waste and 100% handing over of leftover dry waste to MCD’s authorized agencies happening in addition to 90% tax payment.
This incentive will also be handed over by the way of taking up development work at the recommendation of the society or RWA. In case these residents’ bodies fail to recommend the work to be executed against the incentive that MCD may take up these works on its own.
The modified proposal also includes extending 5% incentive to the educational institutions (including engineering, medical, polytechnic, law etc.) in case of 100% waste segregation or recycling or wet waste composting happening in it.
To check tax evasion, MCD claims to have prepared a list of defaulters who have not paid property tax of Rs 25 lakh. According to the municipal act, in case property tax dues cross Rs 25 lakh it may result in rigorous imprisonment from 3 months to 7 years with a fine of not less than 50% of the amount of tax evaded, said the official, adding “We have uploaded details related to property tax on the website. Uploaded data doesn't contain any personal information”.