Property tax relief for Delhiites

From March 1 till March 31, 50 per cent of the interest and 100 per cent of the penalty would be waived.

Property tax relief for Delhiites

In a huge tax relief to Delhiites, Hundreds of crores of rupees in interest and penalties on pending property tax payments will be waived till March 31, three municipal corporations announced on Thursday.

It has been reported that the Standing Committees of the North, South and East Delhi corporations passed resolutions to waive off the interest and penalty on late payment of property tax till February 28, 2017. From March 1 till March 31, 50 per cent of the interest and 100 per cent of the penalty would be waived.

It has been informed that all the properties with pending property tax bills as of Friday, November 18, would be eligible for the amnesty scheme. The scheme will be applicable to all types of properties (government and private), including, residential, commercial offices, etc., some of which owe huge amounts in taxes.

Even though BJP-ruled corporations claim this move is fully to increase revenue and clear the backlog of dues, opposition parties claim that it is a political ploy ahead of the civic polls in the city in April 2017. However, the officers of the corportation claim that the scheme was mulled in December 2015, but the leaders did not pay much attention to it.

Around 20% of the people who have not paid property taxes were waiting for an amnesty scheme like this, Shailendra Singh Monty, chairman of the south corporation's standing committee, told Times of India. "New buyers do not want to pay penalty and interest on the properties which taxes were not paid by their previous owners. They will use the amnesty scheme to make payments," he said.

Subhash Arya, leader of the house told The Hindu that, "For the North Corporation, a total of Rs.330 crore from 21,912 defaulters was pending. The South Delhi Municipal Corporation had a total of about Rs.1,200 crore in pending property tax, including interest and penalties."