East MCD waives off interest, penalty of property tax defaulters
In a relief to lakhs of residential property owners in unauthorised colonies, East Delhi Municipal Corporation has decided to write off interest and penalty on full payment of property tax up to the current financial year.
The amnesty scheme, open for ‘unauthorised’ and ‘unauthorised regularised’ colonies, has given a time limit till December 31 for payment of property taxes. The scheme was passed by the House meeting of EDMC on Monday, said Lata Gupta, chairperson of Standing Committee of the Municipal Corporation. As per the scheme, interest rate and penalty on property tax amount accumulated from April 1, 2004, to March 31, 2015 will be waived off subject to full and final payment of the tax amount determined through unit area method, she said.
The unit area method of property tax assessment was introduced from April 1, 2004.
Also, property tax dues up to March 31, 2004, prior to introduction of unit area method, will be waived off on full payment of property tax up to the current financial year, she added.
The scheme has been launched to widen property tax base of EDMC as majority of residential properties in ‘unauthorised’ and ‘unauthorised regularised’ colonies are still out of the tax net, said a senior EDMC official.
A major hurdle in recovery of property tax in these colonies was accumulation of interest and penalty amounts up to 140 per cent of the base tax amount, since April 1, 2004, posing a challenge of full payment before the property owners, he said.
Out of a total of around 12 lakh residential property owners in ‘unauthorised’ and ‘unauthorised regularised’ colonies under EDMC area, nearly 8 lakh owners will benefit from the scheme, the official added.