South Delhi may have to pay more property tax next FY

New Delhi: Property falling under South Delhi Municipal Corporation (SDMC) have to pay more tax from next financial year. Presenting the Budget proposal for next financial year in the SDMC’s standing committee, the commissioner, Dr Puneet Kumar Goel, on Tuesday proposed an increase of maximum two per cent in residential property of colonies falling under category A and B. Dr Goel also proposed one per cent education cess on property tax.

The SDMC proposed to increase property tax rates on residential properties according to the category of colonies.

The proposed rates for residential properties falling under the category A to B will be 4 per cent  and  under the category C,D and E 12 per cent instead of 11 per cent and 8 per cent instead of 7 per cent in F, G and H category colonies.

It is purposed to charge property tax at the rate of 20 per cent of annual property value for special commercial /non-residential properties and other 15 per cent on  non-residential/ commercial properties.

Goel said this while presenting the SDMC’s revised budget estimates for 2018-19 and Budget estimates for the year 2019-20 at the Civic Centre. “We plan to increase the earnings of the corporation through various avenues, and one of them is hiking of property tax, which we have proposed in the budget.

“There is also a provision to levy a professional tax for the year 2019-20, from which an income of Rs 30 crore is expected for that year,” Dr Goel said.

Later, interacting with reporters, Goel said about 6.44-lakh properties were surveyed through a door-to-door survey from September 2017-May 2018.

Other proposals include redevelopment of the Meherchand Market, an upscale commercial zone in Lodhi Colony, and pedestrianisation of streets in market areas which lack facilities for parking.

The focus in the Budget this year is on education and public health.