MCD clarifies no property tax exemptions granted

| | New Delhi
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MCD clarifies no property tax exemptions granted

Saturday, 01 March 2025 | Staff Reporter | New Delhi

The Municipal Corporation of Delhi (MCD) on Friday clarified that no exemption has been granted for paying property tax.

The civic body said it wishes to clarify recent misinformation circulating across various media platforms regarding the exemption of property tax.

All property owners and occupiers are required to pay property tax as per existing laws, and no exemption has been granted, contrary to certain media reports and social media discussions based on house proceedings.

MCD has received multiple inquiries from the public regarding whether they are still obligated to pay property tax. MCD reaffirms that property tax remains payable by all occupiers or owners, and no changes have been made to its applicability.

Property tax is a major source of revenue for MCD, contributing one-fourth of its total earnings. As part of its annual budgetary process, MCD determines the levy of taxes and duties each year.

The tax structure for fiscal year 2024-25 was finalised in February 2024 when the budget was passed.

Similarly, in its meeting on February 13, 2025, MCD decided on taxes and duties for fiscal year 2025-26.

MCD is facing financial challenges, with over Rs 14,000 Crore in outstanding dues, including pending payments for municipal employees' salaries, retirement benefits, and contractor dues.

Without financial stability and accountability, MCD will struggle to maintain essential civic services, such as: sanitation and cleanliness, maintenance of streets, roads, and drainage systems.

Given these financial constraints, there is neither a legal nor financial basis to waive property tax payments.

MCD urges all property owners or occupiers to file their property tax returns on self-assessment basis on or before March 31  2025 and ensure payment of their property tax for the current Financial Year without further delay to avoid penal action.

 

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