Trouble is brewing for thousands of owners of farmhouses and residential units in South and West Delhi for property tax fraud. The South Delhi Municipal Corporation (SDMC) has issued notices to the rented residential property owners who are paying tax as per the slab applicable for self-occupied properties.
Officials said that such properties are liable to pay higher tax. More than 20,000 such properties have been identified so far within the limits of SDMC. Hefty monetary penalty will be imposed on the defaulters, officials said.
Senior SDMC officials said the owners of these properties have to deposit the tax dues before June 30, failing which not only the 15 per cent rebate will be withdrawn, but also a penalty of 30 per cent of the total due along with interest will be imposed on the defaulters.
However, if the property owners fail to pay the penalty even after that, further coercive steps will be taken, including attachment of property for recovery of the tax amount. Officials said the tax amount on the properties that have been sublet for rent is double the tax amount applicable on self-occupied residential units.
“We have started sending notices to the property owners for recovery of the tax amount. Action will be taken against them if they fail to clear the due tax by June end,” said BN Singh, Assessor and Collector of SDMC.
He said last year, nearly 5,000 such properties were identified and penalised for evading property tax. Officials added the property owners, in order to evade paying higher tax, do not disclose the same in self-assessment property tax returns which causes monetary loss to the Corporation.
Officials said the prime focus will be on farmhouses in areas like Mehrauli, Fatehpur Beri and Kapashera. "Scores of these farmhouses have been rented out, but evading the actual amount of property tax is causing monetary loss to the civic body. We have identified such properties in Mehrauli and soon the survey will be completed in other parts of the city," officials said.
Zone-wise data of such properties is being compiled and notices are being sent to the owners simultaneously. Officials are also using the data of the registrar's office to ascertain the exact number of rented properties. It is noteworthy that property tax is levied at different rates depending upon coverage area, age, structure, occupancy and use of the property. In case the property is rented out, the tax slab changes as compared to the tax applicable in self-occupied properties.