The unit area system for assessment of property tax has done wonders for the New Delhi Municipal Council (NDMC) on tax collection. The property tax collection in the NDMC areas has reached an all-time high at Rs435 crore for 2012-13.
Compared to the previous year's Rs325 crore, the amount collected this year has increased by Rs110 crore which is 33% rise.
“The main reason for the increase in tax collection is that most of the commercial properties — including five-star hotels — have agreed to the unit area system for assessment,” said a senior officer of NDMC. The tax collected in 2009-10 was Rs295 crore whereas in 2010-11 it was Rs300 crore, which clearly shows the steep rise in the revenue generation.
As of now, 12,000 properties are registered under the NDMC. “Cohesive measures, wherein 20 properties were attached for recovering, favoured in limiting the number of defaulters thereby increasing the overall collection,” said Kumar Hrishikesh, Director of Tax, NDMC.
Officials further said the properties evading tax were being identified and their accounts were being attached for recovery of the tax amount.
The unit area method comprises two categories, namely bylaw 3 and bylaw 4. In bylaw 3, tax is levied on such properties which cannot be rented out. The amount to be paid is based on the cost of land and construction. Bylaw 4 asks people to pay Rs1,000 per square metre based on those lands, which can be given on rent.