MCD Property Tax /Vacant Land Tax


Background and Issues

1.         General Public is not aware of the procedures adopted by the Tax Department for payment of property tax. The most affected people are :

(a)    Owners of DDA flats allotted by DDA ;
(b)   Owners of CGHS flat allotted by DDA through the office of RCS ;

2.         MCD’s website for payment of property tax is a wonderful tool which is user friendly. The portal allows only payment of taxes for the current year

3.         If anyone want to pay the arrears, the citizen is asked to study and understand a complicated form. Not every person is an expert to know the measurements or calculate the unit area method.

4.         The complicated system of collection of property tax is driving away citizens and too much of manpower is getting wasted behind collection of property tax.

5.         There is no FAQ available (either printed or through the website) where citizens can find commonly asked queries. For example, in CGHS, the tax department demand property tax from the owners from the date on which the concerned CGHS applied to DDA for their completion certificate. Whereas in most cases, there is a huge gap between the application for CC and actual allotment by DDA. The owner believe that he is liable to make property tax only from the date on which is the society’s draw is conducted or in certain cases, the date on which the physical possession of the flat is handed over.

6.         MCD Act of 1957 states :

            Section 129 - Notice of erection of building etc.
When any new building is erected or when any building is rebuilt or enlarged or when any building which has been vacant is reoccupied, the person primarily liable for the property taxes assessed on the building shall give notice thereof in writing to the Commissioner within fifteen days from the date of its completion or occupation whichever first occurs, or as the case may be, from the date of its enlargement or re-occupation; and property taxes shall be assessable on the building from the said date.
7.       From the above, it is fairly clear that the property tax payment will become due on the date on which the completion certificate is received (Or occupation, whichever first occurs). But MCD is insisting on payment of property tax from the date on which the concerned society apply for completion certificate. Surely there is a complete disconnect somewhere.

8.       Does MCD office for Dwarka has any method of tracking the properties which needs to assessed under its jurisdiction ? There is a popular belief that MCD allows people to default and extract their pound of flesh at the appropriate time at a later stage where the citizen is harassed for no reason. There are certain examples where the status of vacant land changed in the year 2005 and a building become assessable for property tax but the residents were told only in 2011 that your property tax payments are due from 2005 !!!
Submissions :

1.       We request the Property Tax Department to be more proactive and guide the residents in complying with the tax laws.  For this a foremost requirement is a comprehensive FAQ.
2.       We request the Property Tax Department to depute/ assign officers to set up camps sector wise, preferably on Sundays, during the tax collection period to help / assist residents to fill their respective forms, deposit the requisite tax payment and issuance of a receipt. Such an exercise will be of great help to residents ( more for senior citizens and women and other working class people).
3.       A yearly camp where MCD officers can invite office bearers of RWA/ CGHS to educate them of calculations and also update them about any changes in the law or procedures who can then take this knowledge back to their colonies.

Note submitted to MCD Property Tax Department
February 2011