SDMC to reopen tax cases of 40,000 property owners

Corporation hopes to collect Rs 600 crore

The South Delhi Municipal Corporation will reopen the cases of around 40,000 property owners, who have not paid property tax for years, as the assessment of their taxes was done ex-parte under the Rateable Value method before 2004. 

A majority of these owners counter the amount of tax computed by the property tax department ex-parte.

The civic body has been losing revenue as all the property owners are not paying tax even after the introduction of self-assessment method in 2004.  The corporation expects to raise Rs 600 crore as tax from the 40,000 properties.

“By opening the cases, the corporation is giving an opportunity to the property owners to pay the property tax by settling the assessment amount,” said Rajesh Gehlot, chairman of standing committee.

Gehlot said since the assessment was done ex-parte there are cases where the amount of property tax was very high.

“In some cases it was more than the value of the property itself. The new initiative will help in realising the due amount which runs into several hundred crores,” the chairman added.

However, he said the settlement will come up with some caveats. The officials said penalty will also be levied against owners whose assessed amount will be found to be correct.

“The initiative basically has three conditions. Firstly, in case the claim of assessee is found to be correct then they will be penalised. However, simple interest at the rate of 1 per cent per month shall be charged in such cases for the delayed payment.

Secondly, in cases where the claim of assessee is found incorrect, penalty levied shall stand,” said B N Singh, Assessor and Collector, South Corporation.

“In closed cases of assessment – meaning thereby that the e-parte assessment orders are already accepted by the concerned property owners – will not be entertained or opened under any circumstances,” he added.

The civic body officials said notices will soon be sent to all the property owners.

“Penal action will be initiated against the property owners who fail to clear their dues even after the latest initiative,” an officer said.

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