South Corporation collects record property tax in first quarter

With bringing over 78,000 more properties under its tax net in the first quarter of 2015-16 fiscal, the South Corporation expects to meet its target of collecting Rs 650 crore through property tax by the year-end.

The civic agency has collected a record Rs 368.56 crore so far and if collection continues in the same pace, the corporation hopes to surpass its target limit for the first time since its inception in 2012.

Chairman of the Standing Committee of South Delhi Municipal Corporation Radhey Shyam Sharma said the civic agency had collected Rs 276.42 crore as property tax in the first quarter of 2014-15. “There is a rise of Rs 92.14 crore this year as the number of properties has also increased to 78,267,” he said.

There were over 2.3 lakh taxpayers in the 2014-15 financial year whereas the number of taxpayers has also increased to over 3.1 lakh this fiscal. Sharma said that the corporation’s target to collect property tax for 2014-15 was Rs 600 crore, of which the civic agency was able to achieve Rs 545 crore.

This financial the civic agency’s target is Rs 650 crore and the corporation has already collected over Rs 368 crore in the first quarter. “If we continue to collect property tax in this way then we will be able to collect Rs 700 crore by the year-end,” said Sharma.

In 2013-14, over 3.83 lakh property owners paid tax whereas in 2014-15 over 3,84 people paid property taxes. But from April to June, 2015, over 3,13 lakh property owners have already paid taxes. “So far we have issued two lakh advisories to property owners in the areas under our limits. Of which 1.5 lakh buildings are registered as commercial properties and 40,000 are government offices or farm houses,” said Sharma.

“Most of the people who received the advisory have paid property tax. Some people living in unauthorised colonies have also paid house tax,” he added.

The municipal commissioner with South Corporation has proposed to bring down tax exemption of residents of villages from 200 sqm to 100 sqm. “But we rejected this proposal,” said Sharma.