NDMC draft proposes unit-area property tax method and 30% rebate

The New Delhi Municipal Council has proposed a different way of working out property tax in its area. The draft would use a unit-area method, replacing the rateable-value approach that NDMC uses at present. It remains a proposal while the council considers public feedback.

What would feed into the tax calculation

Under the draft described by The Times of India, the calculation would take account of the property’s use, age, construction type, whether it is owner-occupied or let out, its circle-rate band and local infrastructure. Road width would also be relevant. These factors mean two properties of similar size may not necessarily receive the same assessment.

The proposal also says that a standard rate would apply where at least one quarter of a plot has been built on. A separate vacant-land levy could apply where construction covers less than that share. The eventual rate for that levy is not set out in the report.

Proposed payment options and concession

The draft allows payment in one amount or through four equal quarterly payments. It proposes a discount of up to 15% for full payment by June 30 of the relevant financial year, while late payment would attract monthly simple interest. It also proposes a 30% concession for one qualifying self-occupied residential building of up to 100 square metres owned by a woman, a person with disabilities, or a man aged 65 or older.

For owners, the immediate point is that these are draft features. The outcome could change before adoption. People affected by the proposal can follow NDMC notices for the final method, rates and effective date.