One-Time Property Tax Amnesty Scheme Launched In Delhi

Delhi Lieutenant Governor Vinai Kumar Saxena on Tuesday launched a one-time property tax amnesty scheme "SAMRIDDHI 2022-23", saying it will provide a major relief to lakhs of residential and commercial property owners in the city.

SAMRIDDHI, an acronym for Strengthening and Augmentation of Municipal Revenue for Infrastructure Development in Delhi, will start on October 26 and end on March 31, 2023, with no further extensions.

Under the scheme, residential property owners can pay just the principal property tax amount of the current and of the past five years. For commercial properties, owners can pay the principal amount case of the last six years and get a waiver on past pending dues, including penalty and interest, according to an official statement.

The Lt Governor said SAMRIDDHI 2022-23 is a people-friendly initiative of the Municipal Corporation of Delhi which will provide a big relief to the residents and encourage property owners to get rid of long-pending disputes and related harassment.

He added that waiver of tax liability means more money in the hands of taxpayers and more revenue for MCD, thereby enabling the civic body to undertake much-desired civic infrastructure work for better service delivery to the people of Delhi.

Mr Saxena added that this new amnesty scheme will also widen the tax base and enable MCD to build a proper tax database by being more pragmatic about the enforcement of its long-pending tax dues.

According to the statement, the tax amnesty programme envisages a 'One Plus Five' option for residential and a 'One Plus Six' option for non-residential properties.

"The taxpayers of residential properties under 'One Plus Five' are required to pay the principal amount of property tax for the current year and previous five years (i.e FY 2022-23 FYs 2017-18 to 2021-22) whereupon 100 per cent interest and penalty on the outstanding tax amount shall be exempted and all the previous dues before 2017-18 will be waived off," the statement said.

"​Similarly, under the 'One Plus Six' for non-residential properties scheme, property owners have to make payment of the principal amount of property tax for the current year and previous six years (i.e FY 2022-23 FYs 2016-17 to 2021-22) whereupon 100 per cent interest and penalty on the outstanding tax amount shall be exempted and all the previous dues before 2016-17 will be completely waived off," it said.

In case a taxpayer fails to settle his tax dues by March 31, 2023, he shall be liable to pay all tax dues along with interest and penalty since 2004 or since whichever year it has been pending and shall not be entitled to any waiver.

Coercive measures to collect the tax dues shall be launched against such defaulters from April 1 next year, the statement said.

It stated that if any taxpayer has already paid dues for any of the years from 2017-18 or 2016-17 but that has not been recorded in MCD tax data will have to submit the proof of payment so that the tax database can be updated.

Such cases where principal, interest and penalty have already been paid before the launch of the scheme, shall not be reassessed and reopened, the statement added.

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