NEW DELHI: The South Delhi Municipal Corporation on Friday tabled its budget for 2020-21, in which it has proposed an increase in property tax and classification of properties in two categories, instead of three at present, for the purpose of taxation.
In Delhi, properties are divided into three categories – A and B, which attracts 12 per cent tax, C,D,E, which attracts 11 per cent tax, and F,G and H, which attracts 7 per cent tax.
Under the new proposal it has been decided that properties in the A,B,C,D and E areas will be placed in one category that will be charged 12 per cent tax, and those in the F, G and H areas will pay 7 per cent tax.
“SDMC is trying to maximise going digital for collecting taxes. However, during the rush days of submission of taxes, the online and offline options are there. So far residential, commercial and business plots of up to 150 square metres were divided into three categories. I propose that in the financial year 2020-21, it is reduced to two categories,” the newly appointed commissioner, Gyanesh Bharti, said during the budget presentation.
The proposal stated that the target of wealth tax revenue for the financial year 2020-21 had been increased to Rs 1,000 crore, while in the financial year 2019-20, it was Rs 800 crore.
The SDMC generated revenue of Rs 945 crore from property tax last year. The number of taxpayers, 3,62,173 in the financial year 2018-19, has increased to 3,83,395 in 2019-20.