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Delhi LG launches property tax amnesty scheme

By Rishabh Chamoli | 2022-10-29

In order to expedite tax collection, a new property tax amnesty scheme SAMRIDDHI 2022 to 23 has been launched in Delhi. This scheme not only strives to widen the coverage of the tax net but also aims to provide relief to several property owners from pending dues.

Delhi Lieutenant Governor Vinai Kumar Saxena launched a one time property tax amnesty scheme, SAMRIDDHI 2022 to 23 on October 25, 2022. The scheme is valid from October 26, 2022 till March 31, 2023. It aims to provide relief to commercial and residential property owners in the city.

What is SAMRIDHHI 2022 to 23?
SAMRIDDHI stands for The Strengthening and Augmentation of Municipal Revenue for Infrastructure Development in Delhi. This scheme is valid from October 26, 2022 till March 31, 2023, with no further extension. This scheme is launched to resolve thousands of pending court cases since the unit area method for property tax calculation came into existence in 2004.

How to pay property tax under SAMRIDDHI scheme?
Residential property owners who opt for the SAMRIDDHI scheme are required to pay the principal amounts for One Plus Five years. So the tax for residential properties will be calculated for six years, that is, the current financial year, and for years 2017 to 18 to 2021 to 22. In the case of commercial units, the owners have to pay tax for One Plus Six years, which means the current year and from 2016 to 17 to 2021 to 22. The property owners will get a 100 percent exemption from the interest and penalty on the outstanding tax amount and a waiver on all dues prior to 2016 to 17. This payment can be scrutinised for a year after which the case will be settled.

For the unplanned areas, taxpayers of residential properties in these colonies have to pay the principal amount of property tax dues for the financial years 2021 22 and 2022 to 23. Following this, all the outstanding property tax dues prior to FY 2021 to 22 would be waived off.

What are the stringent measures to be taken against tax defaulters?
The Authority plans to take coercive measures against defaulters to collect tax starting April 1, 2023. If a taxpayer opts for this scheme and 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 the pending year. Moreover, he shall not be entitled to any waiver.

Additionally, if a taxpayer has already paid dues for any of the years from 2017 to 18 or 2016 to 17 but has not been recorded in Municipal Corporation of Delhi (MCD) tax data, he will have to submit the proof of payment so that the tax database can be updated.

Despite several amnesty schemes, Delhis property tax net remains with limited coverage. On September 14, 2022, the MCD also announced an amnesty scheme for properties in unauthorised colonies, unauthorised regularised colonies, Lal Dora, Extended Lal Dora, and Extended Abadis of villages.