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Who has to pay the Property Tax?


The Property Tax mainly charge as per Section 66 of the NDMC Act as follows:-
 

  1. (a) if the land or building is let, upon the lessor;

  2. (b) if the land or building is sub-let, upon the superior lessor;

  3. (c) if the land or building is un-let , upon the person in whom the right to let the same vests:

  4. (d) owner/owners - joint & several.

  5. (e) on failure from above, from the occupier of such land or building by attachment of rent U/S 108.


What was the procedure of Assessment before 2009?

On the basis of one of the following, as applicable:

  1. (i) on capital cost basis

  2. (ii) on actual rent basis.

  3. (iii) on comparable rent basis.


What is the procedure of Assessment after 2009 i.e. on coming into force of Unit Area Method/Rent Bye Laws 2009?

On the basis of one of the following, as applicable:

  1. (i) Special category of land and buildings i.e. union properties, state or used as school, college, hospital, guest house, clubs, cinema hall, hotels and such other lands and buildings as may be specified by valuation committee. (As per Bye Law 3)

    Cost of land as per circle rates X Total Land in sq. meter X Age Factor

    Cost of Construction: @15000/ per sq. metre X Covered Area X Age Factor.

  2. (ii) Under Unit Area Method (as per Bye Law 4) other than above properties.

    1. (a) Unit rate X Total Land

    2. (b) Unit rate X covered area X Use Factor x Occupancy Factor X AF (Age Factor)

    3. Annual Value A + B

  3. (iii) UAM/Actual Rent whichever is higher

The copy of the Property Tax Return form is enclosed.


What is the procedure to be followed for issuing the Property Tax Bills every year?


After preparing an Assessment list, a Public Notice is issued calling for objections as per section 70 of the NDMC Act. After removal of objections, an assessment list is finalized and authenticated. The same is placed before the tax payers for their information.


What is the mode of paying property tax & in whose favour?


Through cheque, one can pay the property tax and pay in favor of "Secretary, NDMC" payable at New Delhi.


Penalty in case of non-payment of property tax?


In case of non-payment of property tax on issuance of property tax bill, a demand notice is issued under section 100 of the Act giving one-month time and after that penalty up to 20% of the Property Tax can be imposed as provided under section 101 of the Act.

Which actions are to be taken for recovery of Property Tax ?


  1. (a) In case of default rent can be attached as per Section 108 of the Act in case of rented property.

  2. (b) Attachment of bank account and/or property as per section 102 of the Act.

  3. (c) Recovery suit can be filed as per section 106 of the Act.


What is the procedure to change/mutation/transfer in the name of properties?


A notice for each transaction has to be given as per section 74 of the Act to transfer/change the name (mutation) without penalty.

  1. (a) within three months of sale / purchase.

  2. (b) within six months of death (if any person primarily liable for payment has expired).


Which documents are required for getting mutation /transfer/ change of name ?


  1. (i) A Request for mutation / transfer / change of name.

  2. (ii) Complete chain of documents (ownership / sale/purchase).

  3. (iii) An Affidavit on stamp paper of Rs.10/-.

  4. (iv) An Indemnity Bond on Stamp Paper of Rs.100/-

  5. (v) Clearance of upto date dues.

  6. (vi) Payment of Rs.100/- as fine for failure to give notice.

  7. (vii) In case of death: Death Certificate.

  8. (viii) Copy of Will.

  9. (ix) NOC / Release Deed

In which cases notice under section 63 will be issued?


As per Section 63 (2)- The rateable value of any land, which is not built upon, but is capable of being built upon and of any land on which a building is in process of erection shall be fixed at five percent of estimated capital value of such land.


In which cases notice under section 72 will be issued. (In case of non-finalization of Property Tax Return)?


As per Section 72 (1) The Chairperson may, at any time, amend the assessment list -

  1. (a) by inserting therein the name of any person whose name ought to be inserted; or

  2. (b) by inserting therein any land of building previously omitted; or

  3. (c) by striking out the name of any person not liable for the payment of property tax; or

  4. (d) by increasing or reducing for adequate reasons the amount of any rateable value and of the assessment thereupon; or

  5. (e) by making or cancelling any entry exempting any land or building from liability to property tax; or

  6. (f) by altering the assessment on the land or building which has been erroneou7sly valued or assessed through fraud, mistake or accident; or

  7. (g) by inserting or altering an entry in respect of any building erected, re-erected, altered or added to, after preparation of the assessment list:


Provided that so person shall by reason of any such amendment become liable to pay any tax or increase of tax in respect of any period prior to the commencement of the year in which the notice under sub-section (2) is given.

(2) Before making any amendment under sub-section (1) the Chairperson shall give to any person affected by the amendment, notice of not less than one month that he proposes to make the amendment and consider any objection which may be made by such person.


What is the Period for completion of process of transfer?


Within 30 days, if the documents are complete.


Penalty / fine for non- submitting the information in a time bound manner ?


Rs.100/- as per Tenth Schedule of the Act.


To Whom should the citizen approach for any grievances ?


To the Assessing Authority i.e. Dy. Director (Tax)/ Jt. Director (Tax) at:

  1. 1. E-mail id - jd.tax@ndmc.gov.in

  2. 2. Phone - 23367001

  3. 3. By raising grievance at citizen application/NDMC website i.e. www.ndmc.gov.in


Properties that are eligible for exemption?


  1. Under Section 62 Land and buildings excluding occupied & used for public worship or by a society or body for a charitable purpose.

  2. Agricultural lands & buildings (other than dwelling units)

  3. Lands & building vested in the Council.

  4. Union properties as per Section 65 of the Act (liable for service charge as per OM issued by Government of India).


How tax payers can claim/seek vacancy remission in case of tenant vacate the premises?


As per Section 109 - If any building is wholly or partly demolished or destroyed or otherwise deprived of value, the Chairperson may, on the application in writing of the owner or occupier, remit or refund such portion of any tax assessed on the rateable value thereof as he thinks fit.

As per Section 110
(1) - If any building together with land appurtenant there to has remained vacant and unproductive of rent for sixty or more consecutive days, the Chairperson shall remit or refund, as the case may be, two-thirds of such portion of the property tax assessed on the rateable value thereof, as may be proportionate to the number of days during which the said building together with the land appurtenant thereto has remained vacant and unproductive of rent.
(2) - If any land , not being land appurtenant to a building, has remained vacant and unproductive of rent for sixty or more consecutive days, the Chairperson shall remit or refund, as the case may be, one half of such portion of the property tax assessed on the rateable value thereof, as may be, proportionate to the number of days during which the said land has remained vacant and unproductive of rent.

As per Section 112 - No remission or refund under section 110 or section 111 shall be made unless notice in writing of the fact that land, building or tenement has become vacant and unproductive of rent has been given to the Chairperson, and no remission or refund shall take effect in respect of any period commencing more than fifteen days before delivery of such notice.


Is Bye Laws 2009 under challenge?


Yes. Various associations have challenged certain provisions of NDMC Act and Bye Laws 2009 before Hon'ble High Court. No stay has been granted by the Hon'ble High Court so tax payers are bound to pay the property tax under Bye Laws-2009.