Residents of Delhi may suffer a setback, as a significant increase in property tax is possible

The current base unit area value for A category colonies in Delhi is Rs 630. The B category costs Rs 500, while the C category costs Rs 400.

New Delhi: India People in the nation’s capital may be surprised. The Fifth City Valuation Committee (MVC) has recommended an increase in six factors used to calculate the annual value of a property, which may result in an increase in property tax in Delhi. These recommendations were made by the committee in its interim report to the Municipal Corporation of Delhi (MCD). The committee stated in the report that these six factors must be increased due to inflation.

The first MVC suggested a base unit area value

MCD has posted the report on its website and issued a public notice inviting the general public to submit comments. According to the report, “there is a suggestion for a 37% increase in the property’s base unit value.” The first Municipal Valuation Committee recommended the Base Unit Area Value in 2004. It has remained unchanged until now.

What effect will it have?

If the MVC’s proposed hike is implemented, it could result in an increase in property taxes throughout the city, including residential colonies. A property’s annual rateable value is determined by six factors: base unit area value, total covered area, property age, occupancy (owned or rented), structural factors (semi-cast or concrete), and use factor (residential or commercial). Property taxes are calculated as a fixed percentage of this value.

Delhi Colonies Division

Delhi’s colonies are classified into eight categories, from A to H. Posh areas are colonized in categories A and B, middle-class neighborhoods in C and D, lower-middle-class areas in E and F, and unauthorized colonies in G and H. The price for Category A is Rs 800, Rs 680 for Category B, Rs 550 for Category C, Rs 440 for Category D, and Rs 370 for Category E.

Newz Orbit

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